Final settlement agreement on Compensation and Agreement-in-Principle for long-term reform of First Nations Child and Family Services and Jordan's Principle

Update on the final settlement agreement on compensation, the agreement-in-principle on long-term reform of the First Nations Child and Family Services Program and on a long-term approach for Jordan's Principle, and the implementation of immediate measures.

July 2024 update on long-term reform

On July 11, 2024, the Assembly of First Nations, Chiefs of Ontario, Nishnawbe Aski Nation, and Canada reached an Agreement on the long-term reform of the First Nations Child and Family Services Program:

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Agreements-in-Principle

On January 4, 2022, the Government of Canada announced that 2 Agreements-in-Principle had been reached:

The Agreement-in-Principle on compensation included $20 billion in compensation for First Nations children on-reserve and in the Yukon, who were removed from their homes, and for their parents and caregivers. It also included compensation for those impacted by the government's narrow definition of Jordan's Principle, as well as for children who did not receive or were delayed receiving an essential public service or product.

The Agreement-in-Principle on long-term reform included approximately $20 billion, over five years, for the long-term reform of the First Nations Child and Family Services Program to ensure that the discrimination found by the Canadian Human Rights Tribunal never repeats itself. This included funding to support young First Nations adults aging out of the child welfare system and prevention services to help children and families residing on-reserve to stay together. There is also new funding for on-reserve housing to support prevention initiatives.

Who the Parties are

Compensation

The Parties involved in the negotiation of a final settlement agreement on compensation are:

  • Government of Canada
  • Assembly of First Nations
  • Plaintiffs in the Moushoom class action (represented by counsel)
  • Plaintiffs in the Trout class action (represented by counsel)

Long-term reform

The parties involved in the negotiation of a long-term reform final settlement agreement are:

Compensation

The Parties and Canada reached a final settlement agreement on compensation in April 2023. On July 26, 2023, the Canadian Human Rights Tribunal confirmed that the final settlement agreement fully meets the Tribunal's 2019 orders on compensation. The Federal Court of Canada approved it on October 24, 2023. That approval is now final.

The First Nations Child and Family Services, Jordan's Principle and Trout Class Settlement Agreement provides $23.3 billion for:

Some caregivers of the children above may also be eligible for compensation.

The Federal Court has appointed Deloitte as the third-party administrator responsible for implementing the final settlement. Deloitte is also responsible for addressing questions related to the settlement, and are maintaining a website with additional information.

Before any compensation can be provided to eligible individuals, there are some additional steps that need to be taken. The process to implement the settlement could begin later in 2024 for some classes.

To learn more or sign up for updates, visit the Deloitte website First Nations Child And Family Services And Jordan's Principle Settlement.

Resources

First Nations individuals seeking immediate emotional support can contact:

Kids Help Phone

For more information:

Long-term reform

The Agreement-in-Principle on the long-term reform of the First Nations Child and Family Services program and on a long-term approach for Jordan's Principle dedicates approximately $20 billion over 5 years and includes:

First Nations affirming their jurisdiction under the framework provided in the Act respecting First Nations, Inuit and Métis children, youth and families will receive the same funding they would have received under the reformed approach. Funding for the First Nations Child and Family Services program beyond 2029 will be determined through an approach set out in a final settlement agreement.

For more information:

Why long-term reform is needed

The long-term reform of First Nations Child and Family Services and long-term approach for Jordan's Principle are essential in:

  • reducing the number of First Nations children in care
  • keeping children connected to their families, communities and cultures
  • ensuring that First Nations children, youth and young adults have access to the services they need, when they need them

Canada and the Parties continue to work on a final settlement agreement on long-term reform.

Long-term reform of First Nations Child and Family Services

The goal of the First Nations Child and Family Services reform is to ensure First Nations children, youth, young adults and families have access to culturally-based and substantively equal public services that meet their needs and community circumstances. To do this, Indigenous Services Canada will design, test and implement a new evidence-informed funding approach.

The new evidence-informed funding approach will provide First Nations, delegated agencies and First Nations-authorized service providers with non-discriminatory, stable and predictable funding. This will allow them to deliver services and supports to promote family wellness and address the factors linked to the over-representation of First Nations children in care.

Examples of these services include:

  • culturally appropriate interventions and supports for children and young people with high needs, through services like counselling by youth workers and respite care
  • supports for parents experiencing multi-generational trauma and addictions, like:
    • family-based treatment
    • cultural supports
  • family reunification

Long-term approach for Jordan's Principle

The longer-term approach of the Jordan's Principle reform is to design, test and implement a long-term approach that ensures there is no discrimination in the provision of services and products for First Nations children and youth, including health and social services and education supports. Substantive equality and culturally appropriate interventions that respond to the unique needs of First Nations children and youth must be preserved when providing these services.

Next steps

Canada and the Parties continue to work on a final settlement agreement on long-term reform.

Immediate measures

On April 1, 2022, Canada started implementing a series of immediate measures as an early step toward the overall reform of the First Nations Child and Family Services program. A new funding mechanism is currently being used for the following components:

In January 2024, Canada also began providing the remaining funding agreed to in the Agreement-in-Principle. This funding is referenced as "top-ups" for the following 5 components:

Funding for capital assets

On November 16, 2021, the Canadian Human Rights Tribunal issued 2021 CHRT 41, which was amended on January 18, 2022. This decision contains orders for Canada to fund the purchase and construction of capital assets that are needed to support the delivery of child and family services on-reserve and in the Yukon, and for the delivery of services under Jordan's Principle to First Nations children on-reserve, in the Northwest Territories and in the Yukon. Funding includes ongoing operations and maintenance for the funded capital asset. The funding is provided at actual costs and can be accessed through a request process laid out in the Capital Assets Guide, and it is available to First Nations and First Nations Child and Family Services agencies.

Learn more:

New funding for housing on reserves to support prevention initiatives

In the Agreement-in-Principle on long-term reform, Canada has agreed to establish a $2 billion fund for First Nations to purchase, construct or renovate housing units in their communities in relation to the needs of First Nations children.

This is in addition to the $1.66 billion in housing investments that have been made since 2016 to address housing needs on reserves.

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