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Ottawa revises child welfare plan after $47.8B rejection

KCJ Media Group staff

December 27, 2025 at 5:37:00 p.m.

Ottawa revises child welfare plan after $47.8B rejection

Canadian News

First Nations leaders across Canada twice rejected a proposed child welfare reform agreement valued at $47.8 billion, prompting the federal government to submit a revised funding plan to the Canadian Human Rights Tribunal. The original deal, negotiated in 2024 following years of legal proceedings over claims of discriminatory underfunding of on-reserve child and family services.


Ottawa’s revised submission proposes more than $35.5 billion to support changes to First Nations child welfare programming through the 2033-34 fiscal year. The plan also outlines ongoing annual funding of $4.4 billion beyond that period, extending federal financial commitments on a continuing basis.


Federal planning documents show Indigenous-related expenditures account for a substantial share of government spending each year. Total annual spending on Indigenous priorities is estimated at about $32 billion in the 2024-25 fiscal year, covering areas such as health care, education, infrastructure, child services and related programs.


Within the broader federal budget, Indigenous Services Canada is projecting vote-authorized spending of roughly $25.2 billion in 2025-26, while Crown-Indigenous Relations and Northern Affairs Canada is seeking about $13.0 billion for the same period. These figures are included in the government’s 2025-26 Main Estimates.


In addition to core departmental funding, federal budgets have committed multi-year allocations to Indigenous communities and organizations. The 2024 budget, for example, included $1.8 billion to support expanded jurisdiction under legislation related to First Nations, Inuit and Métis children and families, along with additional annual funding for cultural and language initiatives.


Taken together, federal spending on Indigenous priorities since 2015 — including health, education, housing and reconciliation-related measures — is estimated at approximately $200 billion. The funding is drawn from general tax revenues and distributed through Indigenous governments and organizations. These commitments have remained in place for nearly two decades and continue to carry long-term financial implications for Canadian taxpayers.


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