OTTAWA, Ont.—The Government of Canada has announced plans to work with First Nations to establish a new fiscal relationship that moves toward predictable, flexible and sufficient funding for First Nations communities. The goal is that it will support self-determination and increase their ability to plan for the future. It will extend grant eligibility to to Tribal Councils and First Nations-led service delivery entities, such as health authorities.
The grant stems from a Memorandum of Understanding the Government of Canada signed in 2016 with the Assembly of First Nations to jointly research and develop proposals for the design of a new fiscal relationship between Canada and First Nations. The creation of the New Fiscal Relationship Grant was one of the recommendations made following engagement conducted with First Nations in 2017.
Established in 2019, the New Fiscal Relationship Grant was co-developed with the Assembly of First Nations and the First Nations Financial Management Board as an alternative funding mechanism that would provide more funding flexibility and predictability to First Nations, and support self-determination through effective and independent long-term planning based on community needs and priorities. The Grant flows funding to eligible recipients for up to 28 programs, including funding for education, primary health care, income assistance, and governance. Some of the key benefits of the grant include long-term funding predictability through a renewable term of up to 10 years, an annual funding escalator based on inflation and population growth, and an overall reduction in administrative reporting.
In 2024-25, 18 additional First Nations joined the Grant, bringing the total number of First Nations receiving funding through the Grant to 160. The average New Fiscal Relationship Grant escalator rate in 2024-25 was 5.1%, resulting in an additional $40 million being provided to Grant recipients, and a cumulative escalation total of over $100 million annually.
Over $1.5 billion in funding for 27 eligible programs will be delivered to 160 First Nations via the New Fiscal Relationship Grant in 2024-25. The number of eligible programs has been expanded to 28 for the 2025-26 fiscal year.
Expanding eligibility in the Grant to Tribal Councils and First Nations-led service delivery entities means that First Nations that receive services through these entities will be able to benefit from the specialization and economies of scale their service providers offer, as well as the flexibility, predictability and funding escalator provided by the Grant. The expansion also allows First Nations that may experience barriers to accessing the benefits of the Grant, such as small or remote First Nations, to benefit from the Grant through their chosen service providers. There are approximately 80 Tribal Councils, 38 health authorities and 170 other service delivery entities that may now be eligible for the Grant.
“The New Fiscal Relationship Grant represents another step forward in strengthening the self-determination of First Nations,” said the Honourable Patty Hajdu, Minister of Indigenous Services. “It’s important for communities to be able to design and deliver services based on their own needs, rather than being forced to use a one-size-fits-all approach. The expansion of the Grant to Tribal Councils and other First Nations-led service delivery entities will help ensure that more First Nations can access the benefits of the Grant so they can build the future they envision for their communities.”
Medical services will be one area that could be affected by this grant.
