AFN, federal government confirm $47.8B child welfare reform settlement offer

The Assembly of First Nations confirmed Thursday it has secured a commitment from Canada for $47.8 billion in funding over 10 years for long-term reform of First Nations child and family services.

AFN National Chief Cindy Woodhouse Nepinak made the announcement on the final day of the AFN's annual general assembly in Montreal, two days after she told chiefs in attendance there was an offer on the table but that she could not yet discuss it publicly.

"The funding will lead to improved supports for First Nations children and their families through fundamental reforms to the program," said Woodhouse Nepinak said at a news conference.

"We're trying to change our broken system… We are moving towards prevention rather than apprehension."

Indigenous Services Minister Patty Hajdu attended the news conference. 

"It's an attempt to bring some peace to families and to communities and to First Nations peoples who have experienced the tool of colonialism through what I would say is the most cruel policy, which is to separate families," she said.

The settlement offer is worth more than double what was originally promised in 2021. Woodhouse Nepinak said chiefs and communities can expect to see copies of the proposed settlement Thursday. 

Ontario Regional Chief Abram Benedict, who was part of the negotiating team, shed some light on its contents, saying the agreement brings "capital to the forefront."

"There is also funding available for housing," he said.

"If you do not have a safe home to live in, it is difficult to ensure that our families remain together, our families are supported and are safe."

Alvin Fiddler, grand chief of the Nishnawbe Aski Nation, which represents 49 First Nations in northern Ontario, said an important aspect of the offer is adjusted funding for remote First Nations.

"Today's a great day for our children," he said.

The offer stems from a 2016 ruling from the Canadian Human Rights Tribunal that found Canada engaged in wilful and reckless discrimination against First Nations children and families on reserve and in Yukon by failing to provide them with the same level of child and family services provided elsewhere.

In 2019, the tribunal ordered Canada to pay the maximum human rights penalty of $40,000 per child and family member. That part of the settlement — $23 billion in compensation — was approved last year.

In addition to compensation, there was an agreement-in-principle promising an additional $20 billion to reform First Nations child and family services. It is unclear how this offer differs from the agreement-in-principle. 

Throughout July, August and September, the AFN will meet with First Nations leaders at regional engagement sessions to discuss the details of the draft settlement agreement before putting it to a ratification vote at a special assembly in September.