Appearance at the Standing Committee on Public Accounts (PACP) - 2025 Report of the Office of the Auditor General of Canada: Follow-up on Programs for First Nations - April 27, 2026

Indigenous Services Canada

• Michelle Kovacevic, Deputy Minister
• Candice St-Aubin, Senior Assistant Deputy Minister
• Richard Goodyear, Chief Financial Officer
• Jennifer Wheatley, Assistant Deputy Minister
• Curtis Bergeron, Director

Office of the Auditor General of Canada

• Karen Hogan, Auditor General of Canada
• Glenn Wheeler, Principal

Increased access to health services and improved management of health resources (since 2022-23)

• The percentage of health infrastructure rated as "good" has exceeded the target of 75%, with results ranging between 80% and 84%.
• The percentage of the eligible First Nations and Inuit population who received at least one non-insured health benefit in a year has met the target of 74%.

Expanded access to Community Oral Health Services

• The number of sites with active Community Oral Health Services have increased from 309 in 2022 to 331 in 2024, reflecting expanded services coverage across communities.

Educational attainment is rising

• In 2021, there were 80,280 more Indigenous people aged 25-64 with a high school level education than in 2016, strengthening long-term socio-economic foundations.

Improved access to safe drinking water

• 43 long-term drinking water advisories have been lifted since 2021. As of February 19, 2026, 39 advisories remain, a decrease of 14 (26.4%) since 2021.
  • 19 of the 39 affected systems (49%) have infrastructure that can produce clean drinking water.
  • 20 of the 39 affected systems (51%) need operational improvements before the advisory can be lifted.
  • 39 active long-term advisories affect approximately 5,756 homes and 361 community buildings.
• 314 short-term drinking water advisories were prevented from becoming new long-term advisories since November 2015. As of Sept 30, 2025, there were 16 short term drinking water advisories.

Strengthened emergency management readiness nationwide

• ISC has ensured that its national emergency management plan and all regional plans are current. These plans are maintained on a two-year update cycle.
• 82% of communities deemed high risk have an Emergency Management Coordinator or access to one through a Tribal Council or other Indigenous organizations.

Housing conditioning are improving

• The greatest improvements in the number of crowded households were found for Registered Indians living on reserve, going from 12,160 crowded households in 2016 to 10,705 in 2021, a difference of 1,455.
• 6,005 fewer households of Registered Indians living on reserve and 485 fewer households of Registered Indians living off reserve required major repairs to their dwelling between 2016 and 2021.

Income outcomes are improving

• The income gap between Indigenous and non-Indigenous people narrowed across all distinction groups, even after inflation, by $4,500 to $9,900, and 136,000 fewer Indigenous people were living in low-income situations in 2021 than in 2015.

Earnings increased, even with stable employment

• While employment rates remained broadly unchanged, Indigenous workers saw real earnings increase by $800 to $4,200 per year between 2016 and 2021.

Key Data

• The overall number of frontline nurses within the Department increased 17% from 593 in 2021 to 692 in 2024. The number of Indigenous Services Canada (ISC) nurses working in remote and isolated Indigenous communities increased 8% from 366 in 2021 to 396 in 2024.
• In our workforce, as of September 2024, 30% of ISC Licensed Practical Nurses and 21% of the Registered Nurses and Nurse Practitioners self-identified as Indigenous.
• As of April 1, 2025, the 1st of 50 ISC run nursing stations had been accredited and five (5) nursing stations (three in Alberta and two in Manitoba) are in the early stages of accreditation, with broader planning underway to assess all nursing stations against accreditation standards.
• In total, 28 nurse practitioners, 75 licensed practical nurses, and 13 Registered Nurse positions have been added to the compliment of frontline workforce, across 50 communities.
• Performance Indicator
  • Percentage of remote and isolated communities with access to an interdisciplinary model of care.
  • Source: ISC Nursing Staff Scheduler
  • Target: 100%
  • Result for September 2025: 76%, this increases to 92% when provincially funded physicians are included.

Points to Register

• The Department has made significant efforts and investments over time to improve access to essential health services including:
  • $354 million over five years (Budget 2021) to address urgent primary care needs in remote and isolated communities, including modernizing the workforce through an interdisciplinary model, improving recruitment and retention, and ensuring safe and high-quality care.
  • $40.5 million over five years (Budget 2022) to support the Nursing Services Response Centre, supporting the needs of nurses such as IT, compensation, Occupational Health and Safety, and security concerns.
  • $91.3 million over four years (Budget 2024) for security personnel recruitment, training and salaries, security systems, and occupational health and safety repairs to address safety and security risks to primary care workers at ISC-funded or managed healthcare facilities in remote and isolated communities.
• Since 2017, ISC has implemented interdisciplinary models of care to support the existing Registered Nurses (RN) workforce and meet community essential health service needs. Nurse practitioners, whose expanded scope includes diagnosing, prescribing and treatment, were first introduced in response to limited access to provincial physicians. In 2021, licensed practical nurses were introduced to care for clients with stable, predictable conditions and paramedics were added to care for clients with urgent and emergent health conditions.
• In total, 28 nurse practitioners, 75 licensed practical nurses, and 13 Registered Nurse positions have been added to the compliment of frontline workforce, across 50 communities.
• ISC supports safe essential health service provision through equipping its frontline workforce with clinical support tools such as clinical care protocols, clinical policies and procedures, and regular access to clinical practice support staff to support evidence-based clinical decision making.
• Significant progress has been made on many of the recommendations in the report related to access to essential health services; ISC remains committed to working in partnership with First Nations to clearly articulate its intended provision of Clinical and Client Care services, identify barriers to service delivery, and design solutions that enhance quality and sustainability of these services. This work will help ensure that nursing stations continue to meet essential standards while reflecting the unique needs, cultures, and priorities of the communities they serve.
• ISC is strengthening its quality improvement processes, based on accreditation standards to steadily work towards industry best practices in remote and isolated communities. Accreditation standards are the Department's mechanism for ensuring comparable access to quality care.
• As of April 1, 2025, the 1st of 50 ISC run nursing stations had been accredited, and work is active both nationally and regionally towards meeting accreditation standards.
• The Department currently has five (5) nursing stations (three in Alberta and two in Manitoba) that are in the early stages of accreditation, with broader planning underway to assess all nursing stations against accreditation standards.

Current Status

• ISC is in the process of updating the Basket of Services (BOS) document for services offered by the Clinical Client Care program in remote and isolated First Nations communities. This document describes the services that can be safely offered in communities along with the health human resources and material resources required to deliver these services.
• In parallel to this update, a gap analysis is underway to identify policy gaps within the organization which will feed into a continuous quality improvement process for the services offered by the Department in line with the accreditation standards.
• ISC conducts patient safety reviews of reported incidents experienced during health care interactions to identify contributing factors and takes action to improve care delivery in the future along with the implementation of best practices for quality improvement.
• Engagements are ongoing with the communities served by ISC to develop regional procedures to guide any necessary reduction and suspension of services in the case of security concerns, natural disasters, staff shortages and other significant events.

Background

• Indigenous Services Canada supports Clinical and Client Care services in 79 remote and isolated First Nations communities, and two hospitals in Manitoba. Of these communities, Indigenous Services Canada directly delivers primary health care services in 50 remote and isolated communities in four regions (Alberta (4), Manitoba (21), Ontario (24) and Quebec (1)).
• Provision of essential health services to remote and isolated Indigenous communities is shared between federal and provincial governments. Physician services on reserve are provided by provincially compensated physicians. When hospital or advanced treatment services are required, ISC supports the clients to travel to provincial centres to receive care that cannot be safely provided in community.
• Nursing stations are the cornerstone of health care delivery in remote and isolated First Nations communities, providing a full spectrum of clinical and client care services that are vital to supporting equitable access to health care.

