2025-26 Details on transfer payment programs

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2017-2018

Funding Details

• Listing in the Public Accounts:(S) Contributions related to the Canada Community-Building Fund (Keeping Canada's Economy and Jobs Growing Act)
• Name of program terms and conditions: Contributions to support the construction and maintenance of community infrastructure
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The Canada Community-Building Fund (CCBF), administer by Housing, Infrastructure and Communities Canada, provides permanent, long-term infrastructure funding to communities across Canada. A portion of the CCBF is allocated to on-reserve First Nations to support implementation of Other Community Infrastructure projects, ultimately contributing to sustainable, reliable community-led infrastructure and land management on reserve.
• Engagement of applicants and recipients in 2025-2026: In 2025-2026, the Department continued to participate in the Assembly of First Nations-led Joint Committee on Climate Action (JCCA), for which Environment and Climate Change Canada is the government lead. The JCCA promotes First Nations' full and effective participation in federal climate action, serving as a forum for First Nations advocates and federal officials to discuss climate change priorities and collaborate on policy. In 2025-2026 JCCA meetings participants discussed evolving climate and clean energy policy, emerging priorities, as well as regional initiatives and federal programs for adaptation and mitigation. Such activities help inform infrastructure projects funded by the Canada Community-Building Fund.

Departmental Results Framework

Link to departmental result(s):

• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Community Infrastructure

Results achieved:

The Canada Community-Building Fund (CCBF) provided $33.2 million to support sustainable reliable community-led infrastructure on reserve, including roads and bridges, energy systems, structural mitigation and fire protection infrastructure, connectivity, and cultural and recreation facilities. The funding supported 48 projects across the country, five of which were completed and 43 which are ongoing. The projects will directly benefit 43 First Nations communities and approximately 95,000 people, while indirect benefits are expected for 58 First Nations through projects implemented by Tribal Councils and National Indigenous Organizations.Since 2016-2017 and as of March 31, 2026, CCBF invested $363.4 million to support 831 projects, 516 of them completed and 315 ongoing. In the long term, these projects are expected to improve the quality of life and environment on reserve, contributing to safer, healthier, and more prosperous First Nations communities.

Evaluations and audits

Findings of audits completed in 2025-2026:

• An Audit of Elementary and Secondary Education and Education Facilities was completed in 2025-2026. Overall, the audit found elements of a management control framework were in place, including documented roles and responsibilities, national and regional communication channels, funding allocation processes, and performance frameworks. While these foundational elements were in place, several areas where management control practices and processes could be improved were identified. These included documenting coordination processes, formalizing the risk and control framework, reviewing and updating school prioritization rankings, explaining calculations for operations and maintenance, reviewing performance information profiles, and better demonstrating the impact of infrastructure investments on education outcomes. The audit resulted in six recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of Community Infrastructure (Housing On-Reserve, Education Facilities, Health Facilities, Other Community Infrastructure and Activities, Water and Wastewater Infrastructure) is expected to be completed by March 2029.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending reflects lower than anticipated expenditures for Contributions related to the Canada Community-Building Fund (Keeping Canada's Economy and Jobs Growing Act).

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2019-2020

Funding Details

• Listing in the Public Accounts: Contributions for emergency management assistance for activities on reserves
• Name of program terms and conditions: Contributions for Emergency Management Assistance for Activities on Reserves
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of the Emergency Management Assistance Program (EMAP) is to protect lives and maintain resilient, sustainable on-reserve First Nations communities and infrastructure through emergency management. Through the EMAP, ISC supports First Nations partners to prepare for, mitigate against, respond to and recover from emergency events that threaten the health, safety, and holistic well-being of on-reserve First Nations and other eligible communities, the most common being floods, fires, loss of essential services, severe weather, or failure of community infrastructure (i.e., winter roads, bridges, water sources, housing, etc.) due to natural disaster or accident.
  
  The department also provides financial assistance to First Nations for search and recovery activities based on compassionate grounds. In addition, the 2017-2018 the Building Back Better Strategy Guide was approved to increase the access and availability to culturally competent response and recovery support for on-reserve and other eligible First Nations partners.
• Engagement of applicants and recipients in 2025-2026: ISC continues to advance multilateral emergency management service agreements with First Nations and provincial and territorial governments. The Department monitors progress through the development of structured workplans, defined critical paths, and regular engagement at both technical and senior leadership tables, ensuring discussions proceed at the pace determined by First Nations partners. To support this work, engagement has occurred, and/or formal governance structures have been established in 92% of provinces and territories, with outreach ongoing in the remaining jurisdictions. Progress is tracked through formal negotiation tables where established, recurring bilateral and trilateral meetings, and documented milestones to clarify roles and responsibilities, and support First Nations-led emergency management, strengthening local resilience.
  
  The First Nations Advisory Committee continues to meet virtually on a monthly basis to ensure the committee members are regularly providing insights into ISC initiatives and co-developing initiatives. Additionally, the Assembly of First Nations and ISC co-led an in-person FNAC meeting in March 2026.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Emergency Management Assistance

Results achieved:

ISC's Emergency Management Assistance Branch continues to strengthen local emergency response capabilities in First Nations communities by supporting preparedness, mitigation, response, and recovery activities that reduce the impacts of emergencies on lives, infrastructure, and community well-being. Through timely management support and funding, First Nations partners are better equipped to respond to a range of emergency events, including floods, wildfires, severe weather, infrastructure failures, and disruptions to essential services. In 2025-2026, ISC provided over $686 million in funding for response, $168 million in funding for recovery, and $384,000 in funding for search and recovery. In addition, ISC provided $ 56,713,704.50 to support Preparedness and Mitigation activities, including funding under the following programs:

• Non-Structural Mitigation Program: $18,396,910.38
• FireSmart: $13,643,914.43
• Capacity Enhancement:  $24,672,879.69
• These investments are essential for protecting lives, maintaining essential services and critical infrastructure, supporting safe evacuations, and strengthening community resilience.

Evaluations and audits

Findings of audits completed in 2025-2026:

• In 2025-2026, the Office of the Auditor General completed the Follow-up on Programs for First Nations: Audit of Emergency Management in First Nations Communities, to assess progress in implementing recommendations from its 2022 audit. The 2025 follow-up report found that fewer agreements were in place to support access to emergency services for First Nations communities than in 2022. ISC accepted the three recommendations and developed a detailed action plan to address the findings.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• The Evaluation of the Emergency Management Assistance program (EMAP) was completed in 2025-2026 and assessed EMAP from 2017 to 2023, as well as the Indigenous Community Support Fund from 2020 to 2023. The evaluation confirmed the continued need for the program and identified opportunities to strengthen preparedness and mitigation funding, improve coordination with federal, provincial, territorial, and First Nations partners, address jurisdictional challenges, enhance Emergency Management Coordinator supports. The evaluation also found that proposal-based funding and eligibility criteria limited First Nations' ability to address emergency management priorities, while complex reimbursement and reporting requirements created administrative burden and payment delays. The evaluation recommended improving funding approaches, strengthening coordination and Emergency Management Coordinator supports, and improving the clarity and efficiency of EMAP funding processes.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an incremental funding provided through Supplementary Estimates for all-hazard emergency management in First Nation communities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2025-2026

Funding Details

• Listing in the Public Accounts: Contributions for First Nations and Inuit Health Infrastructure Support
• Name of program terms and conditions: Health Infrastructure Support Authority (HISA)
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of this transfer payment program is to support First Nations and Inuit capacity-enhancing initiatives to assume greater control over the design, delivery and management of health services and health infrastructure in their communities. This includes continuing to provide resources and supports for First Nations and Inuit to develop and implement their own health services plans and move into more flexible funding arrangements to address community needs and priorities. Health Systems Support Program elements include Community Health Planning, the Health Services Integration Fund, the Health Transformation initiative, British Columbia Tripartite Health Governance, Accreditation, Health Human Resources, and funding for Indigenous-led health surveys. It also includes targeted initiatives, such as the work for distinctions-based Indigenous health legislation and policy approaches and distinctions-based collaboration with Indigenous Peoples to address anti-Indigenous racism in Canada's health systems.
• Engagement of applicants and recipients in 2025-2026: ISC maintained ongoing engagement with Indigenous partners to inform health programming, address systemic barriers, and advance health transformation. Addressing Anti-Indigenous Racism (AAIR) engaged Métis leadership through quarterly meetings with Métis organizations, including Métis Nation British Columbia (MNBC), Métis Nation-Saskatchewan (MNS), Otipemisiwak Métis Government (OMG), Manitoba Métis Federation (MMF), and Métis Nation of Ontario (MNO). AAIR also engaged national Indigenous health professional organizations through its Advisory Circle and other targeted discussions, while First Nations partners were engaged through regional mechanisms.
  
  For Health Transformation, ISC continued to provide oversight and guidance to the First Nations Health Authority in British Columbia through formal bilateral and tripartite governance tables, supporting ongoing collaboration and progress toward greater First Nations control of health services.
  
  No additional engagement activities were reported for the Indigenous Health Equity Fund for 2025-2026.

Departmental Results Framework

Link to departmental result(s):

• Indigenous Peoples are physically well
• Indigenous Peoples are mentally well
• Indigenous Peoples have access to quality federally funded health services
• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Health Systems Support
• Community Infrastructure
• Primary Health Care

Results achieved:

ISC advanced Indigenous health equity, self-determination, and health system transformation through targeted investments and partnerships with First Nations, Inuit, and Métis communities and organizations. The Department supported 46 Indigenous Health System Navigators and six Patient Advocates across Canada, helping Indigenous patients and families navigate health systems, access culturally safe care, and address barriers related to racism and discrimination. ISC also continued to fund Indigenous health professional organizations to advance Indigenous leadership, cultural safety, anti-racism, and the implementation of Joyce's Principle.

Through the Indigenous Health Equity Fund, ISC provided flexible funding that enabled First Nations, Inuit, and Métis communities to identify and respond to their own health priorities, including primary care, mental wellness, healthy living, home care, and health infrastructure. Community implementation plans and year-end reports demonstrated the use of this funding to deliver locally tailored health initiatives.

ISC also supported Health Transformation partnerships and initiatives, with six projects in Manitoba, Ontario, Quebec, and Nova Scotia progressing through various stages of health service transfer. Progress included the establishment of the Southern Chiefs' Organization Health Entity, representing 33 First Nations, the signing of two Agreements-in-Principle, and the implementation of three Memoranda of Understanding. Overall, Health Transformation activities, including those led through the BC First Nations Health Authority, covered 361 First Nation communities, representing approximately 57% of First Nation communities in Canada and 993,000 individuals.

In addition, ISC continued to support quality improvement and culturally safe service delivery by funding 159 community health centres and five nursing stations toward accreditation and advancing accreditation planning for 50 ISC-managed nursing stations. Through the Aboriginal Health Human Resources Initiative, the Department also supported certification and training for community-based workers and health managers to improve the quality and consistency of health services delivered in First Nations and Inuit communities.

Evaluations and audits

Findings of audits completed in 2025-2026:

• In 2025-2026, the Office of the Auditor General completed a Follow-up on Programs for First Nations: Access to Health Services for Remote First Nations Communities (2015) to assess progress in implementing recommendations from its 2015 audit. The 2025 follow-up report found that the Department made progress in areas such as mandatory nurse training and health emergency preparedness, while further work is needed to improve access to comparable health services and address nursing shortages. ISC accepted the five recommendations and developed a detailed action plan to address the findings.
• In 2025, the Office of the Auditor General completed a Follow-up on Programs for First Nations: Audit of Oral Health Programs for First Nations and Inuit (2017). The 2025 follow-up report found that further work is needed to assess the impact of oral health programs and strengthen processes for updating covered services under the Non-Insured Health Benefits Program. ISC accepted the five recommendations and developed a detailed action plan to address the findings.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the ISC-British Columbia Tripartite and Health Transformation Role in Supporting New First Nations Health Governance Structures is expected to be completed in November 2027.
• The Cluster Evaluation of Health Systems Support for First Nations and Inuit (Health Planning, Quality Management and Systems Integration and Health Human Resources) is expected to be completed in March 2029.
• The Cluster Evaluation of Community Infrastructure is expected to be completed in March 2029.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding:

• to the New Fiscal Relationship Grant due to higher than anticipated expenditures; and
• to meet departmental priorities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2021-2022

Funding Details

• Listing in the Public Accounts: Contributions for First Nations and Inuit Primary Health Care
• Name of program terms and conditions: Primary Health Care Authority
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The Primary Health Care activity is a coordinated system of health services required to maintain health and treat illness and is the first point of individual contact by First Nations and Inuit with the health system at the reserve or community level. The Primary Health Care Authority funds a suite of programs, services and strategies provided primarily to First Nations and Inuit individuals, families, and communities living on reserve or in Inuit communities and encompasses health promotion and disease prevention programs to improve health outcomes and reduce health risks; public health protection, including surveillance, to prevent and/or mitigate human health risks associated with communicable diseases and exposure to environmental hazards; and primary care where individuals are provided diagnostic, curative, rehabilitative, supportive, palliative or end-of-life care, and referral services.
• Engagement of applicants and recipients in 2025-2026: ISC engaged with regional offices and First Nations communities to update the Healthy Child Development data collection instrument and strengthen future performance measurement. ISC also performed a secretariat function for the Indigenous Women's Well-being Advisory Committee (IWAC), which meets quarterly to provide advice, guidance, and direction to the Government of Canada on health and wellness issues affecting First Nations, Inuit, and Métis people across the lifespan. The Committee provides intersectional advice, with a focus on gender, identity, and/or sexuality, and supports the co-development of policy and service delivery options.
  
  For Home, Long-Term and Continuing Care, ISC continued to review engagement summary reports to better understand the long-term and continuing care needs and concerns identified by Métis individuals and communities across the country. While full implementation of a co-developed Long-Term and Continuing Care Framework is no longer planned due to shifting priorities, the First Nations and Inuit Home and Community Care Program continued its collaboration with the Assembly of First Nations and Indigenous program partners to advance the national Circle of Practice. The program also continued engaging front-line service providers through knowledge-sharing activities focused on high-quality and culturally adapted palliative and end-of-life care and lower-limb preservation. Regional offices continued to engage with recipients to support opt-in to New Fiscal Relationship grants and service transfer.
  
  To support the Mental Wellness Program's most recent evaluation in 2025-2026, ISC's evaluation team established an evaluation advisory group that included Indigenous partners. A commitment was made to fund a Indigenous-led study as a second phase of the evaluation. These activities supported continued Indigenous participation in the evaluation process and development of ISC's Mental Wellness program.
  
  The Jordan's Principle Operational Committee, which includes First Nations partners, met virtually six times during 2025-2026. These meetings provided an ongoing forum for engagement on the transformation of the appeals model, operational updates, backlog reduction measures, and broader data and trends related to Jordan's Principle, while also providing opportunities for ISC and partners to discuss and address operational questions.
  
