Chapter 1: Making Life More Affordable and Supporting the Middle Class:

Investing in an Urban, Rural and Northern Indigenous Housing Strategy

• Budget 2022 announces the government’s intention to ensure a greater future for Indigenous communities and children. Budget 2023 proposes to commit an additional $4 billion throughout seven years, beginning in 2024-25, to implement a co-developed Urban, Rural, and Northern Indigenous Housing Strategy.

Chapter 2: A Housing Market that Works for Canadians

• Budget 2023 announces that the government will consult on changes required to remove regulatory barriers for homebuyers from diverse communities seeking access to alternative financing products.

Chapter 3: A Made-In-Canada Plan: Affordable Energy, Good Jobs, and Growing Clean Economy

A Strong Foundation:

• $4.2 billion for the Low Carbon Economy Fund to support the installation of emission-reducing technologies for provinces and territories.

An Investment Tax Credit for Clean Electricity:

• Canada’s electrical system includes a mix of private, public, and Indigenous-owned assets.

• Taxable and non-taxable entities such as Crown corporations and publicly owned utilities, corporations owned by Indigenous communities, and pension funds, would be eligible for the Clean Electricity Investment Tax Credit.

Supporting Clean Electricity Projects:

• Budget 2023 proposes to provide $3.0 billion over 13 years, starting in 2023-24, to Natural Resources Canada to:

  • Recapitalize funding for the Smart Renewables and Electrification Pathways Program to support critical regional priorities and Indigenous-led projects, and add transmission projects to the program’s eligibility.

Getting Major Projects Done:

• $40 million to Crown-Indigenous Relations and Northern Affairs Canada to support Northern regulatory processes.

• Budget 2023 proposes to provide $11.4 million over three years, starting in 2023-24, to Crown-Indigenous Relations and Northern Affairs Canada to engage with Indigenous communities and to update the federal guidelines for federal officials to fulfil the Crown’s duty to consult Indigenous peoples and accommodate impacts on their rights. This will support the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act and provide more clarity on how the government will proceed to ensure an effective and efficient whole-of-government approach to consultation and accommodation.

Investing in Canada’s Forest Economy

• The forestry sector plays an important role in Canada’s natural resource economy, and is a source of good careers in many rural communities across Canada, including Indigenous communities.

  • Budget 2023 proposes to provide $368.4 million over three years, starting in 2023-24, with $3.1 million in remaining amortization, to Natural Resources Canada to renew and update forest sector support, including for research and development, Indigenous and international leadership, and data. Of this amount, $30.1 million would be sourced from existing departmental resources.

Chapter 4: Advancing Reconciliation and Building a Canada that Works for Everyone

Key Ongoing Actions:

• Addressing the wrongdoings of the past and working to support a better future for all Canadians.

• $4.9 billion to enhance and reform services for Indigenous children, expand Indigenous-led mental wellness services, and support communities as they respond to and heal from the ongoing impact of residential schools;

• $4.3 billion over seven years to build and repair housing in Indigenous communities, including those who are self-governing and modern treaty holders;

• $1.6 billion over five years, starting in 2023-24, to implement Canada’s first National Adaptation Strategy, which is currently being finalized with input from provinces, territories, National Indigenous Organizations, and other stakeholders;

• $1.1 billion over seven years, starting in 2023-24, to conserve and protect nature in Canada and around the world, including $800 million to support up to four Indigenous-led conservation initiatives; and

• $100 million since 2020 to increase the federal contribution to legal aid services

4.1 Self-Determination and Prosperity for Indigenous Peoples

• Advancing Indigenous self-determination is critical to Canada’s future. Indigenous governments must be able to set and implement priorities respecting their communities, lands, and resources. Indigenous Peoples, businesses, and communities must have the opportunity to fully participate in the economy, and build opportunities for themselves and future generations in the ways they see fit, consistent with their constitutionally protected rights.