Key Data

• The implementation of the Indigenous Services Canada (ISC) Nursing Health Human Resources framework has resulted in the overall number of frontline nurses within the Department increasing 17% from 593 in 2021 to 692 in 2024.
• Similarly, the number of ISC nurses working in remote and isolated Indigenous communities increased 8% from 366 in 2021 to 396 in 2024.
• In our workforce, as of September 2024, 30% of ISC Licensed Practical Nurses and 21% of the Registered Nurses and Nurse Practitioners self-identified as Indigenous. As a result of the recruitment advances made to date, ISC has improved recruitment by 221%; 57 nurses were hired in FY 2022/23 compared to 183 in FY 2024/25.
• In January 2026, ISC's average operational registered nurse vacancy was 23% which is supplemented with other health professionals, such as paramedics.
• Performance Indicator
  • Agency nurse cost as a percentage of total nursing costs nationally
  • Source: Annual Indicator reporting FY 2024/25
  • Target: at most 45% by March 2026
  • Result: 46%
  • Percentage of remote and isolated communities with access to an interdisciplinary model of care
  • Source: ISC Nursing Station Scheduler September 2025
  • Target: 100%
  • Result for September 2025: 76%, this increases to 92% when provincially funded physicians are included.

Points to Register

• We continue to face a national nursing shortage across the country, impacting health service provision across health systems in Canada, including on-reserve services provided or funded by Indigenous Services Canada. In addition, challenges persists for the recruitment and retention of nurses in remote and isolated communities given the demanding nature of the work and the diverse skill set required, unparalleled in any other nursing environments.
• Significant investments and efforts have been made by the Department over time to respond to these health human resource challenges including:
  • $354 million over five years (Budget 2021) to address urgent primary care needs in remote and isolated communities, including modernizing the workforce through an interdisciplinary model, improving recruitment and retention, and ensuring safe and high-quality care.
  • $40.5 million over five years (Budget 2022) to support the Nursing Services Response Centre, supporting the needs of nurses such as IT, compensation, Occupational Health and Safety, and security concerns.
  • $91.3 million over four years (Budget 2024) for security personnel recruitment, training and salaries, security systems, and occupational health and safety repairs to address safety and security risks to primary care workers at ISC-funded or managed healthcare facilities in remote and isolated communities.
• ISC has developed and is implementing a Nursing Health Human Resources Framework aimed at improving recruitment and retention. As actions linked to this framework, ISC has implemented interprofessional teams, introduced nurse practitioners, licensed practical nurses and paramedics to the team, streamlined recruitment, as well as implemented a Nursing Services Response Centre, and have improved the compensation package offered to the frontline health workforce.
• The OAG acknowledged the Department's strong and continued efforts to improve nursing capacity in First Nations communities and assigned ISC with a satisfactory progress rating for the 2021 audit of the Health Resources for Indigenous Communities.
• In January 2026, ISC's average operational registered nurse vacancy was 23% which is supplemented with other health professionals, such as paramedics.
• ISC is committed to working with First Nations leadership, provincial government officials and other partners to find solutions to the ongoing health human resource challenge to ensure that high-quality, culturally safe, accessible, and effective health services are provided in remote and isolated Indigenous communities.

Current Status

• The ISC Nursing Health Human Resources Framework was updated in 2025 to ensure its continuing relevance. The implementation of this Framework is supported by investments in Budget 2021 ($354M), Budget 2022 ($40.5M) and Budget 2024 ($91.3M).
• The 2024 ratified PIPSC collective agreement that impacts registered nurses and nurse practitioners was implemented throughout 2025 and is expected to continue to positively impact retention.
• Funded through Budget 2024, in 2025-26, $25.5M has been distributed to support the introduction of 24/7 security personnel in 79 remote and isolated communities where ISC employs and supports the delivery of healthcare.
• Also supported through Budget 2024, ISC has invested $3M in 2024-25, $725K in 2025-26 and earmarked an additional $425K in 2026-27 to respond to identified and prioritized security and occupational health and safety concerns in nursing stations and professional accommodations to improve frontline retention.

Background

• Indigenous Services Canada supports Clinical and Client Care program services in 79 remote and isolated First Nations communities, and two hospitals in Manitoba. Of these communities, Indigenous Services Canada directly delivers primary health care services in 50 remote and isolated communities in four regions (Alberta (4), Manitoba (21), Ontario (24) and Quebec (1)).
• Exacerbated by the pandemic, the country is experiencing a national nursing shortage overall. Statistics Canada's Job Vacancy Report for the 3rd quarter of 2025 demonstrates the ongoing nursing HHR challenges faced by Canada (The Daily – Job vacancies, third quarter 2025). Despite a decline in 2025 compared to previous years, nursing job vacancies remained significantly above pre-COVID-19 pandemic levels (27,695 in Q3 of 2025 vs 14,845 in the fourth quarter of 2019).
• Significant investment totalling $485.8M through Budgets 2021, 2022 and 2024, is supporting the continued implementation of the ISC Nursing Health Human Resource Framework.
• The Nursing Services Response Centre was put in place with funding from Budget 2022 to respond to compensation, information technology and security challenges regularly faced by the frontline nurses and known to impact their retention. Since implementation of this Response Centre, frontline nurses have indicated their satisfaction with the service through the Nursing Workforce Survey (Report (PDF)).
• The Department has implemented Field Safety Officers that do regular site inspections, create action plans, and follow up on the action plans to satisfy maintenance requirements. Budget 2024 included $91.3M to fund repairs and maintenance of identified occupational health and safety issues.

Key Data

• ISC compliance with mandatory training has increased substantially and the Department has met its 80% target for the completion of mandatory training courses from 2023-24 and 2024-25 for the existing workforce.
• Performance Indicator
  • Percentage of existing nurses who have obtained recertification on each of the 5 mandatory training courses prior to their expiration
  • Source: ISC Mandatory Training Cumulative Q1/Q2 Quarterly Report (September 2025)
  • Target: 80%
  • Result:
    • Emergency Training (ACLS, PALS, ITLS) = 73.6%
    • Immunization Certification = 84.4%
    • Controlled Drugs and Substances = 86.1%

Points to Register

• Indigenous Services Canada prioritizes the development of a competent frontline nursing workforce through the offering of extended orientations that include cultural safety and humility and on-going training for nurses to ensure the provision of quality essential services.
• ISC has made an investment of $354 million over five years (Budget 2021) to support, among other things, the procurement of the Learning Management System (LMS) that will be used to improve the consistency of quarterly tracking of mandatory training.
• Since 2015, ISC has regularly updated its mandatory training policy for frontline nurses, and implemented targets and quarterly tracking of compliance. As a result, compliance with mandatory training has increased substantially since 2015 and has met its 80% target for the completion of mandatory training courses from 2023-24 and 2024-25 for the existing workforce.
• A mandatory 15 hours of cultural competency training is required of all ISC employees every year, including frontline nurses and this training is part of each employee's performance agreement.

Current Status

• A learning management system (LMS) has recently been procured to support nurse orientation and training.
• This system will enhance the consistency of quarterly tracking of mandatory training nationally.

Background

• Nurses working in remote and isolated Indigenous communities require a broader range of competencies than nurses working in urban and rural centres.
• When hired, it is rare that nurses come with the entire breadth of competencies required.
• While it is standard practice across all nursing domains to receive an orientation ranging from several weeks to several months, in the ISC context, orientation and Primary Care Nurse Training ranges up to a year.
• ISC's suite of mandatory trainings for primary care nurses includes the clinical response to emergency situations, the handling of controlled substances, and immunization.

