First Nations access greater flexibility and increased self-determination through the New Fiscal Relationship Grant

OTTAWA, UNCEDED ALGONQUIN TERRITORY, ON, Oct. 24, 2024 /CNW/ - The Government of Canada is working with First Nations to establish a new fiscal relationship that moves toward predictable, flexible and sufficient funding for First Nations communities that will support self-determination and increase their ability to plan for the future.

Today, Harold Calla, Executive Chair of the First Nations Financial Management Board, and the Honourable Patty Hajdu, Minister of Indigenous Services, announced the expansion of New Fiscal Relationship Grant eligibility to Tribal Councils and First Nations-led service delivery entities, such as health authorities.

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.

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 deadline for Tribal Councils and other First Nations-led service delivery entities to submit expressions of interest to join the Grant for the 2025-26 fiscal year is November 1^st, 2024. For more information and details on eligibility, please visit: New Fiscal Relationship Grant (sac-isc.gc.ca).

Quotes

"We are pleased to see the expansion of the New Fiscal Relationship Grant. This expansion further increases the options available to First Nations communities and arises from years of work led by AFN Chiefs' Committee on Fiscal Relations and the exploratory tables that were established as a result of that process. In the fall of 2017, FMB accepted the invitation to support this process and will continue to use its expertise and capacity to support the New Fiscal Relationship. FMB will not only provide assessments on whether applicants met the financial performance standards ISC and the AFN have agreed to, but we will support potential applicants in building the capacity so that they can met those standards."

Harold Calla
Executive Chair, First Nations Financial Management Board

"The New Fiscal Relationship Grant represents another step forward in strengthening the self-determination of First Nations. 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."

The Honourable Patty Hajdu
Minister of Indigenous Services

Quick facts

• In 2016, the Government of Canada signed a Memorandum of Understanding 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.
• 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.

Associated links

New Fiscal Relationship Grant (sac-isc.gc.ca)

First Nations Financial Management Board (fnfmb.com)

Assembly of First Nations: Representing First Nation citizens in Canada (afn.ca)

Stay connected

Join the conversation about Indigenous Peoples in Canada:

X: @GCIndigenous 
Facebook: @GCIndigenous
Instagram: @gcindigenous
Facebook: @GCIndigenousHealth 

SOURCE Indigenous Services Canada

For more information, media may contact: Jennifer Kozelj, Press Secretary, Office of the Honourable Patty Hajdu, Minister of Indigenous Services and Minister responsible for FedNor, [email protected]; Media Relations, Indigenous Services Canada, 819-953-1160, [email protected]