In Mark Carney’s first budget as prime minister, Indigenous programs are facing budget cuts exceeding $2 billion. However, these programs are not bearing the brunt of Ottawa’s proposed government-wide spending reductions. The spending plan, presented by the Liberal minority government in the House of Commons, outlines a two per cent budget cut for Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada. This reduction equates to nearly $2.3 billion by spring 2030, significantly less than the up to 15 per cent cut over three years that was initially suggested in July.
While there are significant budget cuts in place, the government is allocating new funds for specific initiatives. Ottawa has pledged $2.3 billion over three years for ensuring safe water in First Nations communities and $10.1 million over the same period for Indigenous consultations on expedited projects undergoing regulatory processes. However, beyond these allocations, there are limited new funds for Indigenous-specific programs in the budget.
Finance Minister François-Philippe Champagne emphasized a commitment to reconciliation and reiterated the importance of the programs delivered by Crown-Indigenous Relations and Northern Affairs Canada and Indigenous Services Canada. The government aims to review how these organizations can operate more efficiently with a two per cent savings target.
Champagne stated that the budget strikes a balance between providing savings and safeguarding essential services for Canadians. Despite the relatively smaller budget cuts, Indigenous leaders had hoped for a more substantial financial injection to address the estimated $425 billion infrastructure gap in Indigenous communities.
The budget also indicates that funds from past spending commitments are still being utilized. For instance, a significant portion of the initially promised $4.3 billion for urban, rural, and northern Indigenous housing remains available. Additionally, the budget includes plans to negotiate tax agreements with interested Indigenous governments on fuel, alcohol, cannabis, tobacco, and vaping.
There are concerns among Indigenous advocates about expiring programs not being renewed, with little reassurance provided in the current budget. Specific Indigenous programs facing budget cuts have not been identified yet. However, there are provisions for Indigenous groups in other areas, such as the Arctic Infrastructure Fund, receiving $1 billion over four years for transportation projects and funding for regulatory processes in Canada’s North.
Furthermore, Indigenous communities can access the Build Communities Strong Fund, offering $51 billion over a decade. The budget also mentions support for projects like the Inuit Nunangat University and the Lac La Ronge Indian Band Kitsaki Hall in Saskatchewan. The minority Liberals require support from opposition parties for the budget to pass in the House of Commons; otherwise, a winter election may follow.