Key Data

• 71% (35 of 49) of nursing stations were inspected over three years, excluding one newly built station.
• Indigenous Services Canada (ISC) has increased the frequency of inspections from every five years, at the time of the original audit, to every three years.
• ISC supported construction of six nursing stations since the 2015 audit; five received the required compliance documentation (though one was submitted several years post-construction).

Points to Register

• First Nations manage their community health infrastructure to support health service delivery.
• ISC will continue to support First Nations in assuming greater control over services and to support access to dedicated, safe and culturally appropriate health facilities, including by:
  1. Improving the building condition inspection process for nursing stations
     • ISC will provide First Nations with a written record of building inspection results and share information on the annual funding allocation intended to address identified issues.
  2. Working with First Nation communities to ensure that new nursing stations are built according to applicable building codes
     • ISC will continue to ensure that health facilities are constructed to applicable building codes by obtaining documentation from First Nations.

Current Status

• The department will provide inspection results to First Nations as well as details on the funding provided to support the operation and maintenance of health facilities.
• ISC is preparing a new action plan to address the concerns raised in the Office of the Auditor General's (OAG's) follow-up report, expected to be finalized by winter 2026-27.

Background

• The OAG's Status Report, tabled on October 21, 2025, reports on progress made on the 2015 report's recommendations between 2015 and April 1, 2025.
• The 2015 audit identified two recommendations related to health facilities:
  • The department should work with First Nations communities to ensure that nursing stations are inspected on a regular basis and that deficiencies related to health and safety requirements or building codes are addressed in a timely manner.
  • The department should work with First Nations communities to ensure that new nursing stations are built according to applicable building codes.
• The Fall 2025 Follow-up on Programs for First Nations found unsatisfactory progress on the first recommendation (regarding inspections) and satisfactory progress on the second recommendation (regarding building codes).

Key Data

• NIHB Program Expenditures
  • FY 2024/25 total expenditures of $2,330.7M
  • Of this $880.2M in medical transportation expenditures (37.8%)
• Performance Indicator Data
  • Medical transportation system modernization project to be completed by March 31, 2029

Points to Register

• While there were many aspects of this audit, the OAG found that since the 2015 audit, ISC revised the information required from First Nations to access [the Non-Insured Health Benefits Program] medical transportation benefits and established policies for handling related data.
• ISC agrees with the OAG's finding that the data captured in the current legacy Medical Transportation Record System is incomplete.
• ISC's NIHB Program is currently taking steps to address this finding through system modernization and process standardization, consistent with the Treasury Board Policy on Service and Digital.

Current Status

• ISC agrees with the OAG's finding that the data captured in the current legacy Medical Transportation Record System is incomplete.
• The NIHB Program is currently taking steps to address this finding through system modernization and process standardization, consistent with the Treasury Board Policy on Service and Digital.

Background

• In 2025, the OAG undertook a follow-up of several previous audits, including the recommendations arising from this 2015 audit.
• One aspect of the 2015 audit related to the NIHB Program medical transportation benefit, more specifically, that ISC (formerly HC) should "maintain sufficient documentation to comply with the Treasury Board's 2009 Directive on Recordkeeping and to demonstrate that medical transportation benefits are administered according to Health Canada's 2005 Medical Transportation Policy Framework."
• OAG found that since the 2015 audit, ISC revised the information required from First Nations to access medical transportation benefits and established policies for handling related data.
• The NIHB program addressed the original recommendation from the 2015 audit, creating documentation to guide lifecycle management of documentation to comply with the Treasury Board Directive on Record Keeping.

Key Data

• Indigenous Services Canada (ISC) maintains a centralized PPE stockpile to support 50 nursing stations and 81 health centres where ISC employs health workers.
• During the COVID-19 pandemic, ISC:
  • Processed over 1,600 PPE requests.
  • Distributed more than 3 million PPE items.
  • Supported over 450 First Nations communities and organizations, including remote and fly-in communities.
  • Maintained an average delivery time of 10 days, despite national supply chain disruptions.
• Since the COVID-19 pandemic, ISC has transitioned from emergency response to a stable, performance driven PPE stockpile model with following to note where ISC:
  • Achieved 100% fulfillment of on-reserve PPE requests, including during public health emergency surges.
  • Reduced internal processing time so that 100% of PPE requests are actioned within 2 business days.
• Performance Indicator
  • Percentage of PPE requests actioned within 2 business days
  • Source: ISC PPE GC Case Reporting
  • Target: 100%
  • Result: 100% met

Points to Register

• Over the pandemic period, ISC operated a rapidly expanding PPE stockpile as an emergency response measure during COVID-19, managing unprecedented volumes amid global supply shortages.
• Since then, ISC maintains a stockpile based on policy analysis and lessons learned. The stockpile serves as a tertiary, emergency backstop, used only when:
  • Provincial/territorial systems cannot respond in time, and
  • The Public Health Agency of Canada's National Emergency Strategic Stockpile (PHAC NESS) cannot meet urgent PPE needed to support health service delivery in First Nations communities.
• The stockpile ensures ISC meets its legal obligations under Canada Labour Code and Occupational Health and Safety Regulations to protect ISC-employed health workers.
• The OAG concluded in this report that ISC's adoption of the Warehouse Management System and strengthened procurement controls represented a satisfactory response to audit findings related to PPE stockpile accuracy and emergency preparedness.
• Increased funding during COVID-19 pandemic supported ISC to manage an increased PPE stockpile, and increased requests from communities:
  • FY 2020/21: $4,187,389.10
  • FY 2021/22: $3,391,574.29
  • FY 2022/23: $2,591,429.23
• ISC's PPE model has evolved from crisis-driven response to a planned, accountable emergency readiness function focused continuity of care.

Current Status

• PPE demand has declined since 2022, but emergency surges persist.
• The stockpile currently supports:
  • ISC-employed health workers and
  • First Nations communities experiencing public health emergencies where other systems cannot respond in time.
• Procurement is conducted using Public Services and Procurement Canada's standing offers, ensuring supply integrity and value for money.
• ISC is actively strengthening stock rotation, disposal, and donation practices to minimize expired inventory while maintaining emergency readiness.
• ISC's immediate next step is to maintain readiness to scale procurement and distribution rapidly in response to emerging public health threats.

Background

• ISC maintains a PPE stockpile to support health service delivery in First Nations communities, particularly where ISC employs staff.
• The stockpile is designed to address emergency surges, protect health workers from communicable disease exposure, and ensure continuity of care during outbreaks.
• Investments during this period enabled the Department to build systems that now support accurate inventory tracking, scalable procurement, and timely emergency distribution.

Key Data

• The implementation of the Indigenous Services Canada (ISC) Nursing Health Human Resources framework has resulted in the overall number of frontline nurses within the Department increasing 17% from 593 in 2021 to 692 in 2024.
• Similarly, the number of ISC nurses working in remote and isolated Indigenous communities increased 8% from 366 in 2021 to 396 in 2024.
• In our workforce, as of September 2024, 30% of ISC Licensed Practical Nurses and 21% of the Registered Nurses and Nurse Practitioners self-identified as Indigenous. As a result of the recruitment advances made to date, ISC has improved recruitment by 221%; 57 nurses were hired in FY 2022/23 compared to 183 in FY 2024/25.
• In January 2026, ISC's average operational registered nurse vacancy was 23% which is supplemented with other health professionals, such as paramedics.
• Performance Indicator
  • Agency nurse cost as a percentage of total nursing costs nationally
  • Source: Annual Indicator reporting FY 2024/25
  • Target: at most 45% by March 2026
  • Result: 46%
  • Percentage of remote and isolated communities with access to an interdisciplinary model of care
  • Source: ISC Nursing Station Scheduler September 2025
  • Target: 100%
  • Result for September 2025: 76%, this increases to 92% when provincially funded physicians are included.