  For the Inuit Child First Initiative, co-development of a long-term approach was delayed following the February 2025 Operational Bulletin and a late funding decision for 2025-2026, which created operational pressures and tensions for Inuit partners. Co-development resumed in September 2025, with ISC regularly engaging Inuit Tapiriit Kanatami (ITK) and Inuit Treaty Organizations (ITOs) to advance the National Framework. A separate Operations Table was also established between ISC, ITK, and ITOs to identify service delivery issues and develop practical solutions. ISC further provided regular updates on the Inuit Child First Initiative at the monthly National Inuit Committee on Health meetings, including the National Inuit Committee on Health Senior Management Committee meeting in May 2025.

Departmental Results Framework

Link to departmental results:

• Indigenous Peoples are physically well
• Indigenous Peoples are mentally well
• Indigenous Peoples have access to quality federally funded health services

Link to the department's Program Inventory:

• Public Health Promotion and Disease Prevention
• Jordan's Principle and the Inuit Child First Initiative
• Primary Health Care
• Home and Long-Term Care

Results achieved:

ISC supported improved access to culturally appropriate, community-based health promotion, prevention, primary care, and continuing care services for First Nations and Inuit communities. Through Healthy Living, 100% of the 113 eligible communities received funding for Nutrition North Canada Nutrition Education Initiatives, with 31,112 participants taking part in activities promoting healthy eating, food skills, traditional food preparation, and access to healthy foods. Among recipients that submitted annual reports, 93% reported increased knowledge and skills related to healthy food choices and preparation.

Mental Wellness programming continued to be implemented nationally and regionally using Indigenous-led frameworks, with Budget 2024 investments renewed for 2026-2027 and 2027-2028. ISC also supported Healthy Child Development through Maternal and Child Health home visiting and case management services. Among the 248 communities reporting reach data, 5,820 participants received home visits and 4,048 received case management, with some regions integrating Fetal Alcohol Spectrum Disorder-related activities into home visiting services.

Through the First Nations and Inuit Home and Community Care program, ISC supported chronic disease management and continuing education for health professionals. In partnership with Health Canada, ISC funded eight Indigenous community-led palliative care projects-four new and four ongoing-to improve culturally appropriate palliative and end-of-life care, data collection, provider and caregiver skills, and community awareness. The Department also continued the Lower Limb Preservation Knowledge Sharing Circle to promote evidence-informed and Indigenous approaches to wound healing, diabetes management, and amputation prevention. In collaboration with Indigenous partners, work also continued on distinctions-based Long-Term and Continuing Care Frameworks.

Clinical and Client Care maintained expanded multidisciplinary health teams in remote and isolated First Nations communities, including 29 transferred communities, following the final year of Budget 2021 expansion funding. Budget 2024 investments also enabled 79 communities to hire and train security personnel to support safer health service delivery.

Access to oral health services continued to expand, with Community Oral Health Services available in 331 communities in 2025-2026, supporting improved access to primary and secondary preventive, emergency, treatment and referral services contributing to better oral health outcomes.

ISC continued to support Indigenous-led communicable disease prevention and control. The Department funded Inuit-led tuberculosis elimination efforts across Inuit Nunangat, with renewed funding of $27 million over five years beginning in 2026-2027. In addition, ISC funded 18 ongoing multi-year projects and 23 new initiatives, in 2025-2026 led by First Nations and Inuit organizations to support HIV testing, culturally safe care, and harm reduction.

ISC continued to provide access to products, services, and supports to First Nations and Inuit children through Jordan's Principle and the Inuit Child First Initiative. In 2025-2026, 65,376 requests were approved through Jordan's Principle, encompassing 1,744,635 products, services, and supports, representing $855.45 million in approved funds. The Inuit Child First Initiative approved 5,445 requests in 2025-2026, encompassing 30,613 products, services, and supports, representing $44.85 million in approved funds.

Evaluations and audits

Findings of audits completed in 2025-2026:

• An internal audit of Jordan's Principle was completed in May 2025 and found that the implementation of Jordan's Principle, based on the Back-to-Basics approach, was unsustainable due to increasing demand, unclear eligibility criteria for expenditures, and an evolving scope of approved products and services, all within the constraints of departmental human and financial resources. To address these challenges, the audit identified several opportunities to improve the Management Control Framework. These improvements could support long-term sustainability, reduce processing errors, and limit unnecessary requests by streamlining access to supports. Areas for improvement included establishing a risk-based management control framework and implementing solutions to increase processing efficiencies. The audit resulted in four recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• In 2025-2026, the Office of the Auditor General completed a Follow-up on Programs for First Nations: Access to Health Services for Remote First Nations Communities (2015) to assess progress in implementing recommendations from its 2015 audit. The 2025 follow-up report found that the Department made progress in areas such as mandatory nurse training and health emergency preparedness, while further work is needed to improve access to comparable health services and address nursing shortages. ISC accepted the five recommendations and developed a detailed action plan to address the findings.
• An Audit of the Clinical and Client Care Program is underway and expected to be completed during 2026-2027.

Findings of evaluations completed in 2025-2026:

• The Evaluation of the Inuit Child First Initiative (Inuit CFI) was completed in 2025-2026 and assessed the program over the 2018-2019 to 2022-2023 period. The evaluation found a need to improve timely access to educational, social, and health products, services, and supports for Inuit children and concluded that the Inuit CFI model was sufficiently flexible to respond to the diverse needs and unique circumstances of Inuit children. The evaluation also found that Inuit CFI contributed to increased access to products, services, and supports and generated positive benefits for Inuit children, families, and communities, including 2SLGBTQIA+ youth. However, increasing demand contributed to backlogs and delays in processing requests, alongside staffing and communication challenges. The evaluation recommended improving operational processes and efficiencies to address backlogs and delays and updating the Initiative's performance measurement strategy to better measure and report on outcomes.
• ISC's Mental Wellness Program evaluation was completed in 2025-2026 the evaluation focused on the period of 2015-2016 to 2020-2021. Findings of this Evaluation indicated that the program remains highly relevant and effective, though available funding does not meet the need or demand for programming. Program performance data showed that access to and uptake of ISC funded services have greatly increased over time, including through the Indian Residential Schools Resolution Health Support Program, substance use treatment centres, Mental Wellness Teams, and wraparound supports at opioid agonist therapy sites. Strengths of the program include flexible funding and support for self-determination. Gaps and challenges experienced by the program include limited sustainable funding and lack of growth on investments, lack of dedicated funding for Indigenous children and youth mental wellness, need for capital and infrastructure investments, and impacts of the COVID-19 pandemic on mental wellness in Indigenous communities and service delivery.
• The Cluster Evaluation of the Home and Long-Term Care Program is expected to be completed in November 2027.
• The Evaluation of Jordan's Principle is expected to be completed in November 2027.
• The Cluster Evaluation of Healthy Living and Healthy Child Development is expected to be completed in March 2028.
• The Evaluation of the Mental Wellness Program is planned for 2029-2030 and is expected to be completed by March 2030.
• The Evaluation of Communicable Disease Control and Management is expected to be completed in January 2027.
• The Evaluation of the Environmental Public Health Program is expected to be completed in March 2030.
• The Cluster Evaluation of Primary Health Care (Clinical and Client Care, e-Health Infrastructure and Community Oral Health Services) is expected to be completed in March 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an incremental funding provided through Supplementary Estimates for:
  • medical travel costs in Nunavut and Northwest Territories; and
  • the continued implementation of the Inuit Child First Initiative.
• an allocation of funding:
  • to the New Fiscal Relationship grant due to higher than anticipated expenditures; and
  • to meet departmental priorities.
• the deferral of funding to future years for:
  • the continued implementation of Jordan's Principle; and
  • the Inuit Child First Initiative.

These funds could not be spent in 2025-2026 and are expected to be reprofiled to future years when they will be available for the intended purposes. The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an incremental funding provided through Supplementary Estimates for all-hazard emergency management in First Nation communities).

Note: The 2024-2025 actual spending of this transfer payment in the 2024-2025 Public Accounts is $3,513,282,940.28. The difference of $281,697.00 between the 2024-2025 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2019-2020

Funding Details

• Listing in the Public Accounts: Contributions for Supplementary Health Benefits (Non-Insured Health Benefits Program)
• Name of program terms and conditions: Contributions for Supplementary Health Benefits (Non-Insured Health Benefits Program) 
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: ISC's Supplementary Health Benefits (also known as Non-Insured Health Benefits) Program provides registered First Nations and recognized Inuit residents in Canada with coverage for a range of medically necessary health-related goods and services which are not otherwise available to them through other private plans or provincial or territorial health or social programs. Program benefits include prescription and over-the-counter medications, dental and vision care, medical supplies and equipment, mental health counselling, and transportation to access medically required health services that are not available locally. Some benefits are delivered through contribution agreements with First Nations and Inuit organizations or with the territorial governments in Nunavut and Northwest Territories.
• Engagement of applicants and recipients in 2025-2026: The Non-Insured Health Benefits Program continued to engage with First Nation and Inuit partners in 2025-2026 to share information and ensure the program is responsive to the needs of its clients.

Departmental Results Framework

Link to departmental result(s):

• Indigenous Peoples are physically well
• Indigenous Peoples are mentally well
• Indigenous Peoples have access to quality federally funded health services

Link to the department's Program Inventory:

• Supplementary Health Benefits

Results achieved:

ISC continued to conduct the Joint Review of the Non‑Insured Health Benefits Program with the Assembly of First Nations in 2025-2026, with comprehensive reviews completed for five benefit areas to date. Implementation of recommendations emerging from the Joint Review is underway, including changes that improve client access to benefits and streamline service delivery to better respond to client needs. The medical transportation benefit review is ongoing. ISC also continued to work collaboratively with the Inuit Tapiriit Kanatami on Inuit specific priorities.

Evaluations and audits

Findings of audits completed in 2025-2026:

• In 2025-2026, the Office of the Auditor General completed a Follow-up on Programs for First Nations: Audit of Oral Health Programs for First Nations and Inuit (2017). The 2025 follow-up report found that further work is needed to assess the impact of oral health programs and strengthen processes for updating covered services under the Non-Insured Health Benefits Program. ISC accepted the five recommendations and developed a detailed action plan to address the findings.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Non-Insured Health (Supplementary) Benefits Program is  expected to be completed in November 2026.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects incremental funding provided through Supplementary Estimates for the Non-Insured Health Benefits Program.

Timeframe

• Start date: 2021-2022
• End date: 2025-2026; Amended to 2026-2027 for the Community Development Wrap-Around Initiative (CDWAI)
• Fiscal year for terms and conditions: 2021-2022; Amended in 2022-2023 to include CDWAI under this authority

Funding Details

• Listing in the Public Accounts: Contributions for Pathways to Safe Indigenous Communities Initiative
• Name of program terms and conditions: Pathways to Safe Indigenous Communities Program
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: This transfer payment program, a five-year initiative starting in 2021-2022, funds services for Indigenous communities, women, children, and families across Canada - including First Nations, Inuit, Métis, urban, and Two-Spirit, Lesbian, Gay, Bisexual, Transgender, Queer or Questioning, Intersex, and Asexual + (2SLGBTQI+) people.
  
  The intention of the program is to assist Indigenous individuals and communities to:
  • Support the development and delivery of culturally relevant and community and organization identity specific safety and well-being initiatives;
  • Address community safety and well-being needs that support reconciliation, resiliency, and capacity of Indigenous communities and organizations and their members, contribute to and promote a sense of belonging of community members, address intergenerational trauma, address systemic barriers and biases within existing systems, recognize the impact of lived experiences; and,
  • Support Indigenous designed interventions and Indigenous definitions of safe, secure and resilient communities.
• Engagement of applicants and recipients in 2025-2026: Pathways to Safe Indigenous Communities Initiative program officials continued to regularly engage with funding recipients throughout 2025-26 to support projects and better understand the impacts of Pathways Initiative funding in meeting the unique needs of communities.

Departmental Results Framework

Link to departmental results:

• Indigenous Peoples are culturally safe and socially well
• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Safety and Prevention Services
• Indigenous Governance and Capacity Supports

Results achieved:

The Pathways Initiative provided approximately $36 million in funding for 57 community safety and well-being projects. Recipients included 30 First Nations organizations and communities, nine Inuit organizations, seven Métis organizations and communities, and 11 Indigenous urban organizations' projects. These projects supported a variety of First Nations, Inuit, and Métis-led programs and activities, including peacekeeping and safety patrol teams across nine communities that provided mental health interventions, secure emergency transportation, and training to assist with search and rescue operations. Projects also included the creation of a Family Systems Navigator to support Indigenous women fleeing partner violence, as well as a culturally relevant safety and well-being program to support for Indigenous women, girls, and 2SLGBTQI+ people in urban centres.

The Pathways Initiative was approved as a time-limited program (2021-2022 to 2025-2026) to support Indigenous-led safety and wellness projects, and officially sunset March 31, 2026. ISC maintains ongoing engagement with community representatives and federal partners and continues to discuss community safety priorities and program transitions.

Through the Community Development Wrap Around Initiative (CDWAI), ISC continued to provide wrap-around supports to 22 participating First Nations communities advancing their self-identified community development priorities. The wrap-around supports provided resulted in better coordination of partners and programs, innovative collaboration in overcoming barriers to project implementation, and the removal of administrative reporting burdens on participating First Nations. $25.8 million was provided to participating First Nations communities to priorities and project completion, which supported the advancement of 64 community development projects and activities across 13 key areas, and the creation of 82 full-time and part-time jobs in areas such as project management, Band administration support, youth capacity development, and skilled trades capacity. Additionally, CDWAI enabled the leveraging of partnership investments to support community development projects, totaling $66.5 million. 

Evaluations and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship initiatives in 2025-2026 which is expected to be completed in May 2026.
• An Audit of the Family Violence Prevention Program is planned and expected to be completed by February 2028.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of the Family Violence Prevention Program and the Pathways to Safe Indigenous Communities Initiative is expected to be completed in September 2026.
• The Evaluation of the Indigenous Governance and Capacity Program is expected to be completed in March 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an allocation funding to meet departmental priorities; and
• unused funds at year-end will return to the fiscal framework.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2014-2015

Funding Details

• Listing in the Public Accounts: Contributions for the purpose of consultation and policy development
• Name of program terms and conditions: Contributions for the Purpose of Consultation and Policy Development
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The program is intended to be a vehicle for a wide range of engagements between the department and Indigenous Peoples for the development and implementation of departmental policy and programming.
• Engagement of applicants and recipients in 2025-2026: No engagement activities were completed in 2025-26 for the Indigenous Governance and Capacity Program. No engagement activities are currently planned for this program.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination
• Indigenous communities are progressing in their business and economic growth
• Indigenous Peoples are culturally safe and socially well

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports
• Community Economic Development
• Child and Family Services

Results achieved:

ISC reviewed and applied previously funded research, analysis, and partner-developed advice from expert Indigenous organizations to support policy development related to potential reform of the Band Support Funding program, however, no new research reports were commissioned during the reporting period, As a result, ISC's policy renewal work was informed by expert analysis and by evidence of the governance and administrative challenges experienced by First Nations governments in communities.

