Indigenous leaders have expressed worry over the uncertainty surrounding key reconciliation programs in the recent federal budget, as funding for these programs is not guaranteed beyond the spring of 2026. Concerns have been raised that these programs could potentially face termination or significant budget cuts.
After the unveiling of the inaugural budget from Prime Minister Mark Carney’s minority Liberal government, a chart titled “Indigenous Reconciliation” began circulating on social media. The chart showcased various federal initiatives implemented since the fall of 2024, highlighting top-ups for critical programs such as on-reserve education, First Nations and Inuit children’s wellness, emergency management, and urban programming for the current year. However, future years displayed a series of zeros, indicating a lack of allocated funds.
Assembly of First Nations National Chief Cindy Woodhouse Nepinak expressed her apprehension regarding the future of these programs, referring to them as “sunset programs” with fixed funding or predetermined end dates that require further discussion. Woodhouse Nepinak pledged to seek immediate clarification from the Prime Minister’s Office on the potential cuts or terminations.
Inuit Tapiriit Kanatami President Natan Obed also shared similar concerns, particularly regarding the Inuit Child First Initiative, which is set to expire in March without any additional funding allocated in the budget. Obed mentioned the possibility of pursuing legal action if equitable services for Inuit children are not ensured.
Indigenous Services Minister Mandy Gull-Masty clarified that the government’s intention is to modernize the delivery of sunsetting programs and align their outcomes with community needs rather than discontinuing them. Programs like Urban Programming for Indigenous Peoples, which supports friendship centers in urban areas, are also at risk due to the lack of new funding.
While some, like the Manitoba Métis Federation, welcomed the budget, others had mixed reactions. The budget proposes limiting spending cuts at Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada to two percent, resulting in reductions of approximately $500 million per year at ISC. Notable new investments include $2.3 billion for safe water in First Nations communities and $10.1 million for Indigenous consultations on expedited projects.
Despite some positive aspects, concerns remain about the future of essential initiatives and the depth of the government’s commitment to reconciliation, as highlighted by Indigenous leaders and representatives across various Indigenous organizations.