Points to Register

• We continue to face a national nursing shortage across the country, impacting health service provision across health systems in Canada, including on-reserve services provided or funded by Indigenous Services Canada. In addition, challenges persists for the recruitment and retention of nurses in remote and isolated communities given the demanding nature of the work and the diverse skill set required, unparalleled in any other nursing environments.
• Significant investments and efforts have been made by the Department over time to respond to these health human resource challenges including:
  • $354 million over five years (Budget 2021) to address urgent primary care needs in remote and isolated communities, including modernizing the workforce through an interdisciplinary model, improving recruitment and retention, and ensuring safe and high-quality care.
  • $40.5 million over five years (Budget 2022) to support the Nursing Services Response Centre, supporting the needs of nurses such as IT, compensation, Occupational Health and Safety, and security concerns.
  • $91.3 million over four years (Budget 2024) for security personnel recruitment, training and salaries, security systems, and occupational health and safety repairs to address safety and security risks to primary care workers at ISC-funded or managed healthcare facilities in remote and isolated communities.
• ISC has developed and is implementing a Nursing Health Human Resources Framework aimed at improving recruitment and retention. As actions linked to this framework, ISC has implemented interprofessional teams, introduced nurse practitioners, licensed practical nurses and paramedics to the team, streamlined recruitment, as well as implemented a Nursing Services Response Centre, and have improved the compensation package offered to the frontline health workforce.
• The OAG acknowledged the Department's strong and continued efforts to improve nursing capacity in First Nations communities and assigned ISC with a satisfactory progress rating for the 2021 audit of the Health Resources for Indigenous Communities.
• In January 2026, ISC's average operational registered nurse vacancy was 23% which is supplemented with other health professionals, such as paramedics.
• ISC is committed to working with First Nations leadership, provincial government officials and other partners to find solutions to the ongoing health human resource challenge to ensure that high-quality, culturally safe, accessible, and effective health services are provided in remote and isolated Indigenous communities.

Current Status

• The ISC Nursing Health Human Resources Framework was updated in 2025 to ensure its continuing relevance. The implementation of this Framework is supported by investments in Budget 2021 ($354M), Budget 2022 ($40.5M) and Budget 2024 ($91.3M).
• The 2024 ratified PIPSC collective agreement that impacts registered nurses and nurse practitioners was implemented throughout 2025 and is expected to continue to positively impact retention.
• Funded through Budget 2024, in 2025-26, $25.5M has been distributed to support the introduction of 24/7 security personnel in 79 remote and isolated communities where ISC employs and supports the delivery of healthcare.
• Also supported through Budget 2024, ISC has invested $3M in 2024-25, $725K in 2025-26 and earmarked an additional $425K in 2026-27 to respond to identified and prioritized security and occupational health and safety concerns in nursing stations and professional accommodations to improve frontline retention.

Background

• Indigenous Services Canada supports Clinical and Client Care program services in 79 remote and isolated First Nations communities, and two hospitals in Manitoba. Of these communities, Indigenous Services Canada directly delivers primary health care services in 50 remote and isolated communities in four regions (Alberta (4), Manitoba (21), Ontario (24) and Quebec (1)).
• Exacerbated by the pandemic, the country is experiencing a national nursing shortage overall. Statistics Canada's Job Vacancy Report for the 3rd quarter of 2025 demonstrates the ongoing nursing HHR challenges faced by Canada (The Daily – Job vacancies, third quarter 2025). Despite a decline in 2025 compared to previous years, nursing job vacancies remained significantly above pre-COVID-19 pandemic levels (27,695 in Q3 of 2025 vs 14,845 in the fourth quarter of 2019).
• Significant investment totalling $485.8M through Budgets 2021, 2022 and 2024, is supporting the continued implementation of the ISC Nursing Health Human Resource Framework.
• The Nursing Services Response Centre was put in place with funding from Budget 2022 to respond to compensation, information technology and security challenges regularly faced by the frontline nurses and known to impact their retention. Since implementation of this Response Centre, frontline nurses have indicated their satisfaction with the service through the Nursing Workforce Survey (Report (PDF)).
• The Department has implemented Field Safety Officers that do regular site inspections, create action plans, and follow up on the action plans to satisfy maintenance requirements. Budget 2024 included $91.3M to fund repairs and maintenance of identified occupational health and safety issues.

Key Data

• Community Oral Health Services (COHS) are supporting access to oral health services in 331 communities. This includes 31 communities where services are directly provided by Indigenous Services Canada (ISC) employees.
• COHS has completed both didactic and clinical calibration training with representatives from 4 out of 6 ISC regions, with ongoing efforts to complete the training in the remaining regions. COHS providers from 5 out of 6 regions have been provided data documentation training, with the one for the final region to be completed in March 2026.
• Performance Indicator
  • Number of communities with access to COHS program
  • Source: National Dental Database
  • Result (as of September 2025): COHS program is currently supporting 331 First Nations communities.

Points to Register

• The Department recognizes the importance of improved oral health for Indigenous communities; progress has been made on the 6 recommendations related to oral health services.
• Targeted investment of $45.5M over five years (Budget 2017) for Community Oral Health Services (COHS) to:
  • expand COHS to communities having no previous access to the program.
  • expand the age range of clients accessing COHS
  • continue service delivery in communities that already had access to COHS.
• With this Budget 2017 investment, COHS program A-based funding increased from $4.5M to $18.39M per year, hence further strengthening the departmental efforts to improve oral health services and outcomes.
• Currently, ISC services are supporting access to oral health services in 331 communities.
• ISC supports safe provision of oral health services, by employing a skilled and competent oral health work force and equipping them with oral health services procedure protocols and calibration training for the collection of oral health surveillance data.
• ISC remains committed to the reporting, collection, and analysis of high-quality data obtained through the COHS program, and will continue to work towards improving data quality and accuracy, and create a comprehensive evidence base to inform the management of the COHS program.

Current Status

• ISC conducts annual training of oral health providers on dental public health data collection.
• ISC conducts a comprehensive review and analysis of program impacts every five years which informs ISC's national oral health report.

Background

• ISC continues to support direct access to preventative and treatment oral health care to individuals residing in First Nations and Inuit communities through the Children's Oral Health Initiative (COHI) since 2004. This initiative evolved to Community Oral Health Services (COHS) in 2019 with an expanded focus on children aged 0-7 years, their parents/caregivers and pregnant woman.
• The Department supports delivery of oral health services in 331 First Nations communities; this includes 31 communities where services are directly provided by ISC employees.
• Through the COHS program, oral health services are delivered primarily by dental hygienists and dental therapists. Trained community members known as COHS Aides are also involved in service delivery within communities.
• The core COHS suite of services includes diagnostic services, including oral health surveillance, and primary and secondary prevention. Services are provided in collaboration with other professionals within communities, such as nurses, teachers and health directors to promote the importance of oral health as integral to holistic health.

Key Data

• Indigenous Services Canada's (ISC) Community Oral Health Services (COHS) program supports access to oral health services in 331 communities.
• Access to and utilization of COHS services had risen steadily from 12,000 to 16,000 clients over time, with a high utilization rate of primary preventive services and relatively lower levels of unmet oral health needs.
• ISC intends to advance this internal analysis on an on-going basis every 5 years to inform program enhancements.
• Performance Indicator
  • Number of communities with access to COHS program
  • Source: National Dental Database
  • Result (as of September 2025): COHS program is currently supporting 331 First Nations communities.