ISC continued to draw on previous technical collaboration and partner guidance to inform program and policy reform related to the redesign of program supports for core First Nations governance, however, no new co-development activities were funded during this reporting period.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of Litigation Management was completed in 2025-2026. Overall, the audit found that the current litigation management approach enhances sector flexibility and accountability, with several key processes and tools, including Litigation Management Oversight Directorate (LMOD) Toolkit and advisory committees. While collaboration with Justice Canada (JUS) is formalized, improvements in clarity, governance, and oversight are necessary. Roles and responsibilities need to be better defined, especially concerning strategic analysis and litigation prevention.  Additionally, enhancing financial reporting for effective expenditure management and collaboration with external entities is crucial. Strong governance and clear accountabilities are essential for maintaining efficient and responsive litigation management aligned with reconciliation objectives. The audit resulted in seven recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• An Audit of the First Nations Child and Family Services Program is underway and expected to be completed by June 2027.

Findings of evaluations completed in 2025-26:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Indigenous Governance and Capacity Program  is expected to be completed in March 2027.
• The Evaluation of Individual Affairs is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation funding to meet departmental priorities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2022-2023

Funding Details

• Listing in the Public Accounts: Contributions to First Nations for the management of contaminated sites
• Name of program terms and conditions: Contributions to First Nations for the Management of Contaminated Sites
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The objective of this contribution program is to ensure the removal of known contamination from National Contaminated Sites Classification System Class 1, Class 2, and Class 3 contaminated sites for which a Crown liability has been established and documented.
  
  The transfer payment plan also includes funding for the First Nations Solid Waste Management Initiative to develop sustainable solid waste management solutions on reserve.
• Engagement of applicants and recipients in 2025-2026: ISC officials consulted with First Nations funding recipients primarily through the work of regional environmental officers, who engage directly with recipients throughout the project lifecycle. This includes supporting project planning, reviewing funding applications, providing technical and program guidance, monitoring project implementation, reviewing progress reports, and addressing project-specific issues as they arise. Regional environmental officers also work directly with First Nations communities to identify priorities and support the successful delivery of contaminated sites projects.
  
  Additionally, the Department worked with the First Nation-led Joint Table on Waste Management to identify legislative, regulatory, programming, and policy options to address waste management and unauthorized dumping issues on reserve lands. Departmental officials also engage regularly with a National Advisory Committee on program implementation issues and worked with the same committee to host a national waste management conference to engage First Nations from across Canada on Waste Management issues.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Communities and The Environment

Results achieved:

The Contaminated Sites On-Reserve program continued to support contaminated sites management activities on reserve lands, including environmental site assessments and remediation and risk-management activities. In 2025-2026, the First Nations Waste Management Initiative expended $72.9 million intended for Waste Initiative projects, plus an additional $51 million intended for operations and maintenance of waste infrastructure and services. This funding supported First Nations communities in carrying out infrastructure construction and equipment purchases, implementing diversion programs, conducting studies and assessments, and paying operator salaries, tipping fees and fuel, in addition to providing waste operator training and developing community awareness initiatives.

Addressing contaminated sites on reserve resulted in reduced risk to human health and the environment from contaminants such as arsenic, lead, and petroleum hydrocarbons, and improved conditions for the safe use of lands. Approximately $112 million in contaminated sites program funding was invested in 2025-2026, enabling First Nation partners to undertake contaminated sites management activities, including 145 site assessments, remediation activities at 140 sites, and 131 site closures across the country. Expenditures and activities are documented and monitored using financial and performance data, with annual reporting to Treasury Board to assess progress and support accountability.

In 2025-26, the percentage of First Nations communities with adequate solid waste management systems increased from 58.9% in 2024-2025 to 65% as a result of a net increase of 51 additional First Nations communities having adequate waste management systems in 2025-2026. Additionally, 36 First Nations communities established diversion programs that did not previously have a diversion program in place.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of the Communities and the Environment Program (Lands Management Sub-programs, Contaminated Sites On-Reserve, First Nations Solid Waste Initiative) is expected to be completed in March 2029

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending reflects funding allocated to meet departmental priorities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2019-2020

Funding Details

• Listing in the Public Accounts: Contributions to improve the safety and security of Indigenous women, children, families and 2SLGBTQI+ People
• Name of program terms and conditions: Contributions to improve the safety and security of Indigenous women, children, families and 2SLGBTQQIA+ people
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The Family Violence Prevention aims to fund protection and prevention services for Indigenous women, children and families across Canada. This includes: First Nations (on and off reserve); Inuit; Métis; urban; two-spirit, lesbian, gay, bisexual, transgender, queer, questioning, intersex and asexual + (2SLGBTQQIA+) people. The primary objective is to support Indigenous women, children, families, and 2SLGBTQI+ people living across Canada with family violence shelter services and transition homes through funding to core operations. The secondary objective is to support family violence prevention activities through funding to Indigenous communities and organizations, as directed within the program's Terms and Conditions. Third, the program supports Métis engagement on assessing shelter needs and community violence prevention activities focused on Métis women, girls and 2SLGBTQI+ people.
• Engagement of applicants and recipients in 2025-2026: The Family Violence Prevention Program (FVPP) consults with recipients through its ongoing process of assessing sustainable funding needs for emergency and second-stage shelters for Indigenous women, children, families, and 2SLGBTQIA+ escaping violence. In 2025-2026, the Program organized and conducted 12 key-informant interviews with emergency and second stage shelter directors across Canada to inform the development of the new funding formula. A front-end communication piece was prepared for distribution along with a question guide, which was developed in tandem with the National Indigenous Circle Against Family Violence.
  
  Additionally, FVPP continues to engage with key partners to deliver the Indigenous Shelter and Transitional Housing Initiative alongside Canada Mortgage and Housing Corporation through the Indigenous and Inuit Steering Committees.

Departmental Results Framework

Link to departmental result:

• Indigenous Peoples are culturally safe and socially well

Link to the department's Program Inventory:

• Safety and Prevention Services

Results achieved:

Through the Indigenous Shelter and Transitional Housing Initiative, 80 projects were selected and had funding allocated by the Canada Mortgage and Housing Corporation (CMHC), including 38 emergency shelters and 42 transition homes. The CMHC and the Family Violence Prevention Program (FVPP) supported selected projects through pre-development and start-up funding, and the FVPP continued to support regions and proponents to address operational and additional funding needs.

By March 2026, 56 projects continued to be monitored for completion, including nine completed with minor or missing finishings, 25 under construction, and 22 that had received advanced funding from CMHC. Selected proponents include First Nations, Inuit and Métis communities and Indigenous organizations, including Nunavut Tunngavik Incorporated and the National Indigenous Circle Against Family Violence, supporting Indigenous involvement in the development of emergency shelters and transition homes. FVPP continued to work with partners to support project viability, including Nunavut Tunngavik Incorporated, the Government of Nunavut and CMHC to support the viability of emergency and second-stage shelter projects in the North which require enhanced support.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• An Office of the Auditor General Performance audit on reporting on the Missing and Murdered Indigenous Women and Girls: Reporting on the Calls for Justice is expected to be tabled by March 2027.
• An Audit of the Family Violence Prevention Program is planned and expected to be completed by February 2028.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of the Family Violence Prevention Program and the Pathways to Safe Indigenous Communities Initiative is expected to be completed in September 2026.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects a transfer to the Department of Crown-Indigenous Relations and Northern Affairs to support family violence prevention investments for self-governing Indigenous governments in the Yukon.

Note: The 2024-2025 actual spending of this transfer payment in the 2024-2025 Public Accounts is $152,095,417.16. The difference of $196,470.00 between the 2024-2025 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: 1994
• End date: Ongoing
• Fiscal year for terms and conditions: 2022-2023

Funding Details

• Listing in the Public Accounts: Contributions to Indian bands for registration administration
• Name of program terms and conditions: Contributions to Indian Bands for Registration Administration
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: This transfer payment program enables Indian Bands or their Tribal Councils to facilitate the administration of the Indian Registration System and maintenance of Band Lists and increase the adoption of the Secure Certificate of Indian Status at the community level. The transfer payments will provide for in-person application support resulting in entitled persons gaining access to benefits, and an up to date and accurate Indian Register for the department.
• Engagement of applicants and recipients in 2025-2026: ISC supported for First Nations registration administration by providing regional offices with compensation allocations for Registration Administrators, developing a Business Management Regime to improve funding oversight, and beginning training on the Digital Application Solution for Registration Administrators. Funding for First Nations registration administration increased by $70,000 to reflect growth in the registered population, helping communities maintain registration services.  These efforts enhanced the Department's capacity to support timely, consistent, and sustainable registration services for First Nations communities.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports

Results achieved:

ISC continued to improve access to registration and Secure Certificate of Indian Status (SCIS) services by processing registration and SCIS applications through both mail-in and trusted source channels, including Indian Registration Administrators. During the year, 33,449 individuals were added to the Indian Register, bringing the total registered population to 1,147,204, while the number of individuals holding an active SCIS card continued to increase, improving access to benefits, programs, and services available to registered First Nations individuals. The Department also processed 51% of registration applications within its six-month service standard, supporting more timely access to registration services for members of more than 523 First Nations.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship initiatives in 2025-2026 which is expected to be completed in May 2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of Individual Affairs is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding to meet departmental priorities.

Note: The 2025-2026 actual spending of this transfer payment in the 2025-2026 Public Accounts is $6,014,560.45.  The difference of $938.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: 1991
• End date: Ongoing
• Fiscal year for terms and conditions: 2022-2023

Funding Details

• Listing in the Public Accounts: Contributions to provide children, youth, young adults, families and communities with prevention and protection services
• Name of program terms and conditions: FNCFS Terms and Conditions: Contributions to provide children, youth, young adults, families and communities, with prevention and protection services
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The transfer payment program aims to improve the safety and wellbeing of First Nations children and families by providing funding to support the delivery of holistic and culturally appropriate prevention and protection services. Eligible recipients deliver prevention and protection services for children and families ordinarily resident on reserve or in the Yukon.
  
  The program provides funding for post-majority support services for youth and young adults aging out of the child welfare system. Services account for First Nations' unique cultural, historical and geographical strengths, needs and circumstances, and are provided in a manner that accounts for the best interest of the child, as defined by First Nations.
• Engagement of applicants and recipients in 2025-2026: Pursuant to the 2025 Canadian Human Rights Tribunal 80 order, ISC engaged in sessions with national and regional First Nations leadership to move forward on a long-term program reform. ISC continued to work closely with parties and engage regional First Nation partners in Alberta, the Atlantic region, and Yukon territory to advance long-term reform alongside First Nations across the country. ISC also conducted focused engagement sessions with Ontario First Nations and First Nations Child and Family Services (FNCFS) agencies to prepare for the May 2026 effective date of the Ontario Final Agreement to reform the FNCFS Program.

Departmental Results Framework

Link to departmental results:

• Indigenous Peoples are culturally safe and socially well

Link to the department's Program Inventory:

• Child and Family Services

Results achieved:

ISC continued to prioritize the long-term reform of the First Nations Child and Family Services (FNCFS) Program. Guided by the mandate to implement Canadian Human Rights Tribunal (CHRT) orders, the Department focused on transitioning toward culturally appropriate, child-centered, and community-directed care. On March 30, 2026, the CHRT formally approved the landmark, nine-year, $8.5 billion agreement specific to Ontario. This historic agreement, designed to shift decision-making authority back to First Nations communities, was signed by Canada, the Chiefs of Ontario, and the Nishnawbe Aski Nation.

ISC worked with National and Regional Indigenous Organizations to co-develop the broader, long-term reform of the FNCFS program, while advancing targeted bilateral discussions with Regional First Nations Organizations.

To support the ongoing implementation of CHRT orders under the existing funding model, the Department:

• Updated the FNCFS program's Terms and Conditions.
• Issued clear, updated financial guidance to partners.
• Efficiently processed ongoing funding claims to ensure no service disruptions.

To help keep families together safely, ISC continued to prioritize and fund vital prevention services under the FNCFS program.

Evaluation and audits

Findings of audits completed in 2025-2026:

• In 2025-2026, the Office of the Auditor General completed a Follow-up on Programs for First Nations: Access to Health Services for Remote First Nations Communities (2015) to assess progress in implementing recommendations from its 2015 audit. The 2025 follow-up report found that the Department made progress in areas such as mandatory nurse training and health emergency preparedness, while further work is needed to improve access to comparable health services and address nursing shortages. ISC accepted the five recommendations and developed a detailed action plan to address the findings.
• An Audit of the First Nations Child and Family Services Program is underway and expected to be completed by June 2027.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-26.
• The Evaluation of the First Nations Child and Family Services Program is expected to be completed in March 2028.
• The Evaluation of the Implementation of ISC supports to the Act Respecting First Nations, Inuit, and Métis children, youth and families is expected to be completed in July 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an incremental funding provided through Supplementary Estimates for maintaining and advancing the reforms to the First Nations Child and Family Services program;
• an allocation of funding to Grants to support child and family services coordination agreements and related fiscal arrangements; and
• unused funds at year-end will return to the fiscal framework for the First Nations Child and Family Services program.

Note: The 2024-2025 actual spending of this transfer payment in the 2024-2025 Public Accounts is $3,886,190,381.20. The difference of $421,904.00 between the 2024-2025 Public Accounts and DRR is due to the losses in transfer payments.

The 2025-2026 actual spending of this transfer payment in the 2025-2026 Public Accounts is $3,724,728,183.35. The difference of $150,310.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2023-2024

Funding Details

• Listing in the Public Accounts: Contributions to support Indigenous governments and institutions, and to build strong governance
• Name of program terms and conditions: Contributions to support Indigenous governments and institutions, and to build strong governance
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of this transfer payment is to facilitate capacity development in the First Nations and Inuit elected leadership and entities that administer aggregate services and program delivery on behalf of or to First Nations and Inuit governments and communities. The specific objectives are:
  • To enable First Nation, Inuit and Innu employers to compete effectively in attracting and retaining the qualified staff required to manage and deliver programs and services;
  • To enable Tribal Councils to develop the capacity of their member First Nations, as well as provide aggregated program and service delivery as agreed to by their member First Nations;
  • To support First Nations Fiscal Management Act Institutions in providing First Nations with the requisite resources, tools and mechanisms to support good government and to enhance First Nations' governance capacity; and,
  • To support the strengthening of the First Nations and Inuit communities' public service management and institutional capacity as well as the development of community governance decision-making mechanisms and frameworks at the individual, community and organizational level.
• Engagement of applicants and recipients in 2025-2026: ISC provides proposal‑based funding to eligible First Nations and organizations to support estates management capacity development, with engagement conducted through an annual call‑out for proposals in collaboration with ISC regions and interested First Nations. No engagement activities were completed in 2025-26 for the Indigenous Governance and Capacity Program, and no engagement activities are currently planned for this program.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports

Results achieved:

ISC invested $4.7 million to fund 75 First Nation-led proposals that strengthened community capacity under the Estates Administrative Regime, fully allocating available funding despite demand exceeding available resources. Funded initiatives supported estate planning awareness through community seminars, workshops, and information sessions, assisted individuals with will development, strengthened local capacity for estates governance, and explored alternative approaches to estate management. These activities benefited First Nations and their members, both on and off reserve, by improving awareness, planning, and governance related to estate administration. Progress will continue to be monitored through recipient reporting as funding agreements are implemented.