• Budget 2023 is investing in measures that will continue to advance service transfer to Indigenous governments and institutions, and unlock opportunities to advance economic reconciliation for Indigenous Peoples across Canada

Supporting Indigenous Governance, Capacity, and Participation in Decision-Making

• Budget 2023 proposes to deliver $76.3 million in 2023-24 to Indigenous Services Canada to continue to support the administrative capacity of First Nations governments and tribal councils delivering critical programs and services to their members.

Increasing Indigenous Participation in Northern Environmental Decision-Making:

• Indigenous participation in northern environmental decision-making processes is an example of self-determination in action. Major resource and infrastructure projects can offer Indigenous communities and other Northerners good jobs, revenue, and business development opportunities

• Budget 2023 proposes to provide $19.4 million over five years, starting in 2023-24, to Crown-Indigenous Relations and Northern Affairs Canada for the Northern Participant Funding Program to increase the participation of Indigenous Peoples and other Northerners in environmental and regulatory assessments of major projects.

• Budget 2023 also proposes to provide $1.6 million over two years, starting in 2023-24, to the Canadian Northern Economic Development Agency for the Northern Projects Management Office to increase capacity for federal participation in environmental assessments and consultation with Indigenous communities on major projects in the territories.

Advancing Self-Determination of Metis Communities:

• In February 2023, the Minister of Crown-Indigenous Relations signed updated Self-Government Recognition and Implementation Agreements with the Métis Nation of Alberta, the Métis Nation–Saskatchewan, and the Métis Nation of Ontario. These historic agreements came after more than a century of Métis ancestors fighting for recognition. These agreements, in addition to an agreement signed with the Manitoba Métis Federation in July 2021, formally recognize each Métis partner as the representative government of the Métis Nation in their respective provinces, with jurisdiction over core governance and other internal matters.

• The government will continue its collaborative work with these governments to conclude self-government treaties, guiding implementation of their unique visions for Métis self-determination

Tax Arrangements with Indigenous Governments

• The federal government remains committed to negotiating mutually beneficial tax agreements with interested Indigenous governments, including implementing the First Nations Goods and Services Tax within their settlement lands or reserves and, with interested self-governing Indigenous governments, to enable the implementation of personal income taxes within their settlement lands.

• The federal government is also making progress with Indigenous communities and organizations on a voluntary fuel, alcohol, cannabis, and tobacco (FACT) sales tax framework. The FACT framework would provide a new, flexible option for interested Indigenous governments to exercise tax jurisdiction within their reserves or settlement lands.

• The government will also continue to explore the potential role of additional tools, including tax arrangements, to enable Indigenous communities to meaningfully benefit from resource development.

Building an Economy that Works for Indigenous Peoples

• Budget 2023 proposes to provide $5 million in 2023-24 to Indigenous Services Canada to support the co-development of an Economic Reconciliation Framework with Indigenous partners that will increase economic opportunities for Indigenous Peoples, communities, and businesses.

• Building on the strong foundation set out in recent Indigenous-led initiatives, such as the National Indigenous Economic Strategy and the First Nations Financial Management Board’s RoadMap project, the Framework will help to define the role of federal and Indigenous organizations in advancing economic reconciliation through measures that reflect the unique needs, perspectives, and interests of Indigenous Peoples.

Supporting Indigenous Economic Participation in Major Projects

• The federal government is committed to further improving the quality and consistency of benefits that Indigenous communities derive from major projects in their territories, including through advancing opportunities for Indigenous communities to participate as partners in major projects

• Budget 2023 proposes to provide $8.7 million in 2023-24 to Natural Resources Canada to support deeper engagements with Indigenous partners, including Indigenous rights-holders, towards the development of the National Benefits-Sharing Framework.

• Budget 2023 announces that the Canada Infrastructure Bank will provide loans to Indigenous communities to support them in purchasing equity stakes in infrastructure projects in which the Bank is also investing. These loans will be sourced from the Canada Infrastructure Bank’s existing funding envelope.

  • The government will also continue to explore, through engagement on the National Benefits-Sharing Framework, additional federal supports to increase access to capital for Indigenous groups to invest in major resource projects.