Points to Register

• ISC collects oral health data through the Community Oral Health Services (COHS) program to serve as legal documentation for oral health screening, clinical care, as well as for program reporting and evaluation. ISC remains committed to improving data collection, analysis and reporting that is being done through the COHS program.
• ISC has successfully utilized these data to assess trends in oral health, service utilization rates and impact of the program in its first ever National Oral Health report, which was released in 2023.
• The report showed that both access to and utilization of COHS services had risen steadily from 12,000 to 16,000 clients over time, with a high utilization rate of primary preventive services and relatively lower levels of unmet oral health needs. This report will be completed on an on-going basis every 5 years to inform program enhancements.
• ISC remains committed to the reporting, collection, and analysis of high-quality data obtained through the Community Oral Health Services (COHS) program, and will continue to work towards improving data quality and accuracy, and create a comprehensive evidence base to inform the management of the COHS program.
• ISC has made targeted investment of $45.5M over five years (Budget 2017) for Community Oral Health Services (COHS) to:
  • expand COHS to communities having no previous access to the program;
  • expand the age range of clients accessing COHS;
  • continue service delivery in communities that already had access to COHS.
• With this Budget 2017 investment, COHS A-based program funding increased from $4.5M to $18.39M per year, hence further strengthening the departmental efforts to improve oral health services and outcomes.

Current Status

• Data improvement is an on-going cyclical process under COHS program, this ongoing process will entail improvements in data collection and data housing processes as and when required.
• ISC will continue training on oral health data entry and data collection on an annual basis. This also includes clinical calibration training on a bi-annual basis.
• ISC will create Community Oral Health outcomes dashboards to provide a cross-sectional snapshot of oral health status and service utilization.
• Department will implement annual data quality assurance protocol and strives to compile and create the next iteration of the COHS National Oral Health Report that will be shared with national Indigenous partners.

Background

• As part of its Data Improvement Strategy, and in line with the OAG Audit findings, the COHS program completed several activities:
  • Improvements and enhancements to its data collection forms to maximize collection of oral health outcomes and service data utilization and facilitate appropriate analyses.
  • Improvements to the national dental database to facilitate safe and smooth transfer and housing of COHS program data.
  • Creation of didactic and clinical calibration protocols to minimize errors in data collection.
  • Creation of COHS program objectives and indicators.
  • Creation of COHS data quality assurance protocol to ensure timely regional data entry.
• The COHS program completed an internal analysis of oral health data from 2007-2020, in its National Oral Health Report in 2023. The report showed that both access to and utilization of COHS services had risen steadily from 12,000 to 16,000 clients over time, with a high utilization rate of primary preventive services and relatively lower levels of unmet oral health needs.

Key Data

• NIHB Program Expenditures:
  • 2024-25 total expenditures of $2,330.7M
  • Of this $425.0M were dental expenditures (18.2%)

Points to Register

• Indigenous Services Canada's (ISC) Non-Insured Health Benefit (NIHB) program is considered one of the most comprehensive public health programs in Canada providing registered First Nations and recognized Inuit with coverage for health benefits, including a broad range of eligible dental services such as:
  • diagnostic, preventive, restorative, endodontic, periodontal, removable prosthodontics, oral surgery, adjunctive and orthodontics.
• The NIHB program is universal, covering all eligible First Nations and Inuit clients regardless of age, income, location or other proxy measures of socio-economic need.
• The NIHB Program does not directly deliver clinical care/services to its target population as it relies predominantly on a fee for service (private practice) model, where clients have the autonomy to choose their provider.
• The department has built and maintains relationships with First Nations and Inuit partners and national dental organizations to provide information about oral health services covered for First Nations and Inuit.

Current Status

• As recognized by the OAG, the department has enhanced the management of the NIHB benefits by clarifying the scope of its pre-approval and appeal service standards.
• In addition, NIHB improved the reliability of specific data by integrating it into the main dental benefit processing system which increased control to reduce data entry errors.
• The NIHB program understands the OAG recommendation to clarify the process for making changes to its list of oral health services and the importance of updating clients and providers and has advanced work in this area to update and create:
  • process maps,
  • governance structures, and
  • communications and engagement plans.
• ISC has taken initial steps to address the OAG's recommendation and updated its relevant policy documentation and process maps to be more detailed
• In addition, NIHB actively engages in bilateral meetings with the national provider associations including the Canadian Dental Association, the Denturist Association of Canada and the Canadian Hygienist Association, allowing the provider groups to hear about any updates to the NIHB dental benefit via these tables in addition to the established communication pathways.
• ISC understands that the impact of these programs on the oral health of First Nations and Inuit is important.
• ISC will engage with Health Canada, the Office of the Chief Dental officer of Canada and Statistics Canada to explore the possibility of developing a national oral health data strategy, that will be representative of the whole Canadian population (including First Nations and Inuit Canadians).
• Additionally, ISC will explore the possibility of reporting the utilization of oral health services at the departmental level and will engage the National Oral Health Advisory Committee (NOHAC) for an update to their 2017 recommendations pertaining to ISC's data.

Background

• NIHB collects the information required for the processing and payment of claims, referred to as administrative data and does not collect surveillance or population level data.
• Dental policies are evidence-informed and consistent with NIHB's mandate of providing medically necessary dental benefits.
• ISC's NIHB program has a comprehensive and ongoing plan in place for engaging with dental providers to promote and create awareness of the program; this includes bilateral tables and direct link to communication sharing partnerships.

Key Data

• Indigenous Services Canada (ISC) has developed 14 new performance indicators aligned with the United Nations' Sustainable Development Goals to better measure progress in emergency management and resilience outcomes in collaboration with an Assembly of First Nations/ISC co-chaired First Nations Steering Committee.

Points to Register

• Since the 2022 audit, ISC has implemented measures to strengthen preparedness, coordination, response and accountability in emergency management services supporting First Nations.
• Through the Management Response Action Plan co-developed with First Nations partners, ISC has committed to advancing risk-based planning, capacity development, and is developing new multilateral emergency management agreements that place First Nations as full and equal partners in emergency management planning, response, and recovery.
• First Nations communities across the country can be assured that measures are in place to support their communities in the event of an emergency.

Current Status

• The Office of the Auditor General (OAG) found that ISC had not made satisfactory progress in consistently completing lessons learned exercises or in identifying and addressing shortcomings. ISC has undertaken multiple and concrete lessons learned exercises across the country led by First Nations as well as ISC's own annual reviews. These have resulted in tangible program improvements since 2023–24, such as streamlined financial processes.
• The OAG found that ISC had not made satisfactory progress toward establishing new bilateral or multilateral emergency management agreements. While no new agreements have been finalized since the 2022 audit, ISC has intentionally focused on advancing the co-development of multilateral agreements, rather than pursuing bilateral agreements in parallel. Doing so would risk duplicating efforts, impeding progress, and sending mixed messages to partners.
• ISC has developed 14 new performance indicators aligned with the United Nations' Sustainable Development Goals to better measure progress in emergency management and resilience outcomes in collaboration with an Assembly of First Nations/ISC co-chaired First Nations Steering Committee. The OAG found that ISC had not publicly reported on progress in relation to these indicators. As of November 27, 2025, these results are publicly available on ISC's website.
• The OAG found that ISC had not defined what is meant by comparable emergency management services for First Nations. Informed by recommendations from the joint ISC-Assembly of First Nations Steering Committee, ISC is addressing comparability with non-Indigenous communities by supporting First Nations partners to develop their own emergency management service standards in conjunction with the co-development of multilateral emergency management agreements.
• While this work progresses, ISC has published interim service standards on ISC's website.