The Tribal Council Funding Program supported 78 tribal councils to strengthen service delivery and capacity development of their member First Nations, while the Employee Benefits Program contributed to pension and benefit plans for 573 First Nations and organizations, supporting the attraction and retention of service delivery staff. Governance capacity development funding was also provided to 330 First Nations, Tribal Councils, Inuit communities, and supporting organizations to strengthen capacity across core government functions, including financial management, human resources management, information management and technology, and planning and risk management. As an indicator of community-led planning, 49.1% of First Nations had a completed community-led plan in the 2025-2026 reporting year.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of the Procurement Strategy for Indigenous Business was completed in 2025-2026. Overall, the audit found a strong governance framework and clear alignment with the mandatory minimum 5% Indigenous procurement target, reflecting the program's substantial role in advancing Indigenous economic participation. However, several opportunities for improvement were noted. Key findings indicate that, while mechanisms exist to verify Indigenous business eligibility for PSIB, there is a need for finalized, standardized procedures and comprehensive checklists to address complex cases and ensure accurate and consistent application of PSIB requirements. Additionally, gaps in staff training, limited oversight of third-party verification of Indigenous business eligibility and inconsistencies in eligibility criteria monitoring and reporting practices were observed. The audit also highlighted deficiencies in documentation, risk assessment and formalized reporting channels for non-compliance, which could compromise transparency and the consistent application of the PSIB eligibility criteria. Addressing these issues will help ensure the integrity, accountability and long-term effectiveness of the PSIB in delivering its intended benefits to eligible Indigenous businesses. The audit resulted in four recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• In 2025-2026, The Office of the Comptroller General Horizontal Audit of Procurement Governance was completed. The audit found that departments have procurement management frameworks and governance processes in place, but their maturity and alignment with the Directive vary. Key areas for improvement include:
  • Strengthening frameworks to support compliance, procurement objectives and continuous improvement.
  • Clearly defining roles, responsibilities and escalation criteria.
  • Improving quality control, monitoring and reporting, including supplier performance assessments.
  • Integrating procurement-specific integrity and ethics considerations.
  • Strengthening contract file management and documenting decisions, including the use of internal resources.
  • Ensuring procurement frameworks are communicated to relevant stakeholders and fully aligned with the Directive.
• Overall, departments have foundational processes in place, but greater consistency, documentation, oversight and quality control are needed to strengthen procurement governance and effectiveness. ISC accepted the 13 recommendations and developed a detailed action plan to address the findings.
• The Office of the Procurement Ombud completed in 2025-2026 a Procurement Practice Review of Contracts Awarded to Indigenous Businesses. The Procurement Ombud identified systemic gaps in the implementation of the Procurement Strategy for Indigenous Business, including unclear roles and accountability, inconsistent procurement practices, limited recourse for Indigenous suppliers, and reporting weaknesses related to the 5% Indigenous procurement target. ISC accepted the three recommendations and developed a detailed action plan to address the findings.
• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship initiatives in 2025-2026 which is expected to be completed in May 2026.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Indigenous Governance and Capacity Program is planned for 2026-2027 and is expected to be completed in March 2027.
• The Evaluation of the Grant to Support the New Fiscal Relationship is expected to be completed in March 2031.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding:

• from the New Fiscal Relationship grant due to lower than anticipated expenditures. The unused grant funding is returned to the programs to be made available to First Nations via other funding mechanisms; and 
• to meet departmental priorities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2017-2018

Funding Details

• Listing in the Public Accounts: Contributions to support Land Management and Economic Development
• Name of program terms and conditions: Contributions to Support Land Management and Economic Development
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: This transfer payment supports increased participation of Indigenous communities in the Canadian economy and enables Indigenous peoples to pursue opportunities for employment, income, and wealth creation. The specific objectives of each program include:
  
  Lands and Economic Development Services Program:
  • Enable First Nations and Inuit communities and organizations they mandate to deliver community economic development services;
  • Enable First Nations to assume greater control over reserve land, resources and environment including land use planning, environmental management and compliance, on behalf of the Minister and pursuant to the Indian Act;
  • Provide tools and support to First Nations who wish to transition from land management under the Indian Act to the Framework Agreement on First Nation Land Management; and;
  • Enable the provision of lands, environmental and economic development support services to communities, to assist in achieving the program's objectives.
  Community Opportunity Readiness Program: Increase economic development by providing proposal based financial support to First Nations and Inuit communities to assist in their pursuit of, and participation in, economic opportunities. ISC assesses proposals based on their community economic impacts and supports projects with the greatest impacts.
  
  The Aboriginal Entrepreneurship Program (AEP):
  • Enhance access to capital for Indigenous businesses in Canada;
  • Support activities to establish, expand and diversify the network of Indigenous-owned and controlled financial institutions providing developmental capital in Canada, which are functionally complementary to the mainstream financial sector;
  • Enhance the capacity of Indigenous financial and business development organizations to provide financial services, business information, and developmental support services.
• Engagement of applicants and recipients in 2025-2026: ISC engages with the National Aboriginal Lands Managers Association  and its seven Regional Lands Associations on an ongoing basis to ensure that the Reserve Land and Environment Management Program  and the Land Use Planning  Initiative effectively support land management capacity development on reserve. In 2025-2026, ISC worked collaboratively with these partners to advance revisions and updates to the Reserve Land and Environment Management Program Manual and Toolkit. In addition, the National Aboriginal Land Managers Association, with support from ISC, launched a national workforce survey to provide a comprehensive snapshot of the First Nations land management workforce across Canada. These activities were undertaken to strengthen program delivery and support future capacity-building efforts. ISC also engages regularly with the First Nations Land Management Resource Centre  to identify challenges, discuss opportunities for improvement, and ensure that First Nations are supported in determining, developing, and implementing their own vision for the use, management, and development of reserve lands and resources.
  
  The Department also held regular meetings with partners to discuss implementation and modernization of the of the Aboriginal Entrepreneurship Program and co-development of its program guidelines.

Departmental Results Framework

Link to departmental results:

• Indigenous communities have sustainable land management and infrastructure
• Indigenous communities are progressing in their business and economic growth
• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Communities and the Environment
• Indigenous Entrepreneurship and Business Development
• Community Economic Development
• Indigenous Governance and Capacity Supports

Results achieved:

In 2025-2026, ISC provided $72.9 million in funding for waste initiative projects, including training and supporting capacity development of holistic solid waste management positions on reserve. As a result of this support, eight new waste coordinators were hired in First Nations communities.

In 2025-2026, ISC funded 161 First Nations through the Reserve Land and Environment Management Program, including 12 new entrants, to support their capacity to manage reserve lands at the community level and build stronger local land governance and administration. Land management capacity was also strengthened at the community level through support for the delivery of the Professional Land Managers Certification Program for First Nations land managers, with 10 land managers achieving certification in 2025-2026.

ISC also funded the operations of the First Nation Land Management Resource Centre, which, in addition to providing technical support to signatory First Nations under the Framework Agreement on First Nation Land Management, administered both developmental funding and proposal-based funding to signatory First Nations.

Through its partner organizations, the National Aboriginal Lands Managers Association and the First Nations Land Management Resource Centre, ISC funded land use planning projects in 111 communities, with 11 First Nations completing community-approved land use plans. Together, these activities contributed to strengthened land and environmental management at local levels and supported First Nations communities to continue developing land use plans and increasing their land management capacity.

Indigenous communities also continued progressing in their business and economic growth, including increased participation in major resource development initiatives. In 2025-2026, the Community Opportunity Readiness Program provided contributions totaling $25 million through the national envelope to support participation by First Nation and Inuit communities in 27 economic development projects. The projects are expected to generate 451 Indigenous jobs over the next 8 years and produce total community benefits of $497 million over the same period.

In 2024-2025, the Aboriginal Entrepreneurship Program (AEP) provided $87 million in funding to Indigenous partners, the National Aboriginal Capital Corporations Association and the Métis Capital Corporations which administer and deliver the program.  AEP funding helped strengthened the capacity of the over 50 Indigenous Financial Institutions and 5 Métis Capital Corporations to deliver non-repayable equity contributions, developmental lending, business advisory services, and other targeted supports that foster business growth, resulting in over 1200 developmental loans that supported Indigenous entrepreneurs across Canada launch, expand, and acquire businesses. Results for 2025-26 are not yet available as program partners are finalizing their annual activity reports.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of the Procurement Strategy for Indigenous Business was completed in 2025-2026. Overall, the audit found a strong governance framework and clear alignment with the mandatory minimum 5% Indigenous procurement target, reflecting the program's substantial role in advancing Indigenous economic participation. However, several opportunities for improvement were noted. Key findings indicate that, while mechanisms exist to verify Indigenous business eligibility for PSIB, there is a need for finalized, standardized procedures and comprehensive checklists to address complex cases and ensure accurate and consistent application of PSIB requirements. Additionally, gaps in staff training, limited oversight of third-party verification of Indigenous business eligibility and inconsistencies in eligibility criteria monitoring and reporting practices were observed. The audit also highlighted deficiencies in documentation, risk assessment and formalized reporting channels for non-compliance, which could compromise transparency and the consistent application of the PSIB eligibility criteria. Addressing these issues will help ensure the integrity, accountability and long-term effectiveness of the PSIB in delivering its intended benefits to eligible Indigenous businesses. The audit resulted in four recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• The Office of the Procurement Ombud completed in 2025-2026 a Procurement Practice Review of Contracts Awarded to Indigenous Businesses. The Procurement Ombud identified systemic gaps in the implementation of the Procurement Strategy for Indigenous Business, including unclear roles and accountability, inconsistent procurement practices, limited recourse for Indigenous suppliers, and reporting weaknesses related to the 5% Indigenous procurement target. ISC accepted the three recommendations and developed a detailed action plan to address the findings.
• In 2025-2026, The Office of the Comptroller General Horizontal Audit of Procurement Governance was completed. The audit found that departments have procurement management frameworks and governance processes in place, but their maturity and alignment with the Directive vary. Key areas for improvement include:
  • Strengthening frameworks to support compliance, procurement objectives and continuous improvement.
  • Clearly defining roles, responsibilities and escalation criteria.
  • Improving quality control, monitoring and reporting, including supplier performance assessments.
  • Integrating procurement-specific integrity and ethics considerations.
  • Strengthening contract file management and documenting decisions, including the use of internal resources.
  • Ensuring procurement frameworks are communicated to relevant stakeholders and fully aligned with the Directive.
• Overall, departments have foundational processes in place, but greater consistency, documentation, oversight and quality control are needed to strengthen procurement governance and effectiveness. ISC accepted the 13 recommendations and developed a detailed action plan to address the findings.
• An Audit of the Additions to Reserve Process is planned and expected to be completed by February 2028.

Findings of evaluations completed in 2025-2026:

• The Evaluation of Economic Development Capacity and Readiness was completed in  2025-2026 and assessed the program over the period from 2014-2015 to 2022-2023. The evaluation  found that the program supported First Nations and Inuit communities in pursuing community-defined economic development priorities and generated  economic and social benefits, including job creation, increased own-source revenue, and improved community wellbeing. The evaluation also found that the program filled an important gap by supporting foundational and pre-development activities not funded through other sources. However, structural and operational challenges constrained program effectiveness and equity including reporting burden, rigid eligibility criteria, and misaligned funding timelines. Formula-based funding was found to be insufficient for many communities to hire and retain economic development officers. The evaluation found that proposal-based funding favoured communities with existing capacity and prior success. The evaluation also identified program access barriers for Inuit communities. The evaluation recommended modernizing funding approaches, developing a more integrated "single-window" funding model, strengthening regional capacity, and co-developing culturally relevant performance measures with First Nations and Inuit partners.
• The Evaluation of Individual Affairs is expected to be completed in March 2027.
• The Cluster Evaluation of the Communities and the Environment Program (Lands Management Sub-programs, Contaminated Sites On-Reserve, First Nations Solid Waste Initiative) is expected to be completed in March 2029.
• The Evaluation of Indigenous Entrepreneurship and Business Development is expected to be completed in March 2029.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding:

• from the New Fiscal Relationship grant due to lower than anticipated expenditures. The unused grant funding is returned to the programs to be made available to First Nations via other funding mechanisms; and 
• to meet departmental priorities.

Note: The 2025-2026 actual spending of this transfer payment in the 2025-2026 Public Accounts is $294,495,223.25.  The difference of $6,732.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: 2022-2023
• End date: Ongoing
• Fiscal year for terms and conditions: 2022-2023

Funding Details

• Listing in the Public Accounts: Contributions to support service transfer and transformation
• Name of program terms and conditions: Contributions to support service transfer and transformation
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of the transfer payment program is to: advance broad level engagement, research and policy development with Indigenous partners for a more holistic approach to service delivery and transformation; and, undertake preparatory work, including pilot projects in service design and delivery, to prepare for a subsequent transfer of responsibility for services from Indigenous Services Canada to Indigenous partners.
  
  Through this funding authority, Indigenous governing bodies are supported to participate in the negotiation of coordination agreements to support the exercise of jurisdiction in relation to child and family services. First Nations, Inuit and Métis governments and organizations, including non-status, off-reserve and other Indigenous groups will also be engaged on key program and policy developments to support Indigenous jurisdictional development activities, capacity building or self-determination.
  
  Funding also supports research, evaluation and analysis, including pilot projects that enable Indigenous-centered evidence for decision making and serve as the basis for long-term approaches to service transfer. As an enabling support mechanism, this authority will work in conjunction with funding approved through separate program authorities with pre-determined indicators and performance measurement strategies.
• Engagement of applicants and recipients in 2025-2026: As part of the capacity-building funding program, ISC engaged with applicants and recipients to support their jurisdictional development and preparations for the exercise of jurisdiction pursuant to the Act respecting First Nations, Inuit and Métis children, youth and families (the Act).

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination
• Indigenous Peoples are culturally safe and socially well 

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports
• Child and Family Services
• Health Systems Support

Results achieved:

ISC supported Indigenous groups, communities or peoples that hold section 35 rights under the Act respecting First Nations, Inuit and Métis children, youth and families (the Act), or their Indigenous governing bodies wishing to explore readiness to exercise jurisdiction over child and family services, and develop Indigenous child and family services legislation, service delivery models and programs prior to entering into coordination agreement discussions.

In 2025-2026, the Department approved funding for 153 capacity-building funding proposals to support recipients in advancing core jurisdictional development activities; participated in 27 coordination agreement discussion tables, including five renewal tables for existing agreements; and provided funding to 11 Indigenous governing bodies to participate in coordination agreement discussions. As a result of this support, Section 35 collectives, Indigenous governing bodies, and national and regional Indigenous organizations undertook jurisdictional development activities to explore and/or prepare for exercising jurisdiction pursuant to the Act, and advance culturally appropriate reform of child and family services. These activities supported Indigenous governing bodies in making progress in their efforts to exercise jurisdiction over child and family services in their communities and move agreements closer to signing.