Advancing Economic Reconciliation by Unlocking the Potential of First Nations Lands

• Budget 2023 proposes to provide $30 million over five years, starting in 2023-24, to Indigenous Services Canada to enhance the Reserve Land and Environment Management Program, ensuring First Nations can develop capacity to exercise increased responsibility over their lands, resources, and environment.

• Through Budget 2023, the government reaffirms its commitment to negotiate a renewed operating funding formula with the Lands Advisory Board to ensure the continued growth and success of First Nation Land Management.

• Budget 2023 also proposes to provide $35.3 million over three years, starting in 2023-24, to Crown-Indigenous Relations and Northern Affairs Canada and Natural Resources Canada to co-develop, with the Lands Advisory Board, a new First Nations-led National Land Registry that will provide communities in First Nation Land Management with more opportunities to realize the economic benefits arising from local control over their lands.

  • In December 2022, the Framework Agreement on First Nation Land Management Act received Royal Assent, building on the Framework Agreement on First Nation Land Management’s 25-year record of empowering First Nations to exercise their jurisdiction by opting out of Indian Act provisions related to land management

4.2 Investing in Indigenous Communities

• Budget 2023 includes new investments to strengthen accessible, culturally appropriate health care, to support Indigenous communities where everyone, including the most vulnerable, feels safe and supported, and to support community-led efforts to revitalize language, culture, and traditions.

• Canada is supporting strong, healthy Indigenous communities by confronting the damage of the past – and the challenges facing First Nations, Inuit, and Métis communities today—with forward-looking, Indigenous-led solutions.

Supporting Indigenous Health Priorities

• On February 7, 2023, the federal government announced major new investments in public health care, and is working with provinces and territories on delivering improvements that people in Canada—including Indigenous Peoples—expect and deserve. A key principle in bilateral agreements with provinces and territories is that Indigenous Peoples everywhere in Canada have the right to fair and equal access to health services, free from racism and discrimination.

• As part of the federal government’s plan to strengthen Canada’s universal public health care system, the government is investing $2 billion in new, additional funding over ten years for a distinctions-based Indigenous Health Equity Fund. This fund will address the unique challenges Indigenous Peoples face when accessing health care services, and support immediate and long-term Indigenous health priorities. Building on this investment, Budget 2023 proposes additional new measures to maintain essential health care services. Budget 2023 proposes to provide:

  • $810.6 million over five years, beginning in 2023-24, to support medical travel and to maintain medically necessary services through the Non-Insured Health Benefits Program, including mental health services, dental and vision care, and medications.

  • $16.2 million over three years, beginning in 2023-24, for interventions to reduce rates of tuberculosis in Inuit communities.

Supporting Safe and Affordable Housing in Indigenous Communities

• Since 2015, the federal government has committed $6.7 billion to support First Nations, Inuit, and Métis housing, including in self-governing and modern treaty communities, $4 billion of which was announced in Budget 2022. The funding so far has supported over 13,000 housing-related projects and home improvement and repairs, and more than 4,600 new homes in Indigenous communities.

• Budget 2022 also provided $300 million to support housing in urban, rural, and northern Indigenous communities. As outlined in Chapter 1, Budget 2023 is proposing to build on this initial work with a significant investment of $4 billion over seven years, starting in 2024-25, to implement an Urban, Rural, and Northern Indigenous Housing Strategy, currently under co-development with Indigenous partners.

Implementing the National Action Plan to End the Tragedy of Missing and Murdered Indigenous Women and Girls

• In collaboration with Indigenous partners, the federal government is accelerating the implementation of the Federal Pathway to Address Missing and Murdered Indigenous Women, Girls and 2SLGBTQQIA+ People. Building on the $2.2 billion provided in Budget 2021, Budget 2023 proposes investments that acknowledge the leadership of families and survivors in this process, and the need to increase accountability and ensure that progress is made. Budget 2023 proposes to provide:

  • $20 million over four years, starting in 2022-23, to support Indigenous-led projects for safer communities through the Pathways to Safe Indigenous Communities Initiative.

  • $95.8 million over five years, starting in 2023-24, and $20.4 million ongoing to help Indigenous families access information about their missing and murdered loved ones, and to enhance victim services to support their healing journeys. This funding would renew existing programming and expand it to include support for families of 2SLGBTQI+ Indigenous victims who are men.