Background

• ISC has worked in partnership with the Assembly of First Nations to co-lead a national First Nations Emergency Management Steering Committee, composed of First Nations emergency management experts and practitioners, to guide and inform the implementation of all seven-emergency management-related recommendations in the 2022 Audit.
• Through the Emergency Management Assistance Program, ISC also funds non-structural mitigation programs such as FireSmart and community preparedness training, and over 300 Emergency Management Coordinator positions.
• ISC maintains bilateral emergency management and wildfire service agreements with provinces, territories, and service delivery partners to support First Nations on reserve.
• The October 21, 2025, report by the Auditor General indicated three of the seven recommendations were deemed to have "unsatisfactory" progress with four of the seven evaluated as having "satisfactory" progress:
  • Service Agreements;
  • Performance Indicators; and
  • Comparable Service Standards.

Key Data

• Income: Between 2016 and 2021, median after-tax income increased for all Indigenous groups (≈ +$4,500 to $7,000), contributing to narrower income gaps with non-Indigenous populations; over the same period, 136,000 fewer Indigenous people lived in low-income situations.
• Economic Contribution: Indigenous Peoples generated $63.7 billion in Gross Domestic Income in 2023 (2.3% of national GDI), up from $34.5 billion in 2012 (+82.6%).
• Education: Post-secondary educational attainment among Indigenous adults increased between 2016 and 2021 (+4-6 percentage points), reflecting continued progress in educational outcomes.
• Housing: Census data show modest improvements in housing conditions between 2016 and 2021, including reductions in household crowding (≈ –3 percentage points) and dwellings requiring major repairs (≈ –4 percentage points).

Points to Register

• Addressing socio-economic gaps between Indigenous and non-Indigenous peoples in areas such as income, employment, education, housing, foster care, and incarceration is crucial for reconciliation.
• Indigenous governments require tailored, sustainable supports to build Indigenous-led data capacity for effective service delivery and outcome-based reporting to citizens.
• Indigenous Services Canada (ISC) is accountable to Indigenous peoples and all Canadians for working collaboratively to improve well-being in Indigenous communities and is committed to shifting from government-prescribed reporting toward Indigenous-led, outcome-based reporting—supporting Indigenous partners in articulating their priorities and aspirations, delivering effective services, and advancing their visions for self-determination.
• ISC has strengthened the measurement of socio-economic gaps in recent years, including through improved data collection, use, and sharing—particularly in education—to support better decision-making and outcomes.

Current Status

• Income and Employment: Between 2016 and 2021, income gaps narrowed across all Indigenous groups ($4,500–$9,900, after inflation); real earnings among employed Indigenous people increased by $800–$4,200, and 136,000 fewer Indigenous people lived in low income in 2021 compared to 2015.
• Economic Contributions: Indigenous economic activity reached $63.7B in 2023 (2.3% of national GDI), up from $34.5B in 2012 (+82.6%).
• Education: From 2016 to 2021, 80,280 more Indigenous adults completed high school and 47,980 more obtained a university degree, though the university completion gap widened from 15.9 to 22.9 percentage points.
• Housing: Housing conditions improved modestly between 2016 and 2021, with 1,455 fewer crowded households on reserve and 6,005 fewer on-reserve and 485 fewer off-reserve households requiring major repairs.
• Foster Care: Census data (private households only) show a slight decline in Indigenous children in foster care from 17,410 (2016) to 17,320 (2021), with rates largely stable except for a ~1 percentage-point increase among Inuit children.
• Indigenous Languages: In 2021, 243,155 people could conduct a conversation in an Indigenous language; over 70 languages are spoken, with 28.6% having 500 or fewer mother-tongue speakers.
• Incarceration: Indigenous adults represented 31.2% of incarcerated adults in 2021 (up from 29.9% in 2016), while the total number of incarcerated Indigenous adults declined by 28,190 (from 74,823 to 46,633).
• Next Steps (Near term): ISC will continue audits and evaluations to identify drivers of gaps and inform program adjustments and outcome-based reporting with Indigenous partners.

Background

• Compared to non-Indigenous populations, Indigenous Peoples in Canada face significant and long-standing socio-economic gaps, shaped by the enduring impacts of a long history of colonialism, discrimination, and marginalization.
• These gaps are measured using comparative socio-economic indicators (e.g., employment, income, poverty, housing conditions), primarily drawing on Census data and the Community Well-Being Index, which the Department has used in recent years to assess trends; both sources are updated on a five-year cycle, with the next update in 2026.

Key Data

• 2018-2025 Funding – $1,778,705 (Vote 1) to conduct five years of engagement with First Nations on a potential National Outcome-Based Framework.

Points to Register

• First Nations are committed to accountability and good governance, and are driving  the development of First Nations-led data capacity for effective service delivery and outcome-based reporting to citizens.
• The National Outcome-Based Framework was proposed in 2016 as a concept that could support First Nations-led reporting on socio-economic outcomes.
• Informed by engagement with First Nations leaders and technical experts, going forward this objective will instead be advanced through initiatives such as the First Nations-led Transformational Approach to Indigenous Data (TAID) and the United Nations Declaration on the Rights of Indigenous Peoples Act Action Plan Shared Priority 30, which focus on building Indigenous-led data institutions and capacity to support accountability for outcomes and Indigenous Data Sovereignty.
• The auditor general, as part of assessing the progress on "working with First Nations to establish a framework to measure and report on socio-economic gaps" in the 2025 Report to the Auditor General of Canada to the Parliament of Canada on the "Follow-up on Programs for First Nations, examined the work on the National Outcome-Based Framework, and deemed it satisfactory.
• Indigenous Services Canada's 2025 Report to Parliament provides a detailed update on the measurement of socio-economic gaps, including the completion of the National Outcome-Based Framework initiative.

Current Status

• Following five years of engagement and collaboration on a National Outcome-Based Framework, a series of reports summarizing the findings were completed in February 2025, translated, and shared with the First Nations Information Governance Centre for dissemination to partners.
  • The reports included: engagement reports from national program areas, technical experts, and First Nations leaders – which concluded that First Nations should be leading this work; and a report on First Nations Wellness Frameworks – to support the creation of First Nations-led frameworks. Work on the National Outcome-Based Framework is therefore considered complete.
• First Nations require sustained capacity supports to lead outcome-based reporting, including the ability to plan, define and report on priorities. This work is now being advanced and supported through recent developments in the Indigenous data landscape, including the First Nations-led Transformational Approach to Indigenous Data and the United Nations Declaration on the Rights of Indigenous Peoples Act Action Plan Shared Priority 30, to focus on Indigenous Data Sovereignty.
• This shift from government prescribed reporting to First Nations-led outcome-based reporting is a step toward a transformed relationship with First Nations communities supporting them in delivering effective services to their peoples, telling their own stories, participating in federal decision-making processes on matters that impact them as equal partners, and realizing their respective visions for self-determination.

Background

• What is the National Outcome-Based Framework?
  • The National Outcome-Based Framework is a set of adaptable resources designed to help First Nations governments lead their own outcome-based reporting. These resources can be used by First Nations to measure and report on their community's well-being and success based on their own priorities and ways of knowing and doing.
• What was the purpose of engaging with First Nations and data experts?
  • A 2016 Memorandum of Understanding between the Assembly of First Nations and Indigenous and Northern Affairs Canada called for the design of a new fiscal relationship that moves toward sufficient, predictable, and sustained funding for First Nations, including jointly producing "options for closing existing socio-economic gaps, including appropriate metrics and performance indicators".
  • Responding to these requests, since 2019, Indigenous Services Canada (ISC) has been working with First Nations citizens, data experts, leaders, and organizations to explore approaches that address First Nations-led reporting on socio-economic outcomes.
  • Three streams of engagement were supported to discuss the concept of a national outcome-based framework and to gather the input of First Nations leaders, subject-matter experts, and other stakeholders.
  • The engagement sessions found that development of an outcomes framework should be driven by First Nations governments themselves, in alignment with efforts to build First Nations-led data governance capacity to support accountability for outcomes, including TAID.