Evaluation and audits

Findings of audits completed in 2025-2026:

• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship initiatives in 2025-2026 which is expected to be completed in May 2026.
• An Audit of the First Nations Child and Family Services Program is underway and expected to be completed by June 2027.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of Health Systems Support for First Nations (Health Planning, Quality Management and Systems Integration and Health Human Resources) is expected to be completed in March 2029.
• The Evaluation of the Implementation of ISC supports to the Act Respecting First nations, Inuit and Métis children, youth and families is expected to be completed in July 2027.
• The Evaluation of Transformational Approach to Indigenous Data and the surveys on Indigenous Peoples Program is expected to be completed in March 2028.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an allocation of funding to meet departmental priorities; and
• unused funds at year-end will return to the fiscal framework.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2020-2021

Funding Details

• Listing in the Public Accounts: Contributions to support the Aboriginal Economic Development Strategic Partnerships Initiative
• Name of program terms and conditions: Contributions to Support the Aboriginal Economic Development Strategic Partnerships Initiative
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The overall objective of the Strategic Partnerships Initiative (SPI) is to increase economic development opportunities for Indigenous communities and businesses. SPI is a whole-of-government innovative program launched in 2010 to increase Indigenous participation in large, complex, multiyear economic opportunities that span a range of sectors. It promotes partnerships between multiple federal partners (22 federal departments and agencies), provincial and territorial governments, and non-federal groups in key economic areas.
  
  SPI contribution funding includes:
  • Ongoing support for initiatives in key sectors of the Canadian economy such as tourism, mining, fisheries, forestry, agriculture and energy.
  • Support for regional initiatives in clean energy and support capacity for local, economically sustainable clean energy projects in Indigenous communities. This investment plays a complementary and enabling role in the advancement of Canada's Indigenous Climate Leadership and Strengthened Climate Plan.
  • Support for the federal mandatory 5% Indigenous procurement target. Through the National Indigenous Procurement Initiative, Public Services and Procurement Canada is working with federal partners and Indigenous organizations to invest in capacity development and program specific opportunities.
• Engagement of applicants and recipients in 2025-2026: The Strategic Partnerships Initiative engaged applicants and recipients through governance bodies, including the Interdepartmental Woking Group (IDWG), Directors General Investment Committee (DGIC), with the IDWG supporting early proposal development and incorporation of Indigenous partner input.

Departmental Results Framework

Link to departmental result:

• Indigenous communities are progressing in their business and economic growth

Link to the department's Program Inventory:

• Community Economic Development

Results achieved:

ISC provided over $20 million of contribution funding through its regional offices to support 240 projects put forward by First Nation and Inuit communities and organizations. The national office also provided $2.8 million to five organizations to support building capacity in communities. These investments supported First Nations, Inuit and Métis communities in leveraging investments from the private sector and other sources to advance economic development opportunities.

Additionally, the Department provided contributions totaling $25 million through the national envelope to support participation by First Nation and Inuit communities in 27 economic development projects. The projects are expected to generate 451 Indigenous jobs over the next eight years and produce total community benefits of $497 million over the same period.

Further, the Department provided over $24 million of contribution funding to 25 Strategic Partnerships Initiatives in diverse sectors of the economy including Clean Energy, Mining, Tourism, and Forestry. These initiatives have leveraged over $89 million in funding from partners - other federal government departments, provincial governments, Indigenous partners, the private sector, creating a ratio of 1:3 leveraged investments. Co-development of a National Indigenous Tourism Strategy was paused as a result of significant shifts within the tourism industry sector and broader ecosystem.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of the Procurement Strategy for Indigenous Business was completed in 2025-2026. Overall, the audit found a strong governance framework and clear alignment with the mandatory minimum 5% Indigenous procurement target, reflecting the program's substantial role in advancing Indigenous economic participation. However, several opportunities for improvement were noted. Key findings indicate that, while mechanisms exist to verify Indigenous business eligibility for PSIB, there is a need for finalized, standardized procedures and comprehensive checklists to address complex cases and ensure accurate and consistent application of PSIB requirements. Additionally, gaps in staff training, limited oversight of third-party verification of Indigenous business eligibility and inconsistencies in eligibility criteria monitoring and reporting practices were observed. The audit also highlighted deficiencies in documentation, risk assessment and formalized reporting channels for non-compliance, which could compromise transparency and the consistent application of the PSIB eligibility criteria. Addressing these issues will help ensure the integrity, accountability and long-term effectiveness of the PSIB in delivering its intended benefits to eligible Indigenous businesses. The audit resulted in four recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• The Office of the Procurement Ombud completed an audit in 2025-2026 on Procurement Practice Review of Contracts Awarded to Indigenous Businesses. The Procurement Ombud identified systemic gaps in the implementation of the Procurement Strategy for Indigenous Business, including unclear roles and accountability, inconsistent procurement practices, limited recourse for Indigenous suppliers, and reporting weaknesses related to the 5% Indigenous procurement target. ISC accepted the three recommendations and developed a detailed action plan to address the findings.
• In 2025-2026, The Office of the Comptroller General Horizontal Audit of Procurement Governance was completed. The audit found that departments have procurement management frameworks and governance processes in place, but their maturity and alignment with the Directive vary. Key areas for improvement include:
  • Strengthening frameworks to support compliance, procurement objectives and continuous improvement.
  • Clearly defining roles, responsibilities and escalation criteria.
  • Improving quality control, monitoring and reporting, including supplier performance assessments.
  • Integrating procurement-specific integrity and ethics considerations.
  • Strengthening contract file management and documenting decisions, including the use of internal resources.
  • Ensuring procurement frameworks are communicated to relevant stakeholders and fully aligned with the Directive.
• Overall, departments have foundational processes in place, but greater consistency, documentation, oversight and quality control are needed to strengthen procurement governance and effectiveness. ISC accepted the 13 recommendations and developed a detailed action plan to address the findings.
• An Audit of the Additions to Reserve Process is planned and expected to be completed by February 2028.

Findings of evaluations completed in 2025-2026:

• The Evaluation of the Strategic Partnerships Initiative (SPI) was completed in June 2025 and assessed the program over the 2014-2015 to 2023-2024 period. The evaluation confirmed that the program remains relevant and aligned with reconciliation objectives, with strengths in collaboration and flexible delivery. The evaluation found that SPI helped expand what departments could achieve in partnership with Indigenous communities but did not always address the broader conditions needed to support economic development. It also identified challenges related to performance measurement, governance, federal partner participation, GBA+ integration, and planning for the long-term sustainability of initiatives. The evaluation recommended strengthening whole-of-government participation and partnerships, improving governance and performance measurement, including culturally relevant GBA+, and requiring initiatives to plan for long-term sustainability beyond SPI funding.
• The Cluster Evaluation of Community Economic Development is planned to be completed in 2030-2031.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding to meet departmental priorities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2017-2018

Funding Details

• Listing in the Public Accounts: Contributions to support the construction and maintenance of community infrastructure
• Name of program terms and conditions: Contributions to support the construction and maintenance of community infrastructure
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The provision of community infrastructure funding to First Nations is based on the Government of Canada's spending power as a matter of social policy. The Department of Indigenous Services Canada (ISC) allocates funding for the construction and the maintenance of community infrastructure to First Nations at regional level through formula, proposal-based project funding or as a combination of both. Each component of the Contributions to Supply Construction and Maintenance of Community Infrastructure program has a specific objective:
  
  Capital Facilities Maintenance Program (CFMP): to provide financial support to First Nations and other eligible recipients to:
  • invest in physical assets or services that mitigate health and safety risks in their communities;
  • make sure assets meet established codes and standards;
  • make sure assets are managed in a cost-effective and efficient manner that protects, maintains and maximizes asset life cycle; and
  • make sure the above activities are done in an environmentally sound and sustainable manner.
  First Nations Infrastructure Funds (FNIF) Program: to improve the quality of life and the environment for First Nations communities by assisting First Nations in the provinces to improve and increase public infrastructure on reserves; Crown Land; land set aside for the use and benefit of a First Nation; and, off reserve in the case of cost-shared project with non-First Nation partners such as neighboring municipalities.
  
  Fire Protection Awareness Program (FPAP): To promote fire protection awareness in band or federally operated schools.
• Engagement of applicants and recipients in 2025-2026: ISC engaged First Nations throughout the development of the updated tendering policy between 2023 and 2026. Engagement activities were carried out through multiple channels to ensure broad participation and feedback. These included more than 20 in-person or virtual engagement sessions with First Nations across Canada; bi-weekly meetings with the Assembly of First Nations, and additional opportunities to provide input through a SurveyMonkey questionnaire and a dedicated email address. Feedback received through these engagement activities played a key role in shaping the updated policy. Tendering-related issues and recommendations identified by First Nations were carefully reviewed and considered in the policy updates. An engagement report was developed to document the advice and input received and describe how it would be incorporated into the updated policy.
  
  ISC continued to work closely with First Nations to support their access to safe, clean, drinking water on reserves.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Community Infrastructure
• Communities and the Environment

Results achieved:

ISC investments in water, wastewater and solid waste infrastructure supported First Nations communities in building, maintaining and improving community infrastructure that contributes to healthy, safe and prosperous communities.

ISC invested $1.32 billion to support First Nations on reserve water and wastewater infrastructure, including close to $420 million to support operations and maintenance of water and wastewater systems on reserve. In doing so, ISC supported First Nations in lifting four long-term drinking water advisories from public water systems on reserve. In addition, 29 short-term advisories on public water systems on reserves were addressed before becoming long-term. Between 2015 and March 31, 2026, 151 long-term drinking water advisories have been lifted from public systems on reserve.

Since 2016, and as of March 31, 2026, ISC investments of $5.83 billion in targeted funding have supported the initiation of 1,720 water and wastewater projects in 596 First Nations communities serving approximately 485,000 people. Of these projects, 868 have been completed as of March 31, 2026. From April 1, 2025, through to March 31, 2026, ISC investments supported the completion of 173 water and wastewater projects, including seven new water and wastewater treatment plants.

ISC provided $72.9 million in funding for Waste Initiative projects, as well as $51 million in funding intended for operations and maintenance of waste infrastructure and services. This funding supported First Nations communities in carrying-out infrastructure construction and equipment purchases, implementing diversion programs, conducting studies and assessments, paying operator salaries, tipping fees and fuel, and providing waste operator training and developing awareness initiatives. The percentage of First Nations communities with adequate solid waste management systems increased to 65% in 2025-2026 from 58.9% in 2024-2025, as a result of a net increase of 51 additional First Nations communities having adequate waste management systems in 2025-2026.

In addition, ISC's updated Policy on Tendering for First Nations' federally funded capital projects (ISC tendering policy) came into effect on April 1, 2026. The Policy provides First Nations communities with enhanced and clearer guidance to support fair, transparent, and accountable tendering processes for capital projects funded through the Capital Facilities and Maintenance Program (CFMP) and First Nations Infrastructure Fund (FNIF). It also introduces measures that strengthen First Nations' self-determination and participation in the capital projects, while promoting socioeconomic benefits for First Nations through infrastructure investments.

Compliance with the Tendering Policy is a condition of funding under the CFMP and the FNIF. Capital projects funded through these programs are subject to the minimum requirements set out in the policy, including adherence to core tendering principles, the application of established thresholds to determine the appropriate procurement process, and the use of evaluation methods that promote fairness, transparency, and accountability in the assessment of bids and proposals.

The policy recognizes First Nations as project owners and provides tendering best practices to support their self-determination and decision-making processes. It promotes achievement of best value in capital projects while encouraging the use of First Nations resources and Indigenous businesses to support local socio-economic development. The policy guidance has also been aligned with industry standards and practices, helping to strengthen collaboration between First Nations and contractors and contributing to more effective project delivery.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of Elementary and Secondary Education and Education Facilities was completed in 2025-2026. Overall, the audit found elements of a management control framework were in place, including documented roles and responsibilities, national and regional communication channels, funding allocation processes, and performance frameworks. While these foundational elements were in place, several areas where management control practices and processes could be improved were identified. These included documenting coordination processes, formalizing the risk and control framework, reviewing and updating school prioritization rankings, explaining calculations for operations and maintenance, reviewing performance information profiles, and better demonstrating the impact of infrastructure investments on education outcomes.The audit resulted in six recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• In 2025-2026, the Office of the Auditor General completed a Follow-up on Programs for First Nations: Audit of Access to Safe Drinking Water in First Nations Communities (2022). The follow-up report found that progress toward ensuring reliable access to safe drinking water in First Nations communities remained limited. While the number of long-term drinking water advisories decreased from 60 in 2020 to 35 in 2025, many communities continued to be affected, including advisories that had been in place for a decade or longer. ISC accepted the five recommendations and developed a detailed action plan to address the findings.
• The Commissioner of the Environment and Sustainable Development is currently performing an Audit of Departmental Progress in Implementing Sustainable Development Strategies - Clean and Safe Water for All Canadians (Goal 6) and is planned to be tabled by November 2026.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of Community Infrastructure ((Housing On-Reserve, Education Facilities, Health Facilities, Other Community Infrastructure and Activities, Water and Wastewater Infrastructure) is expected to be completed in March 2029.
• An evaluation of the non-infrastructure elements of the On-Reserve Water and Wastewater Program is expected to be completed in November 2027, focusing on water operator training and capacity development and the Community-Based Drinking Water Monitors initiative.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding:

• from the New Fiscal Relationship grant due to lower than anticipated number of Grant recipients.  The unused grant funding is returned to the programs to be made available to First Nations via other funding mechanisms; and
• to meet departmental priorities.

Note: The 2024-2025 actual spending of this transfer payment in the 2024-2025 Public Accounts is $4,903,111,580. The difference of $398,916.00 between the 2024-2025 Public Accounts and DRR is due to the losses in transfer payments.

The 2025-2026 actual spending of this transfer payment in the 2025-2026 Public Accounts is $3,899,173,336. The difference of $598,100.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: 2019-2020
• End date: Ongoing
• Fiscal year for terms and conditions: 2019-2020

Funding Details

• Listing in the Public Accounts: Contributions to support the Métis Nation Post-Secondary Education Strategy
• Name of program terms and conditions: Contributions to Support the Métis Nation Post-Secondary Strategy
• Type of transfer payment: Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The Métis Nation Post-Secondary Education Strategy supports Métis Nation students pursuing post-secondary education and fosters lifelong learning and skills development. This includes direct financial support for Métis Nation students, complementary programs and services, and governance capacity to support service delivery. Funding for the Métis Nation Post-Secondary Education Strategy is provided through the following three main components:
  • Student financial support: funding to students to support their pursuit of post-secondary education.
  • Programs and Services: funding for activities that are determined based on local needs assessments with the aim of promoting students' pursuit of post-secondary education and the attainment of a credential.
  • Governance capacity: funding to strengthen Métis Nation education governance capacity, including current post-secondary education course offerings and programs now being provided by the Métis Nation and further developing and strengthening post-secondary education partnerships and networks.
• Engagement of applicants and recipients in 2025-2026: ISC engaged Métis Nation partners on a review of Métis Nation Post-Secondary Education Strategy and 2026-2027 National Program Guidelines and worked with Métis Nation funding recipients to ensure the accuracy of program reporting data and address outstanding financial reporting requirements, including on 2025-26 expenditures, carry forward amounts, audited financial statements, and unexpended funds. Additionally, ISC held regular check-in meetings to address partner questions, discuss emerging issues, strengthen relationships, and coordinated partner participation in the ongoing internal evaluation of the post-secondary education program.

