Indigenous programs are facing over $2 billion in budget reductions, but they are not bearing the brunt of the proposed government-wide spending cuts in Prime Minister Mark Carney’s first budget. The 2025 spending plan of the Liberal minority government, presented in the House of Commons on Tuesday, outlines a two per cent decrease in budgets for both Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada. This translates to an overall reduction of nearly $2.3 billion by the spring of 2030.
The initial warnings in July of potential “difficult decisions” and a possible 15 per cent cut over three years have not materialized, with the actual reduction being significantly less. Additional funding commitments include $2.3 billion over three years for safe water in First Nations and $10.1 million over the same period for Indigenous consultations on expedited major projects.
Despite Finance Minister François-Philippe Champagne’s mention of a “generational investment” ahead of the budget release, the focus on Indigenous issues within the budget remains relatively modest. The government emphasizes its commitment to reconciliation, highlighting the essential nature of programs delivered by the mentioned organizations and the need for increased efficiency with a two per cent savings goal.
Champagne indicated that the government is striving to strike a balance between savings and safeguarding crucial aspects for Canadians. However, the budget falls short of providing the substantial financial injection that Indigenous leaders had hoped for to address the estimated $425-billion infrastructure gap in their communities.
The budget indicates a continuation of past spending commitments, such as the confirmation of $2.8 billion remaining from the initially promised $4.3 billion for Indigenous housing. Furthermore, there are pledges to advance Indigenous tax jurisdiction and negotiate tax agreements on various products with interested Indigenous governments.
There are concerns among Indigenous advocates about expiring programs and the lack of clarity on their renewal. The budget mentions a top-up for the Urban Programming for Indigenous Peoples this fiscal year but does not specify the Indigenous programs facing budget cuts.
Additionally, there are allocations for initiatives like the Arctic Infrastructure Fund and funds to streamline regulatory processes in Canada’s North. Indigenous groups are eligible for support from the new Build Communities Strong Fund, which promises $51 billion over a decade. The budget names specific projects, including the Inuit Nunangat University and the Lac La Ronge Indian Band Kitsaki Hall in Saskatchewan, as recipients of Ottawa’s initial backing.
The minority Liberal government requires support from three major opposition parties for the budget to pass in the House of Commons, with the possibility of a winter election looming if that backing is not secured.