Key Data

• $71 million was invested in First Nations-led data capacity under this initiative since 2022.
• Ten regional and one national First Nations-specific Data Champion Teams were created.
• ISC administers 16 Information Sharing Agreements with Indigenous partners.

Points to Register

• Under the Transformational Approach to Indigenous Data, Indigenous Services Canada (ISC) has provided the First Nations Information Governance Centre with $71 million to build First Nations capacity to use data needed to measure socio-economic well-being, deliver services, govern, and advance their visions of data sovereignty. This work will address the Auditor General's findings that measures of socio-economic well-being were inadequate and that engagements with First Nations on how to measure well-being were lacking.
• The initiative has invested $12.9 million to improve the governance of data at ISC and improve First Nations' access, creating the conditions necessary for better use of departmental data. This work addresses the Auditor General's finding that ISC made limited use of data.
• The initiative provided $13 million to Statistics Canada to improve the availability of Indigenous data and support capacity building with partners, including First Nations.

Current Status

• ISC is administering over 58 Information Sharing Agreements, including 16 involving Indigenous partners. It is also leading an engagement on its upcoming Policy on External Data Sharing with organizations across distinctions. A draft What We Heard Report was shared with participants to gather targeted input. Finally, ISC works with partners as they complete their deliverables through regular bilateral functions.
• The First Nations Information Governance Centre (FNIGC) is finalizing an initial implementation blueprint for the future First Nations-led network of information governance centres. It is also developing workplans for demonstration projects to be funded through additional investments. These projects will ensure that the final implementation blueprint is feasible and accurately costed.
• Inuit Tapiriit Kanatami and the signatories to the Canada-Métis Nation Accord either finalized, or are finalizing, their data strategies. They are also developing workplans for future demonstration projects.

Background

• Previous approaches to addressing data gaps affecting Indigenous Peoples were predominantly government-led and did not always fully reflect the diverse priorities of Indigenous partners across distinctions.
• Transformational Approach to Indigenous Data promotes a partner-led approach. It was first supported by $81.5 million announced in Budget 2021 (2022-23 to 2024-2025) and then secured an additional $26.4 million in 2025 for the 2025-2026 fiscal year. It is expected that multiple rounds of funding will be required for the establishment of Indigenous-led statistical institutions and functions.
• TAID comprises several work streams.
  • Stream 1 is led by ISC and aims to improve data sharing with Indigenous partners as a first step towards the transfer of ISC's data assets along with service delivery responsibilities.
  • Stream 2 is led by the First Nations Information Governance Centre (FNIGC) and its regional partners and aims to implement the First Nations-led network of information governance centres that was envisioned in the First Nations Data Governance Strategy. FNIGC already established a national data champion team supported by 10 regional data champion teams.
  • Stream 3 is led by Inuit Tapiriit Kanatami. It aims to develop an Inuit Data Strategy as well as plan activities to implement the Strategy. This work supports the Inuit Nunangat Policy.
  • Stream 4 is led by the signatories to the Canada-Métis Nation Accord. It aims to develop Métis Nation data strategies and plan activities to implement them.
• Statistics Canada was funded under Budget 2021 to support Indigenous Delivery Partners in building data capacity and improve the visibility of Indigenous Peoples in Canada's national statistics, as a fifth stream; however, its funding was not renewed for 2025-2026.

Key Data

• Since November 2015 and as of April 16, 2026, 153 long-term drinking water advisories (LTDWA) have been lifted from public systems on reserve - improving access to clean drinking water for over 9,911 homes and 665 community buildings.
• The percentage water systems identified as high-risk decreased from 16% in 2015-16 to 9.7% in 2024-25, showing an improvement in reliable and sustainable water infrastructure.
• Based on 2024-2025 inspections, 97% of First Nations drinking water systems meet the Guidelines for Canadian Drinking Water Quality.

Points to Register

• Resolving outstanding long-term drinking water advisories (LTDWAs) remains a top priority for ISC.
• The Office of the Auditor General (OAG) follow-up report found that progress on implementing all five recommendations from the 2021 Audit has been unsatisfactory.
• Indigenous Services Canada (ISC) is committed to the following actions:
  1. Invest a minimum of $749 million per year through renewed funding (Recommendation 3.40)
     • Budget 2025 investments of $2.3 billion over three years will ensure over 800 projects underway can continue, including those addressing LTDWAs, and support an additional 270 new projects (2026-2029).
  2. Invest a minimum of $24 million annually towards First Nations capacity initiatives. (Recommendations 3.40 and 3.54)
     • Capacity initiatives, like the Circuit Rider Training Program, support First Nations to deliver programs.
     • Together with funding provided to operate and maintain water infrastructure, this funding will help First Nations to hire, train and retain qualified water operators. This will also help address 19 of the current 39 active long-term drinking water advisories that are in place due to operational concerns.
  3. Ensure that all communities have either a Community-Based Water Monitor or an Environmental Public Health Officer by March 31, 2027. (Recommendation 3.61)
     • This will ensure that 100% of communities have monitoring in place to sample, test and monitor drinking water quality across all public systems.
  4. Streamline and communicate asset condition assessments, annual performance inspections, and information on operations and maintenance funding to First Nations (Recommendations 3.61 and 3.77).
     • ISC will continue to provide information packages that provide First Nations with a detailed breakdown of their operations and maintenance funding. This information, as well as information on asset deficiencies, will help support First Nations to develop First Nations Infrastructure Investment Plans.
     • The Operations and Maintenance funding formula is intended to cover the day-to-day costs required to operate and maintain water or wastewater systems.
  5. Ensure that First Nations are supported to meet national standards for water quality for their public systems (Recommendation 3.90).
     • This will support continued improvement of water quality produced by public water systems on reserve.
     • The percentage of First Nations drinking water systems that meet the Guidelines for Canadian Drinking Water Quality is 97% (per 2024-2025 inspections).
• The Government has committed to introducing new water legislation for First Nations in spring 2026.

Current Status

• Budget 2025 announced $2.3 billion over three years, starting in 2026-27, to renew the First Nations Water and Wastewater Enhanced Program.
• As of April 16, forty (40) long-term drinking water advisories remain in effect in 37 communities. All have action plans in place to address the advisories.
• In December 2025, the Prime Minister committed to introducing clean drinking water legislation in spring 2026.
• ISC is preparing a new action plan to address the concerns raised in the OAG's follow-up report, expected to be finalized by winter 2026-27.

Background

• The five recommendations from the 2021 Audit of Access to Safe Drinking Water in First Nations communities include for ISC, working with First Nations communities, to:
  • 3.40: Strengthen efforts to eliminate all long-term drinking water advisories and prevent new ones from occurring.
  • 3.54: Implement long-term solutions.
  • 3.61: Proactively identify and address underlying deficiencies in water systems to prevent recurring advisories
  • 3.77: Make it a priority to identify the amount of funding needed by First Nations to operate and maintain drinking water infrastructure and amend the formula.
  • 3.90: Develop and implement a regulatory regime for safe drinking water.
• The key findings in the follow-up report in fall 2025 included:
  • There are still 35 long-term drinking water advisories as of April 1, 2025.
  • Of the 9 long-term drinking water advisories that were in place for a decade or more, 8 did not have a target date for implementing the long-term solution.
  • There were 9 reoccurring advisories between November 1, 2020 and April 1, 2025.
  • ISC's operations and maintenance funding formula was not amended to consider the state of drinking water systems.
  • First Nation communities do not have legally enforceable safe drinking water protections similar to what is in place in provinces and territories.