Departmental Results Framework

Link to departmental result:

• Indigenous students are progressing in their education

Link to the department's Program Inventory:

• Post-Secondary Education

Results achieved:

ISC provided post-secondary education funding to support 5,838 Métis Nation students, of whom approximately 3,906 identified as female 1,825 identified as male, and 107 identified as another gender. The number of Métis Nation students supported represents an increase of 813 students as compared with the 2024-25 reporting year and is five times the number of students first supported under the Métis Nation Post-Secondary Education Strategy in 2019-2020. Note that performance results correspond to the preceding fiscal year to align with public reporting timelines; therefore, results refer to the 2024-2025 fiscal year.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Post-Secondary Education Program is expected to be completed in November 2027.

Explanation of variances

Not applicable.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2017-2018

Funding Details

• Listing in the Public Accounts: Grant for Band Support Funding
• Name of program terms and conditions: Grant for Band Support Funding
• Type of transfer payment: Grants
• Type of appropriation: Estimates 

Purpose and Objectives

• Purpose and objectives of transfer payment program: To assist band councils to meet the costs of local government and administration of departmentally funded services. This support is intended to provide a stable funding base, facilitating effective community governance and the efficient delivery of services. Band Support Funding allows First Nations communities the flexibility to allocate funds according to their individual needs and priorities and be responsive in an environment of growing complexity and as they move toward self-determination.
• Engagement of applicants and recipients in 2025-2026: No engagement activities were completed in 2025-2026.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports

Results achieved:

ISC provided 577 First Nations with Band Support Funding to support their core governance and administrative capacity, including the costs of local government and administration of departmentally funded services. The funding provided a stable base for core operations, while giving First Nations the flexibility to allocate resources according to their individual needs and priorities, supporting community governance and delivery of services in complex environments and as communities move toward self-determination. The percentage of First Nations with a completed community-led plan was 49.1% in 2025-2026.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.  

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Indigenous Governance and Capacity Program is expected to be completed in February 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding:

• to the New Fiscal Relationship grant due to higher than anticipated expenditures; and,
• to meet departmental priorities.

Note: The 2025-2026 actual spending of this transfer payment in the 2025-2026 Public Accounts is $186,621,207.56. The difference of $44,646.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2023-2024 

Funding Details

• Listing in the Public Accounts: Grant to implement the Framework Agreement on First Nation Land Management
• Name of program terms and conditions: Grant to implement the Framework Agreement on First Nation Land Management
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of this transfer payment program is to enable recipient First Nations to carry out and manage the lands and environmental management responsibilities set out in the negotiated Framework Agreement and its ratifying legislation the Framework Agreement on First Nations Land Management Act. As a form of sectoral self-government, First Nations operating under First Nations Land Management are better able to respond to community priorities related to lands, economic development opportunities, and improved administration of land interests and tenure.
• Engagement of applicants and recipients in 2025-2026: ISC engages with recipients through regularly scheduled meetings with the First Nations Land Management Resource Centre , ongoing discussions regarding program delivery, and collaboration on the implementation of land management initiatives. These engagements provide opportunities to discuss program priorities, operational issues, capacity needs, and opportunities for continuous improvement.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Communities and the Environment

Results achieved:

ISC welcomed four new signatories to the Framework Agreement on First Nation Land Management. An additional four First Nations became operational under the Framework Agreement and are now managing their reserve lands and resources under their own land codes, bringing the total number of First Nations managing their reserve lands outside the Indian Act to 121. In addition, the Department transferred responsibility for the administration of Phase roman numeral 1I Environmental Site Assessments to the First Nations Land Management Resource Centre, supporting increased First Nations-led delivery of land management services.

Through service transfers and ongoing collaboration with partners, signatory and operational First Nations have improved access to the services, expertise, and tools provided by the First Nations Land Management Resource Centre, strengthening their capacity to exercise greater control over their lands and resources.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• An Audit of the Additions to Reserve Process is planned to be completed by February 2028.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Cluster Evaluation of the Communities and the Environment Program (Lands Management Sub-Programs, Contaminated Sites On-Reserve, First Nations Solid Waste Initiative) is expected to be completed in March 2029.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects that the number of communities with ratified land codes, eligible for operational funding this fiscal year was lower than the forecast number.

Timeframe

• Start date: April 1, 2019
• End date: Ongoing
• Fiscal year for terms and conditions: 2019-2020

Funding Details

• Listing in the Public Accounts: Grant to support the new fiscal relationship for First Nations
• Name of program terms and conditions: Grant to support the new fiscal relationship for First Nations
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The Grant is a funding mechanism, typically with 10-year agreements, intended to provide increased predictability and facilitate greater flexibility for recipients to address local needs. The intention is to move away from contribution funding and program-based reporting for recipients that have demonstrated sound governance and financial management. Under this model, First Nations members - not the department - will assess adequacy of services and hold their leadership accountable for management of services.
• Engagement of applicants and recipients in 2025-2026: No engagement activities were completed in 2025-2026 as the Evaluation of the Grant to Support the New Fiscal Relationship for First Nations was ongoing during the reporting period and will serve as the basis for future engagement.

Departmental Results Framework

Link to departmental results:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Home and Long-Term Care
• Income Assistance
• Elementary and Secondary Education
• Post-Secondary Education
• Health Systems Support
• Primary Health Care
• Public Health Promotion and Disease Prevention
• Community Infrastructure
• Communities and the Environment
• Community Economic Development
• Indigenous Governance and Capacity Supports

Results achieved:

An additional 13 First Nations joined the New Fiscal Relationship Grant in 2025-2026, for a total of 153 First Nations. New Fiscal Relationship Grant eligibility was also expanded to First Nations-led service delivery entities, and 15 Tribal Councils, two health authorities and one education authority joined the Grant, brining to total number of recipients to 191. More than $2 billion in transfer payments flowed via the Grant in 2025-2026, and recipients were provided $48 million ($150 million cumulative) to offset increased costs due to inflation and population growth.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship initiatives in 2025-2026 which is expected to be completed in May 2026.

Findings of evaluations completed in 2025-2026:

• The Evaluation of the New Fiscal Relationship (NFR) Grant was completed in 2025-2026 and assessed the Grant from 2019 to 2025. The evaluation found that the Grant supported First Nations' self-determination by providing more flexible and predictable funding, greater autonomy over spending, improved long-term planning, and reduced reporting requirements. However, capacity gaps created barriers to participation, particularly for smaller and remote First Nations, and concerns were identified with the Grant's escalator and its responsiveness to inflation, regional costs, and population growth. The evaluation also found that progress on mutual accountability remained unclear and that broader funding sufficiency continued to limit the Grant's benefits. The evaluation recommended strengthening capacity and training supports, expanding access to the Grant and the programs it covers, reviewing the escalator formula with First Nation partners, and continuing to co-develop an approach to mutual accountability.
• The Evaluation of the Emergency Management Assistance program (EMAP) was completed in 2025-2026 and assessed EMAP from 2017 to 2023, as well as the Indigenous Community Support Fund from 2020 to 2023. The evaluation confirmed the continued need for the program and identified opportunities to strengthen preparedness and mitigation funding, improve coordination with federal, provincial, territorial, and First Nations partners, address jurisdictional challenges, and enhance Emergency Management Coordinator supports. The evaluation also found that proposal-based funding and eligibility criteria limited First Nations' ability to address emergency management priorities, while complex reimbursement and reporting requirements created administrative burden and payment delays. The evaluation recommended improving funding approaches, strengthening coordination and Emergency Management Coordinator supports, and improving the clarity and efficiency of EMAP funding processes.
• The Evaluation of Individual Affairs is expected to be completed in November 2027.
• The Evaluation of Communicable Disease Control and Management is expected to be completed in January 2027.
• The Evaluation of the Mental Wellness Program is expected to be completed in March 2030.
• The Cluster Evaluation of Healthy Living and Healthy Child Development is expected to be completed in March 2028.
• The Cluster Evaluation of Primary Health Care (Clinical and Client Care, e-Health Infrastructure and community oral health services is expected to be completed in March 2027.
• The Cluster Evaluation of Health Systems Support for First Nations and Inuit (Health Planning, Quality Management and Systems Integration and Health Human Resources) is expected to be completed in March 2029.
• The Evaluation of the Income Assistance Program is expected to be completed in November 2026.
• The Evaluation of the Elementary and Secondary Education Program is expected to be completed in November 2026.
• The Evaluation of the Post-Secondary Education Program is expected to be completed in November 2027.
• The Cluster Evaluation of Community Infrastructure ((Housing On-Reserve, Education Facilities, Health Facilities, Other Community Infrastructure and Activities, Water and Wastewater Infrastructure) is expected to be completed in March 2029.
• An evaluation of the non-infrastructure elements of the On-Reserve Water and Wastewater Program is expected to be completed in November 2027, focusing on water operator training and capacity development and the Community-Based Drinking Water Monitors initiative.
• The Cluster Evaluation of the Communities and the Environment Program (Lands Management Sub-programs, Contaminated Sites On-Reserve, First Nations Solid Waste Initiative) is expected to be completed in March 2029.
• The Cluster Evaluation of Community Economic Development is expected to be completed in March 2031.
• The Evaluation of the Indigenous Governance and Capacity Program is expected to be completed in March 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an incremental funding provided through Supplementary Estimates to adjust the New Fiscal Relationship grant for inflation and population growth;
• an allocation of funding:
  • to support the Elementary and Secondary Education; and
  • to meet departmental priorities.

Note: The actual amount of this transfer payment in the 2024-2025 Public Accounts is $1,677,434,947.85. The difference of $171,618.00 between the 2024-2025 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2013-2014

Funding Details

• Listing in the Public Accounts: Grant to the Miawpukek Indian Band to support designated programs
• Name of program terms and conditions: Grant to the Miawpukek Indian Band to support designated programs
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: This 10-year grant agreement provides the Miawpukek First Nation with a high degree of control over the management, administration, and operational functions of the community. The grant agreement allows the Miawpukek First Nation to identify and allocate funds to community priorities and enables it to manage its programs effectively while promoting creativity to seize opportunities and maximize efficiency. It covers a range of programming including land management and registration, membership management, education, social services, infrastructure, Indigenous government and band support funding, band employee benefits, and community economic development.
• Engagement of applicants and recipients in 2025-2026: The New Fiscal Relationship Grant Secretariat, regional officials and Miawpukek leadership continued engagement during 2025-2026 to modernize the community's unique grant arrangement. Discussions focused on community priorities, opportunities to incorporate additional funding streams, the treatment of key cost drivers and the transition to a New Fiscal Relationship grant approach for 2026-2027. The engagement was intended to ensure that Miawpukek leadership drove the renewal process and that a renewed funding agreement could take effect April 1, 2026.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports

Results achieved:

ISC continued to provide the Miawpukek First Nation with stable grant funding for the management and delivery of designated programs, including education, social services, infrastructure, governance and band support, land and membership administration, employee benefits, and community economic development. The grant enabled the community to determine how funding was allocated among its priorities and to manage the covered programs with a high degree of local control across program areas including primary health care, health systems support, community infrastructure, emergency management, and supplementary health benefits.

ISC and Miawpukek First Nation also initiated meetings and preparatory work to modernize the funding relationship and established the foundation to transition the designated programs to a New Fiscal Relationship grant approach for 2026-2027, representing a more modern and responsive grant structure.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship in 2025-2026 which is expected to be completed in May 2026.

Findings of evaluations completed in 2025-2026:

• The Evaluation of the Miawpukek First Nation Grant Agreement is expected to be completed in March 2030.

Explanation of variances

Not applicable.

Timeframe

• Start date: 1997
• End date: Ongoing
• Fiscal year for terms and conditions: 2021-2022

Funding Details

• Listing in the Public Accounts: Grants and Contributions to increase First Nations and Inuit Youth Participation in Education and Labour Market Opportunities
• Name of program terms and conditions: Grants and Contributions to Increase Indigenous Youth Participation in Education and Labour Market Opportunities
• Type of transfer payment: Grants and Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: ISC provides a number of special incentives to address the significantly lower rate of educational attainment within the Indigenous population and First Nations and Inuit under-representation in the Canadian workforce. These incentives serve to integrate culturally appropriate content within elementary and secondary education, facilitate student transitions from secondary to post-secondary education and/or from school to the workplace and, ultimately, increase the number of skilled Indigenous youth in the workforce.
• Engagement of applicants and recipients in 2025-2026: ISC completed engagement on changes to the Terms and Conditions for the First Nations and Inuit Youth Employment Strategy (FNIYES), Key changes approved included strengthening consistency of eligible expenses across program components to better reflect student experiences, stronger alignment with Employment and Social Development Canada's Youth Employment and Skills Strategy and expanding eligibility to include landless bands. FNIYES also supported a National Science Camp, hosted in partnership with the Indigenous Knowledge and Wisdom Centre, which brought together First Nations and Inuit youth from across Canada to explore Western science alongside Treaty 6 traditional knowledge and teachings. Participants highlighted the value of cultural teachings, healing opportunities, and awareness of various career pathways.
  
  Additionally, ISC contributed to annual revisions to the Education Information System to improve the collection and reporting of data on adult learners, including the addition of new graduation codes and region-specific values unique to adult learners.

Departmental Results Framework

Link to departmental result:

• Indigenous students are progressing in their education

Link to the department's Program Inventory:

• Elementary and Secondary Education
• Post-Secondary Education

Results achieved:

ISC continued implementation of the First Nations and Inuit Youth Employment Strategy (FNIYES), which supports initiatives that provide First Nations and Inuit youth with work experience, information about career options, and opportunities to develop skills for employment and career advancement. FNIYES supported 3,973 youth, of whom 2,084 identified as female and 1,889 identified as male. Through the Skills Link Program, 892 youth were supported in mentored work and/or co-operative education placements, helping participants gain essential employment skills, perform effectively in workplace settings, and explore job and career options. Participation was distributed nearly equally between female (445 youth) and male (447 youth) students. Additionally, through the Summer Work Experience Program, 3,081 youth were supported with summer employment opportunities to gain work experience and develop employability skills, of whom 1,639 identified as female and 1,442 identified as male. Note that performance results correspond to the preceding fiscal year to align with public reporting timelines; therefore, results refer to the 2024-2025 fiscal year.

