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On Monday April 19, 2021 The Federal Government of Canada released the first new federal budget in over two years, titled “Budget 2021 – A Recovery Plan for Jobs, Growth, and Resilience.” At over 700 pages, Budget 2021 is the most expensive, detailed, and far-reaching federal budget in recent Canadian history. We've prepared this review to pull out some highlights relevant to First Nations, Métis, and Inuit leaders across the country. As we all know, this budget has not yet passed, but here's what the government is saying it plans to do.
Budget 2021 includes $101.04 billion in investment over the next three years, with a historic $18 billion allocated to closing the gaps between Indigenous and non-Indigenous peoples by supporting healthy, safe, and prosperous Indigenous communities, and advancing meaningful reconciliation with First Nations, Inuit, and the Métis Nation.
Chapter Eight of Budget 2021 titled “Strong Indigenous Communities” is organized into four priority areas of federal investment:
Each of these priority investment areas have specific goals and outcomes with a funding target associated with each priority.
The federal government recently introduced legislation that, if passed, would provide a one-time payment of up to $1 billion to provinces and territories to support vaccination rollouts across the country, and could be used to engage Indigenous communities to advance vaccine rollout. Indigenous communities have worked hard to combat the virus but the pandemic is not over and Indigenous communities remain at risk.
Budget 2021 proposes to provide an additional $1.2 billion in 2021-22 to continue supporting the COVID-19 response in Indigenous communities as follows:
Since 2015, the Government of Canada has invested over $5.5 billion to improve health outcomes in Indigenous communities. These investments have increased access to timely and culturally appropriate medical care and mental health services for Indigenous people and supported distinctions-based priorities. This includes dedicated funding for First Nations children through the implementation of Jordan’s Principle, responding to high rates of tuberculosis in Inuit communities and supporting the Métis Nation in gathering health data and developing a health strategy to address the distinct and unique needs of the Métis Nation.
Budget 2021 proposes to invest $1.4 billion over five years, beginning in 2021-22, and $40.6 million ongoing, to maintain essential health care services for First Nations and Inuit, continue work to transform First Nations health systems, and respond to the health impacts of climate change:
Since 2015, investments the Government of Canada has made have improved learning experiences for approximately 107,000 students per year and helped build 186 education-related infrastructure projects benefiting 240 First Nations communities. Investing in children’s education is an important part of the government’s plan to build long-term economic resilience. In 2019, the federal government implemented a new, co-developed policy and funding approach to better support the needs of First Nations students on reserve.
To invest in the future of First Nations children and continue to support this new approach, Budget 2021 proposes to invest $1.2 billion over five years, and $181.8 million ongoing:
Investments in clean water, housing, and other community infrastructure are intended to accelerate the federal government’s 10-year commitment to close the infrastructure gaps in Indigenous communities, which could include all-weather roads, northern airstrips, broadband, health care and educational facilities.
Budget 2021 proposes distinctions-based investments of $6.0 billion over five years, starting in 2021-22, with $388.9 million ongoing, to support infrastructure in Indigenous communities:
Indigenous communities, like all communities in Canada, should be places where people and families feel safe and secure. A well-funded, culturally sensitive, and respectful police service is essential for community safety and well-being.
Budget 2021 proposes to provide $861 million over five years, beginning in 2021-22, and $145 million ongoing, to support culturally responsive policing and community safety services in Indigenous communities:
The proposed Budget 2021 investments build on investments made as part of the 2020 Fall Economic Statement, which announced $781.5 million over five years, beginning in 2021-22 and $106.3 million ongoing. This included:
To help advance a new fiscal relationship with First Nations, a new 10-year grant funding mechanism was implemented in 2019. This initiative aims to provide more long-term stabilized program supports for eligible First Nations who choose to join the grant. It allows them to build capacity, do effective planning, and account for inflation and population increases on reserve. The Government of Canada has also committed to escalate the 10-year grants to address price and population growth and ensure that funding keeps pace with the needs of First Nations.
Access to reliable and culturally relevant data on Indigenous peoples is critical to building a complete portrait of Indigenous lived experiences, unmasking inequalities, and ensuring delivery of effective policies and programs. Indigenous-led data strategies can further self-determination by providing First Nations, Inuit, and Métis Nation governments and organizations with the data they need to support their communities.
After hearing about all that is wrapped up in this federal budget, you may be asking yourself, “now what” or “what’s next?”
Now that the Budget has been tabled in the House of Commons, Members of Parliament are now debating the bill and determining whether any changes need to happen prior to the Budget being brough to a vote. In addition to the Budget, there is also a piece of legislation called the Budget Implementation Bill. This bill will set out how the Budget will be implemented and is set to be tabled in the House of Commons next week.
It is important to note that both Budget 2021 and the Budget Implementation Bill need to be supported by the majority of MPs in the House of Commons. There is still time to provide input and it is critical to act quickly in voicing support, questions, concerns, or opposition. Budget 2021 is an important milestone in Canada’s history as a path forward is being charted that will see the country through the pandemic, or what we’ve often heard referred to as “unprecedented times.”
If Budget 2021 and the Budget Implementation Act are passed, we will see significant federal investment flow into the Canadian economy with a substantial portion allocated to indigenous communities. However, should Budget 2021 be defeated, Canadians will be heading to the polls shortly in another federal election.
We are an Canadian B Corp, and we assist Indigenous communities with support throughout regulatory processes surrounding major development projects like mines, hydroelectric facilities, transmission lines, highway expansions, oil and gas pipelines, natural resource transport applications and nuclear power.
We have deep context and experience behind the recommendations we provide, having worked for our clients on almost every major project in Canada over the last 10 years. For us, it’s all about building long-term relationships with our clients. We want to get to know you and what you want to do so we can help you move your plans forward.