  • $2.6 million over three years, starting in 2023-24, to support the National Family and Survivors Circle in keeping families and survivors at the centre of the implementation of the National Action Plan and the Federal Pathway.

  • $2.2 million over five years, starting in 2023-24, to establish an oversight mechanism to monitor and report on the progress of implementation.

  • $1.6 million over two years, starting in 202324, to support the Ministerial Special Representative appointed to provide advice and recommendations on the creation of an Indigenous and Human Rights Ombudsperson.

  • $2.5 million over five years, starting in 2023-24, to facilitate and coordinate work on advancing the National Action Plan by establishing a standing Federal-Provincial-Territorial-Indigenous table on Missing and Murdered Indigenous Women, Girls and 2SLGBTQI+ People. This table will provide a specific forum to act on areas of shared roles and responsibilities regarding Missing and Murdered Indigenous, Women, Girls, and 2SLGBTQI+ People, including prioritizing discussion on how to launch a “Red Dress Alert” to notify the public when an Indigenous woman or two-spirit person goes missing.

Supporting First Nations Children

• The government is committed to ensure that First Nations children receive proper support, as well as the communities are supported in their efforts to keep families together. The government continues to work with First Nations partners to advance long-term reforms to ensure that First Nations children will continue to receive timely, high-quality services.

  • Budget 2023 proposes to provide $171 million in 2022-23 to Indigenous Services Canada to ensure First Nations children continue to receive the support they need through Jordan’s Principle.

  • With funding announced in the 2022 Fall Economic Statement, Budget 2023 also provides $444.2 million over three years, starting in 2022-23, to support Peguis First Nation in Manitoba and Louis Bull Tribe First Nation in Alberta to exercise jurisdiction over their child welfare systems and make decisions about what is best for their children and families.

Gottfriedson Band Class Settlement Agreement

• The federal government is committed to addressing the harms that continue to affect First Nations, Inuit, and Métis children and their families. On January 18, 2023, the federal government signed an agreement to compensate 325 bands that opted in to the Gottfriedson Band Class litigation to address the collective harms caused by the loss of language, culture, and heritage through the residential school system. The settlement has since been approved by the Federal Court.

  • Budget 2023 provides $2.8 billion as part of the Band Class settlement, to establish a trust to support healing, wellness, education, heritage, language, and commemoration activities. The government will also propose legislative amendments to exclude the income and gains of the trust from taxation.

Local Food Infrastructure Fund Top-Up

• Northern, Indigenous, and remote communities face unique challenges when it comes to food security. Through the Local Food Infrastructure Fund, the federal government is supporting community-led efforts to address food insecurity by helping invest in the infrastructure needed to produce, store, and deliver locally-sourced food in a sustainable manner.

  • Budget 2023 proposes to provide $10 million in 2023-24 to top up the Local Food Infrastructure Fund to strengthen food security in Northern, rural, and Indigenous communities across Canada.

4.4 Building Communities Through Arts and Heritage

• The federal government supports opportunities for local artists, artisans, and heritage performers through festivals, events, and projects. This includes Indigenous cultural celebrations and the celebration of 2SLGBTQI+ communities.

  • Budget 2023 proposes to provide $14.0 million over two years, starting in 2024-25, for the Department of Canadian Heritage to support the Building Communities Through Arts and Heritage program.

Annex 2: Statement & Impact Report on Gender, Equality, Diversity and Quality of Life

Gender Results Framework

• Although Indigenous people continue to face gaps in terms of high school completion and post-secondary attainment, there were significant improvements in educational outcomes for Indigenous people between 2016 and 2021.

Budget 2023 Actions to Support Economic Participation and Prosperity

• Additional funding for engagements to support the further development of the National Benefits-Sharing Framework, including exploration of additional federal supports to increase access to capital for Indigenous people to invest in major resource projects.

• Loans through the Canada Infrastructure Bank to Indigenous communities to support them in purchasing equity stakes in infrastructure projects in which the Bank is also investing.