Additionally, through the First Nations and Inuit Cultural Education Centres Program and the Inuit Cultural Education Centres Program, the development and delivery of cultural education programming was supported through over 40 cultural centres across Canada.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of Elementary and Secondary Education and Education Facilities was completed in 2025-2026. Overall, the audit found elements of a management control framework were in place, including documented roles and responsibilities, national and regional communication channels, funding allocation processes, and performance frameworks. While these foundational elements were in place, several areas where management control practices and processes could be improved were identified. These included documenting coordination processes, formalizing the risk and control framework, reviewing and updating school prioritization rankings, explaining calculations for operations and maintenance, reviewing performance information profiles, and better demonstrating the impact of infrastructure investments on education outcomes. The audit resulted in six recommendations. Management has accepted the recommendations, and has developed a management action plan to address them.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Elementary and Secondary Education is expected to be completed in November 2026.
• The Evaluation of Post-Secondary Education is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding to meet departmental priorities.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2018-2019

Funding Details

• Listing in the Public Accounts: Grants and Contributions to provide income support to on-reserve residents and Status Indians in the Yukon Territory
• Name of program terms and conditions: Grants and Contributions to provide income support to on-reserve residents and Status Indians in the Yukon Territory
• Type of transfer payment: Grants and Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: ISC provides funding for the following social services:
  • Grant and contribution funding for Income Assistance and Assisted Living is targeted to clients or beneficiaries who are ordinarily resident on reserve or who, for the purposes of these programs, are deemed to be ordinarily resident on reserve.
  • Grants and contributions to eligible recipients under the Income Assistance program are intended to provide financial assistance to low-income on-reserve residents and Status First Nations in Yukon to support their basic and special needs and to help them become more self-reliant, in alignment with the rate schedule and eligibility criteria of the reference province or territory.
  • Grants and contributions under the Assisted Living program (AL) are intended to provide funding for non-medical, social support services to seniors, adults with chronic illness, and children and adults with disabilities (mental and physical) on reserve or Status First Nations in Yukon to help them maintain their independence. There are three major components:
    • in-home care;
    • adult foster care; and,
    • institutional care (for those needing personal non-medical 24-hour supervision and up to 2.5 hours of nursing care per day).
• Engagement of applicants and recipients in 2025-2026: ISC through Income Assistance program continued to work with First Nations to address the most pressing needs of Income Assistance clients and communities, while advancing the transfer of the program through New Fiscal Relationship (NFR) and Self-Government agreements. As of 2025-2026, 160 First Nations were participating in NFR agreements,  and one sectoral self-government agreement was under negotiation in Nova Scotia.
  
  For Assisted Living, additional Long-Term and Continuing Care (LTCC) funding announced in 2022 supported Métis governments and organizations in conducting engagement activities, including focus groups, workshops, one-on-one interviews, and direct outreach to Elders and individuals living in LTCC facilities. These activities enabled partners to hear directly from their citizens and communities about their experiences, challenges, and needs in navigating long-term and continuing care. By fall 2025, ISC had received most partners' engagement reports, while some partners also completed additional engagement products, such as video series, to further document their members' experiences and needs. Although full implementation of a co-developed LTCC framework is no longer planned due to shifting priorities, ISC continues to review these engagement findings to inform future work in the LTCC space. Additional funding announced in 2022 also supported 19 short-term capacity-building projects, many of which were completed in 2025-2026, to increase partners' capacity to participate in LTCC activities. These projects engaged First Nations, Inuit, and Métis individuals and communities and included developing culturally safe LTCC training curricula, creating program resources, and delivering community information sessions.

Departmental Results Framework

Link to departmental result:

• Indigenous Peoples are physically well
• Indigenous Peoples are mentally well
• Indigenous Peoples have access to quality federally funded health services
• Indigenous Peoples are culturally safe and socially well

Link to the department's Program Inventory:

• Income Assistance
• Home and Long-Term Care

Results achieved:

ISC continued to ensure eligible individuals living on reserve had access to essential income supports by funding the delivery of Income Assistance in 547 First Nations communities and supporting employment readiness services, including the delivery of  Case Management and Pre-Employment Supports to 303 First Nations communities (excluding Ontario). The Department also continued to support greater First Nations autonomy by transitioning communities away from set funding agreements, providing increased flexibility to allocate funding according to locally identified priorities. As a result, eligible individuals continued to have access to Income Assistance in 100% of communities served by the program across participating regions (Alberta, Atlantic, British Columbia, Manitoba, Ontario, Quebec, Saskatchewan, Yukon Territory). Based on the most recent validated program data (2023-2024), 137,508 clients and dependents received income support to help meet their basic living expenses, while 9,594 beneficiaries accessed case management and pre-employment supports to improve their readiness for employment. Updated 2024-2025 and 2025-2026 results will be reported once program data have been collected, validated, and finalized.

ISC continues to advance the improvements to the Assisted Living Program and is currently developing a new data strategy and key performance indicators to strengthen future performance measurement and program oversight. The Department also reduced the number of communities operating under set funding agreements from 53 to three, providing participating First Nations with greater flexibility and autonomy to allocate funding according to locally identified needs and priorities. This shift responds to feedback received through the Long-Term and Continuing Care engagement and co-development process and supports more community-driven delivery of Assisted Living services on reserve.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• The Office of the Auditor General of Canada initiated an audit of the New Fiscal Relationship initiatives in 2025-2026 which is expected to be completed in May 2026.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Income Assistance Program is expected to be completed in November 2026.
• The Cluster Evaluation of the Home and Long-Term Care Program is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an allocation of funding:
  • for Indigenous governance and capacity;
  • from the New Fiscal Relationship grant due to lower than anticipated number of Grant recipients. The unused grant funding is returned to the programs to be made available to First Nations via other funding mechanisms; and,
  • to meet departmental priorities.
• unused funds at year-end will return to the fiscal framework.

Note: The 2025-2026 actual spending of this transfer payment in the 2025-2026 Public Accounts is $1,221,709,792. The difference of $163,427.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2021-2022

Funding Details

• Listing in the Public Accounts: Grants and Contributions to support First Nations Elementary and Secondary Educational Advancement
• Name of program terms and conditions: Grants and Contributions to support First Nations Elementary and Secondary Educational Advancement
• Type of transfer payment: Grants and Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of this transfer payment program is to  provide funding supporting First Nations control of First Nations' education and the delivery of kindergarten to grade 12 educational services for all eligible students ordinarily living on reserve.
  
  The program's objective is to provide predictable and flexible funding based on the respective provincial funding model with adaptations for funded First Nations students to receive a quality, linguistically and culturally relevant education that support their needs. It also aims to support models for First Nations to have control of First Nations education through regional education models with an ultimate goal to improve educational outcomes for First Nations students.
• Engagement of applicants and recipients in 2025-2026: ISC continued to engage with First Nations partners to advance shared priorities across elementary and secondary education, adult education, and regional education service delivery. Engagement with the Chiefs of Ontario included a joint discussion panel on supporting adult learners, annual strategic planning to refine priorities under the co-developed Ontario Bilateral Education and Learning Table five-year strategic plan, and ongoing collaboration on education infrastructure priorities. Nationally, ISC collaborated with the Assembly of First Nations (AFN) to support First Nations education priorities through the work of the Chiefs Committee on Education, the National Indian Education Council, and the AFN's Annual Education Forum.
  
  Through the Education Partnerships Program, targeted engagement and investment enabled First Nations and mandated organizations to strengthen partnerships across school systems, build administrative capacity, deliver education services, and work towards regional education agreements. In 2025-2026, ISC renewed Regional Education Agreements with the Manitoba First Nations School System and the Peter Ballantyne Cree Nation, in Northern Saskatchewan, supporting approximately 3,000 students and 2,100 students, respectively.
  
  ISC also launched a national bilateral engagement process that generated First Nations' recommendations on all aspects of ISC support for adult education, including opportunities to further refine ISC's performance measurement approaches to better reflect adult learners in education program data and reporting.

Departmental Results Framework

Link to departmental result:

• Indigenous students are progressing in their education

Link to the department's Program Inventory:

• Elementary and Secondary Education

Results achieved:

ISC supported over 120,000 First Nations students ordinarily resident on reserve. This included 11,710 kindergarten students, 47,779 students in elementary grades, and 61,330 students in secondary grades who attended First Nations, provincial, federal, and private schools, and benefited from a broad range of education supports. 102 before- and after-school programs were offered by First Nations, supporting 9,259 students, 499 programs provided at least one subject in a First Nations language, and 511 programs provided culturally- or land-based learning. Additionally, 41,111 students benefited from school food programming, and 10,100 students were supported with Individual Education Plans through the High-Cost Special Education Program.

ISC continued to support the development and implementation of regional education agreements (REAs), with 12 agreements signed and 10 remaining active across British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, and New Brunswick, supporting over 30,000 students.

Since the implementation of new adult education programming for adult learners on reserve in 2022-2023, the number of adult learners on reserve returning to upgrade or complete secondary school more than doubled to 6,809, reflecting increased participation in community-led education programs. Adult learners of all ages, including those aged 21 to 39 and seniors, were supported, helping mitigate the intergenerational impacts of the residential school system. This programming was further expanded to the Yukon and Northwest Territories to support additional adult learners.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of Elementary and Secondary Education and Education Facilities was completed in 2025-2026. Overall, the audit found elements of a management control framework were in place, including documented roles and responsibilities, national and regional communication channels, funding allocation processes, and performance frameworks. While these foundational elements were in place, several areas where management control practices and processes could be improved were identified. These included documenting coordination processes, formalizing the risk and control framework, reviewing and updating school prioritization rankings, explaining calculations for operations and maintenance, reviewing performance information profiles, and better demonstrating the impact of infrastructure investments on education outcomes.The audit resulted in six recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Elementary and Secondary Education Program is expected to be completed in November 2026.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an incremental funding provided through Supplementary Estimates for the First Nations Elementary and Secondary Education Program; and
• an allocation of funding:
  • to the New Fiscal Relationship grant due to higher than anticipated expenditures; and
  • to meet departmental priorities.

Timeframe

• Start date: 2019-2020
• End date: Ongoing
• Fiscal year for terms and conditions: 2022-2023

Funding Details

• Listing in the Public Accounts: Grants and Contributions to support the First Nations Post-Secondary Education Strategy
• Name of program terms and conditions: Grants and Contributions to support the First Nations Post-Secondary Education Strategy
• Type of transfer payment: Grants and Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: Funding provided through the First Nations Post-Secondary Education Strategy supports access to and participation in post-secondary education. The suite of programming under the First Nations Post-Secondary Education Strategy consists of four components:
  • The Post-Secondary Student Support Program provides non-repayable financial support for First Nations students to advance towards a recognized post-secondary education credential, as prioritized and directed by First Nations;
  • The University and College Entrance Preparation Program provides non-repayable financial support for First Nations students who are enrolled in accepted university and college entrance preparation programs to enable them to attain the academic level required for entrance into degree and diploma credit programs, as prioritized and directed by First Nations;
  • The Post-Secondary Partnerships Program provides funding to support First Nations to define their own partnerships with institutions to increase the availability of post-secondary education programs tailored to First Nations' cultural and educational needs. It is proposal-driven and provides funding to First Nations established post-secondary education institutions and First Nations-directed community-based programming; and
  • The First Nations Adult Secondary Education mechanism provides funding for First Nations learners to access resources and services to complete eligible adult education programs for secondary education, equivalency or upgrading of existing secondary-level education.
• Engagement of applicants and recipients in 2025-2026: ISC continued to engage with First Nations partners to advance shared priorities in post-secondary education, including completing engagement with First Nations partners on refinements to the First Nations Post-Secondary Education Strategy and the program's Terms and Conditions.
  
  ISC held joint discussions with the Chiefs of Ontario through the Ontario Bilateral Education and Learning table on several aspects of data sharing and performance measurement, including providing national and regional data on fields of study in post-secondary education, investigating a cross-program data strategy to track the full learner journey, and advancing alignment of post-secondary education reporting mechanisms with partner needs and realities. Additionally, ISC worked with First Nations funding recipients to submit and finalize outstanding program reports to strengthen program reporting. Key strategies included distributing job aids and fact sheets, prioritizing email outreach and personalized phone calls, hosting in-person meetings, and providing support and clear reporting expectations.

Departmental Results Framework

Link to departmental result:

• Indigenous students are progressing in their education

Link to the department's Program Inventory:

• Post-Secondary Education

Results achieved:

ISC supported 16,650 First Nations students to attend post-secondary educations, of whom 11,573 were women and 5,077 were men. 90% of eligible students received the funding they applied for, and 898 students were funded for university and college entrance preparation. The total number of funded students represents an increase of 2,599 students from the 2024-2025 reporting year.

Additionally, through the Post-Secondary Partnerships Program, ISC provided proposal-based funding to First Nations, organizations designated by First Nations, and First Nations universities, colleges, and other post-secondary education institutions to increase the availability of university, college, and other post-secondary programs that better meet the needs of First Nations students. In the 2025-2026 reporting year, First Nations institutions reported that 4,222 students had enrolled in courses supported by one of these programs.

Note that performance results correspond to the preceding fiscal year to align with public reporting timelines; therefore, results refer to the 2024-2025 fiscal year.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of Post-Secondary Education is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding:

• from the New Fiscal Relationship grant due to lower than anticipated number of Grant recipients. The unused grant funding is returned to the programs to be made available to First Nations via other funding mechanisms; and
• to meet departmental priorities.

Note: The 2025-2026 actual spending of Contributions to support the First Nations Post-Secondary Education Strategy in the 2025-2026 Public Accounts is $326,788,742.12. The difference of $55,376.00 between the 2025-2026 Public Accounts and DRR is due to the losses in transfer payments.

Timeframe

• Start date: 2019-2020
• End date: Ongoing
• Fiscal year for terms and conditions: 2019-2020

Funding Details

• Listing in the Public Accounts: Grants and Contributions to support the Inuit Post-Secondary Education Strategy
• Name of program terms and conditions: Grants and Contributions to support the Inuit Post-Secondary Education Strategy
• Type of transfer payment: Grants and Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The Inuit Post-Secondary Education Strategy will help close the post-secondary education attainment gap between Inuit and non-Indigenous Canadians through distinctions-based and regionally delivered strategic support. This includes providing direct financial support for Inuit students, complementary programs and services, and governance capacity to support service delivery. Funding for the Inuit Post-Secondary Education Strategy is provided through the following four eligible components:
  • Student financial support: funding to students to support their pursuit of post-secondary education;
  • Programs and Services: funding for activities that are determined based on local needs assessments with the aim of promoting students' pursuit of post-secondary education and the attainment of a credential;
  • Community Engagement: funding for community-level activities on the benefits of post-secondary accreditation and for preparing students leaving for post-secondary education for their experience; and,
  • Governance/National Coordination: funding for the human, information and physical infrastructure necessary to meet local and regional needs.
• Engagement of applicants and recipients in 2025-2026: ISC continued to engage with Inuit partners on proposed amendments to the Nation Post-Secondary Education Strategy and 2026-2027 National Program Guidelines. Additionally, ISC worked with Inuit funding recipients to address outstanding financial and results reporting on 2025-2026 expenditures.

Departmental Results Framework

Link to departmental result:

• Indigenous students are progressing in their education.

Link to the department's Program Inventory:

• Post-Secondary Education

Results achieved:

ISC supported 678 Inuit students through the Inuit Post-Secondary Education Strategy, of whom 494 identified as female and 184 identified as male. While this represents a decrease from the 928 students in the 2024-2025 reporting year, the result remains above the initial target of 200 students per year established under the Inuit Post-Secondary Education Strategy in 2019-2020. Additionally, as a result of support provided by the Inuit Post-Secondary Education Strategy, Inuit organizations established five new formal partnership agreements with service providers.