If pressed on Size of Operating Funds

• Of the $4.19B in Capital and Operating funds, $2.95B, 12% of total Main Estimates represent funds used for direct services such as the delivery of health services and the operations of federal schools to First Nations and Inuit.
• Only $0.61B,3% of Main Estimates is earmarked for Program management and delivery.
• Only $0.36B, 1% of Main Estimates accounts for internal services, such as human resources, financial management, information management and technology, legal services, communication and accommodations.
• $0.25B,1% of Main Estimates, is reserved in a fund for the multi-year administration and legal costs related to the 2023 Final Settlement Agreement to compensate First Nations children and families.

Key Data

• In 2025, 32,348 individuals were registered with an average registration processing time of less than six months which is an improvement from the five year average processing time reported by the Auditor General.
• Since the tabling of the Office of the Auditor General's report, the Department has reduced the backlog of applications exceeding the six-month service standard by 4,375, a decrease of 35%.
• In 2025, the average registration processing was less than 6 months. This update shows progress against the Auditor General's Report, which cited a 16 month wait time over a five-year sample (2019-2024).

Points to Register

• Indigenous Services Canada is committed to providing timely, fair, and transparent registration decisions for First Nations individuals under the Indian Act.
• Following the June 2025 audit by the Office of the Auditor General on registration, Indigenous Services Canada has initiated concrete actions across all seven recommendations to modernize operations, enhance accountability, and deliver lasting service improvements.
• By advancing digital transformation, improving staff training, and increasing operating efficiencies, Indigenous Services Canada is improving processing times and enhancing the client experience.
• Since the tabling of the Office of the Auditor General's report, the Department has reduced the backlog of applications exceeding the six-month service standard by 4,375, a decrease of 35%.

Current Status

• On October 10, 2025, the Deputy Minister approved the Department's comprehensive Action Plan responding to the Auditor's seven recommendations.
• A new national training curriculum has been implemented, and officer delegation (Devolved Administrative Authority of the Indian Registrar) processes are in place to ensure all decision-makers hold valid certification. Officers need to complete their recertification every three years.
• Regular quality assurance reviews are conducted to verify that registration decisions comply with the appropriate level of delegated decision-making, as well as relevant policies and procedures.
• Clear and measurable processing times and service standards have been established for applications for registration under the Indian Act as well for the Secure Certificate of Indian Status and are publicly available on the Department's web page.
• Additionally, a clear, measurable service standard has been established and published for protest submissions, including timelines, monitoring mechanisms and regular reporting.
• The Department continues to expand access to the digital application tool that is more efficient and client friendly compared to the long standing paper-based application approach.
• A public-facing indicator framework is being developed to report on outcomes, service standard performance and wait times.

Background

• In 2022, the Senate Standing Committee on Aboriginal Peoples issued the Make it Stop! Ending the Remaining Discrimination in Indian Registration report. One of the recommendations called upon the Office of the Auditor General of Canada to conduct a performance audit on registration activities.
• The registration process plays a significant role in the recognition of First Nations individuals in Canada, and is connected to rights, benefits and services.
• The 2025 Report by the Auditor General of Canada, Registration Under the Indian Act was tabled in Parliament on June 10, 2025.

Key Data

• As of December 31, 2025, 340,839 individuals, from a total of 1,139,870 individuals, are registered under section 6(2) of the Indian Act.
• If the registration provisions under the Indian Act do not change the total registered population is expected to reach 1.6 million by 2066.
• The single-parent rule, included as a solution to the second-generation cut-off in the proposed Senate amendments, is expected to lead to an additional 320,100 registered individuals by 2066, and population of 1,949,735 by 2066.
• At implementation, approximately 174,000 individuals would become newly eligible for registration under a retroactive single-parent rule (assuming retroactive removal of the second-generation cut-off effective January 1, 2027).

Points to Register

• Indigenous Services Canada (ISC) is committed to addressing inequities and broader reform issues in registration and membership under the Indian Act.
• Through Bill S-2, An Act to amend the Indian Act (new registration entitlements), Canada is proposing changes to the Indian Act that have been co-developed with Indigenous partners to address some remaining inequities, including legacy impacts of enfranchisement.
• While amendments were made by the Senate to include a remedy to the second generation cut off, consultation on solutions to the second-generation cut-off and section 10 voting thresholds continues.

Current Status

• The Senate made amendments to Bill S-2 on December 4, 2025, during third reading, to include a remedy to the second-generation cut-off by reversing to the pre-1985 approach of a single parent rule, with a 12-month delay of coming into force. Subsequently, the Bill was referred to the House of Commons and second reading was completed on February 27, 2026, however, the Bill is not yet law.
• On August 19, 2025, a judgment was rendered in Nicholas v AGC granting Canada an extension until April 30, 2026, to enact the proposed changes in Bill S-2.
• Five years after the implementation of the Bill S-2 amendments (2031), the registered population is projected to be approximately 95,180 higher than today (under the current version of the Indian Act).
• As of March 2026, 2,188 individuals impacted by Bill S-2 have already applied for registration.
• Following discussions with partners on Bill S-2 in its original form, there has been overall support, however, several partners have indicated that the Bill does not go far enough to address the second-generation cut-off. During the Senate Committee hearings on Bill S-2, the majority of witnesses who testified were in favour of amending the Bill to include a solution for the second-generation cut-off.
• On November 18, 2025, a clause-by-clause analysis was completed and the Senate made amendments to the Bill.
  • The amendments addressed the second-generation cut-off by introducing a single-parent solution rule, allowing an extension of entitlement indefinitely to future generations, with a 12-month delay coming into force to enable consultation with First Nations to continue.
  • Existing content in Bill S-2, related to enfranchisement, deregistration, natal band and offensive language would come into effect as soon as the law is passed.
• The Collaborative Process on the Second-Generation Cut-off and Section 10 Voting Thresholds, which seeks to find solutions to the second-generation cut-off (as well as Section 10 voting thresholds), is ongoing and is a commitment by Canada.
• Following a period of information sharing on the impacts of the second-generation cut-off, 53 First Nations and First Nations organizations were expected to put forward solutions by the end of December 2025. As of March 16, 2026, 38 final reports have been received. In March 2026, these solutions were assessed for legal and operational viability in advance of First Nations-led consultation events where Nations will discuss preferred approaches.
• The amended Bill S-2, including a remedy to the second-generation cut-off, was referred to the House of Commons, with first reading completed on  December 10, 2025, and second reading completed on February 27, 2026. The Bill was also referred to committee on February 27, 2026.

Background

• Registration and membership provisions in the Indian Act have been amended three times since 1985. Bill S-2 will be the fourth. There is criticism about the piece-meal approach.
• In response to Nicholas v AGC, the former Bill C-38 was introduced in December 2022 in the House of Commons. The former Bill did not receive Royal Assent prior to the end of the Parliamentary session in March 2025, and was reintroduced as Bill S-2 in the Senate on May 26, 2025.
• Bill S-2 addresses four main issues:
  • Enfranchisement: The proposed amendments will ensure that people with a family history of enfranchisement are treated equally to those without from a registration perspective.
  • Deregistration: The Indian Registrar will be able to remove a name from the Indian Register upon request from a registered individual. This ability does not exist today.
  • Loss of Natal Band Membership: The amendment supports women who, although did not lose entitlement to registration, lost entitlement to affiliation with their natal band upon marriage, to re-affiliate to their natal band, if they choose.
  • Outdated and Offensive Language: All references to "mentally incompetent Indian" will be removed from the Act and the term will be replaced with "dependent person."

Mandate of the Committee

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The Committee also reviews the federal government's consolidated financial statements – the Public Accounts of Canada – and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the Committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

• The Public Accounts of Canada;
• All reports of the Auditor General of Canada;
• The Office of the Auditor General's Departmental Plan and Departmental Results Report; and,
• Any other matter that the House of Commons shall, from time to time, refer to the Committee.

Committee Members