Note that performance results correspond to the preceding fiscal year to align with public reporting timelines; therefore, results refer to the 2024-2025 fiscal year.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of Elementary and Secondary Education and Education Facilities was completed in 2025-2026. Overall, the audit found elements of a management control framework were in place, including documented roles and responsibilities, national and regional communication channels, funding allocation processes, and performance frameworks. While these foundational elements were in place, several areas where management control practices and processes could be improved were identified. These included documenting coordination processes, formalizing the risk and control framework, reviewing and updating school prioritization rankings, explaining calculations for operations and maintenance, reviewing performance information profiles, and better demonstrating the impact of infrastructure investments on education outcomes. The audit resulted in six recommendations. Management has accepted the recommendations and has developed a management action plan to address them.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of Post-Secondary Education is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding to meet departmental priorities.

Timeframe

• Start date: 2017-2018
• End date: Ongoing
• Fiscal year for terms and conditions: 2020-2021

Funding Details

• Listing in the Public Accounts: Grants and Contributions to support Urban Programming for Indigenous Peoples
• Name of program terms and conditions: Grants and Contributions to support Urban Programming for Indigenous Peoples
• Type of transfer payment: Grants and Contributions
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: This program contributes towards reconciliation with Indigenous Peoples through improved coordination, supporting coalitions, and the broadening and strengthening of programming by identifying and addressing local needs of all Indigenous Peoples in urban centres.
  
  Urban Programming for Indigenous Peoples (UPIP) funds and supports activities and infrastructure projects for Indigenous organizations to serve clients, and to deliver effective culturally appropriate programs or services to Indigenous Peoples in urban centres as well as invest in local stakeholder coalitions across Canada. It also provides opportunities for greater federal coordination of programming and supports research and pilot projects to better understand the urban Indigenous context.
• Engagement of applicants and recipients in 2025-2026: Urban Programming for Indigenous Peoples (UPIP) continued the co-development of its performance framework, building on engagement conducted with Indigenous partners from 2022 to 2024. Feedback gathered from ongoing discussions with Indigenous partners and data and results questionnaire distributed to current and former recipients informed the development of a draft Indigenous-led and co-developed performance framework. In parallel, the ISC-led UPIP evaluation was completed and published in summer 2025, with support from a Technical Advisory Committee that provided Indigenous perspectives and expertise. Following the evaluation, the draft performance framework, logic model, and performance indicators were reviewed and revised to align with departmental reporting requirements, while incorporating key elements of the Indigenous-led approach, resulting in a revised draft completed in Spring 2026.

Departmental Results Framework

Link to departmental result:

• Indigenous Peoples are culturally safe and socially well

Link to the department's Program Inventory:

• Urban Programming for Indigenous Peoples

Results achieved:

Urban Programming for Indigenous Peoples (UPIP) implemented a streamlined direct service delivery model, transitioning from direct funding agreements with multiple recipients to funding through the National Association of Friendship Centres and the Ontario Federation of Indigenous Friendship Centres. Through this model, the program directly supports the Friendship Centre Movement in the continued delivery of culturally appropriate programs and services that increase organizational capacity, address local service gaps, and improve access to supports for Indigenous peoples living in urban centres, including employment and skills development, mental health, cultural programming, and services for children, youth, adults, and Elders. Additionally, UPIP continued to provide support to existing infrastructure projects initiated under previous funding commitments.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of Urban Programming for Indigenous Peoples is expected to be completed in March 2030.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an allocation of funding to meet departmental priorities; and
• the deferral of funding to future years for Indigenous urban and rural housing (Budget 2023).

These funds could not be spent in 2025-2026 and are expected to be reprofiled to future years when they will be available for the intended purposes.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2021-2022

Funding Details

• Listing in the Public Accounts: Grants for the Operation Return Home claims settlements   
• Name of program terms and conditions: Grants for the Operation Return Home claims settlements
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: This program allows for the payment of settlements to address claims related to flooding of the Dauphin River, Little Saskatchewan, Lake St. Martin, ensuring that these are resolved with finality through faster and more transparent processes.
• Engagement of applicants and recipients in 2025-2026: ISC officials maintained regular and ongoing engagement with First Nation recipients to support settlement agreement implementation, address emerging issues, and facilitate informed decision-making. Consultation activities included meetings with First Nation leadership and administration, quarterly discussions with the Province of Manitoba, engagement with technical experts, participation in working groups, and collaboration with legal and departmental partners. Officials also worked closely with recipients to develop planning tools, review financial obligations, assess funding pressures, and ensure alignment between federal and provincial commitments. Through these engagements, recipients were able to provide input on priorities, implementation challenges, technical requirements, and funding needs.
  
  For Dauphin River First Nation, consultations focused on advancing the Comprehensive Settlement Agreement, supporting the Community Approval Process, addressing flood risk considerations through a Technical Working Group, initiating Duty to Consult activities, and confirming financial responsibilities and funding requirements.
  
  For Lake St. Martin First Nation, consultations focused on lands identified in the Agreement-in-Principle, technical and mapping requirements, financial planning, and discussions regarding potential land renegotiation.
  
  For Little Saskatchewan First Nation, ISC officials continued to support implementation of the obligations contained in the Agreement-in-Principle (AIP) and advance discussions related to the Comprehensive Settlement Agreement (CSA). Consultation activities included ongoing meetings with First Nation leadership and representatives, collaboration with the Regional CHRT 41 team, and engagement with the Nation's selected project team to support planning for the proposed First Nation Child and Family Services Prevention Building.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have sustainable land management and infrastructure

Link to the department's Program Inventory:

• Community Infrastructure

Results achieved:

ISC continued to advance progress towards Comprehensive Settlement Agreements (CSA) with Dauphin River First Nation, Lake St. Martin First Nation, and Little Saskatchewan First Nation.

Significant progress was made toward advancing the Dauphin River First Nation Settlement Agreement. Key governance, consultation, technical, and funding requirements were advanced to position the Nation for successful execution of the Community Approval Process and the CSA. As a result, governance and implementation readiness were strengthened, technical issues affecting reserve lands are being addressed through a dedicated working group, consultation obligations were advanced, and funding certainty was improved. Additionally, these actions reduced barriers to implementation and supported continued progress toward reserve creation and settlement agreement completion.

Progress continued on the Lake St. Martin First Nation CSA, with the Nation maintaining focus on the lands identified in the Agreement-in-Principle (AIP) and advancing discussions, technical analysis, and financial planning needed to support informed decision-making and next steps in the settlement process. Through this work, decision-makers acquired access to more accurate technical, financial, and mapping information, improving readiness for future negotiations and settlement implementation. These efforts strengthened alignment among partners and provided greater clarity on potential pathways forward regarding the lands contemplated in the AIP.

Progress was maintained toward finalizing the Little Saskatchewan First Nation CSA and fulfilling commitments under the AIP. The Nation advanced planning for a new First Nation Child and Family Services Prevention Building, while ongoing engagement supported settlement implementation, project development, and alignment on financial and legal obligations. The Nation advanced a community priority project reflective of current needs, while maintaining progress toward settlement implementation. Clarity was provided regarding Crown commitments, funding responsibilities, and the implications of any potential AIP renegotiation requests. Ongoing engagement strengthened readiness for future decision-making concerning CSA execution and community infrastructure planning.

Evaluation and audits

Findings of audits completed in 2025-2026:

• An Audit of Elementary and Secondary Education and Education Facilities was completed in 2025-2026. Overall, the audit found elements of a management control framework were in place, including documented roles and responsibilities, national and regional communication channels, funding allocation processes, and performance frameworks. While these foundational elements were in place, several areas where management control practices and processes could be improved were identified. These included documenting coordination processes, formalizing the risk and control framework, reviewing and updating school prioritization rankings, explaining calculations for operations and maintenance, reviewing performance information profiles, and better demonstrating the impact of infrastructure investments on education outcomes. The audit resulted in six recommendations. Management has accepted the recommendations, and has developed a management action plan to address them.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026
• The Cluster Evaluation of Community Infrastructure (Housing on-Reserve Program, Education Facilities, Other Community Infrastructure and Activities Program, Water and Wastewater Infrastructure) is expected to be completed in 2028-2029.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects an allocation of funding to meet departmental priorities.

Timeframe

• Start date: 2022-2023
• End date: Ongoing
• Fiscal year for terms and conditions: 2022-2023

Funding Details

• Listing in the Public Accounts: Grants to support child and family services coordination agreements and related fiscal arrangements
• Name of program terms and conditions: Grants to Support Child and Family Services Coordination Agreements and Related Fiscal Arrangements: Interim Terms and Conditions
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The purpose of this grant program is to fund and support the implementation of Indigenous laws under the framework of An Act respecting First Nations, Inuit and Métis children, youth and families (the Act). This is, in part, accomplished through coordination agreements and supporting fiscal arrangements.
  
  The grant provides funding to Indigenous governing bodies for sectoral self-government, specifically in the domain of child and family services. The Indigenous group, community or people will define indicators and report on results that it deems valuable.
• Engagement of applicants and recipients in 2025-2026: ISC officials maintained regular engagement with Indigenous governing bodies through coordination committees, implementation committees, technical working groups and bilateral meetings established under coordination agreements. Engagement also continued with provincial and territorial governments and federal partners to support implementation planning, resolve operational issues, administer related fiscal arrangements, monitor implementation progress and advance collaborative governance.

Departmental Results Framework

Link to departmental result:

• Indigenous Peoples are culturally safe and socially well

Link to the department's Program Inventory:

• Child and Family Services

Results achieved:

ISC continued to fund and support the implementation of Indigenous laws under the framework of An Act respecting First Nations, Inuit and Métis children, youth and families (the Act). Implementation continued across 15 executed coordination agreements, with Indigenous governing bodies receiving grant funding through related fiscal arrangements to support the exercise of jurisdiction under the Act. One new coordination agreement was signed with the Tŝilhqot'in National Government on April 1, 2025, further expanding the number of Indigenous governing bodies implementing their own child and family services laws.

Governance structures established under the agreements, including coordination committees, implementation committees and technical working groups, continued to support collaborative oversight, implementation planning, coordinated decision-making and the timely resolution of operational issues.  As a result, Indigenous governing bodies continued to advance the implementation of their child and family services laws through sustained implementation support, timely administration of grant funding and strengthened collaboration with federal, provincial and territorial partners. These efforts contributed to the continued operationalization of Indigenous jurisdiction, greater continuity in service delivery and ongoing support for culturally appropriate child and family services for Indigenous children, youth and families.

Progress was demonstrated through the continued implementation of 15 executed coordination agreements and related fiscal arrangements, the conclusion of one additional coordination agreement during the reporting period, the ongoing operation of implementation governance committees, and regular engagement with Indigenous governing bodies and implementation partners to monitor progress and address emerging implementation priorities.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• An Audit of the First Nations Child and Family Services Program is underway and expected to be completed by June 2027.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of the Implementation of the Act Respecting First Nations, Inuit and Métis Children, Youth and Families is underway and expected to be completed in July 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects:

• an incremental funding provided through Supplementary Estimates to advance the implementation and operationalization of Indigenous children and family services' laws;
• an allocation of funding from Contributions to provide children, youth, young adults, families and communities with prevention and protection services;
• unused funds at year-end that will return to the fiscal framework; and
• the deferral of funding to future years for advancing the implementation and operationalization of Indigenous children and family services' laws.

These funds could not be spent in 2025-2026 and are expected to be reprofiled to future years when they will be available for the intended purposes.

Timeframe

• Start date: Ongoing
• End date: Ongoing
• Fiscal year for terms and conditions: 2017-2018

Funding Details

• Listing in the Public Accounts: (S) Indian Annuities Treaty payments (Indian Act)
• Name of program terms and conditions: not availableN/A (Historic Treaty Annuity Payments under the Indian Act)
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: Refer to section 72 of the Indian Act.
• Engagement of applicants and recipients in 2025-2026: The Treaty Annuity Payment service fulfills the government's obligations to First Nation Bands and individuals under the Historic Treaties (Robinson Treaties and Numbered Treaties), which provide for annuities in perpetuity. Consequently, the government remains permanently responsible for Treaty Annuities. During the COVID-19 pandemic, while traditional treaty payment events were paused, alternative payment methods were piloted. These options continue to be available alongside the return of traditional events, allowing communities and individuals to choose their preferred payment method.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports

Results achieved:

ISC continued to meet its treaty obligations by delivering treaty annuity payments to eligible treaty beneficiaries across Canada. Despite disruptions caused by wildfires, the Department visited 79% of eligible First Nation communities and issued $2,160,802 in cash treaty annuity payments to 96,817 individuals, excluding payments made by cheque or mail. These efforts ensured that eligible treaty signatories continued to receive their annuities and maintained access to benefits arising from Canada's treaty commitments. Delivery of payments and financial information was tracked through the Trusts, Lands, and Treaty System to support accountability and program administration.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.
• The Evaluation of Individual Affairs is expected to be completed in November 2027.

Explanation of variances

The difference between 2025-2026 Planned Spending and Actual Spending primarily reflects lower than anticipated expenditures for Indian Annuities Treaty payments (Indian Act).

Timeframe

• Start date: 1927 - Practice that had commenced to pay non-treaty bands in British Columbia in lieu of treaty annuity payments.
  1965 - A grant was created to regularize the practice established in 1927, entitled: Grants to British Columbia Indian bands in lieu of a per capita annuity
• End date: Ongoing
• Fiscal year for terms and conditions: 2013-2014

Funding Details

• Listing in the Public Accounts: Grants to British Columbia Indian bands in lieu of a per capita annuity
• Name of program terms and conditions: not availableN/A (British Columbia Special Payment)
• Type of transfer payment: Grants
• Type of appropriation: Estimates

Purpose and Objectives

• Purpose and objectives of transfer payment program: The grant to First Nations bands in British Columbia in lieu of a per capita annuity provides $300,000 to be split on a per capita basis among the First Nations bands in British Columbia that did not sign one of the Numbered Treaties with the Crown based on a per capita basis.
  
  The grant is paid into the First Nations Band Funds held in trust by Canada on a per-capita basis to provide additional services in lieu of treaties or annuities.
• Engagement of applicants and recipients in 2025-2026: ISC continued to provide the annual $300,000 grant to eligible First Nations bands in British Columbia that are not signatories to either the Numbered Treaties or Modern Treaties with the Crown, with funding allocated on a per capita basis in lieu of treaty annuities. Although no engagement activities were undertaken in 2025-2026, the program maintained its ongoing commitment to providing this financial support, ensuring eligible First Nations continued to receive equitable funding. Payments were tracked through the Department's financial management system to support accountability and effective program administration.

Departmental Results Framework

Link to departmental result:

• Indigenous communities have governance capacity and support for self-determination

Link to the department's Program Inventory:

• Indigenous Governance and Capacity Supports

Results achieved:

ISC distributed $300,000 on a per capita basis to all eligible First Nations bands in British Columbia that were not signatories to either the Numbered Treaties or Modern Treaties with the Crown. These payments provided equitable financial support to eligible First Nations and contributed to the Department's ongoing commitments to First Nations in British Columbia. Program delivery and payments were monitored and verified through the Department's financial management system to ensure accountability.

Evaluation and audits

Findings of audits completed in 2025-2026:

• No audits were completed in 2025-2026.
• There are no future internal audits currently planned for this program.

Findings of evaluations completed in 2025-2026:

• No evaluations were completed in 2025-2026.

Explanation of variances

Not applicable.