Federal budget’s $918M for Indigenous housing and infrastructure falls far short of what advocates say is needed

The budget commits $918 million over five years to support narrowing the housing and infrastructure gaps in Indigenous communities. However, that falls significantly short of the investments Indigenous leaders say are needed to close the infrastructure gap between Indigenous and non-Indigenous communities. It’s a fraction of what the Assembly of First Nations (AFN) has said is needed; it estimated that housing alone would require more than $138 billion over seven years.

“Reports from the Auditor General on housing and policing demonstrates that long-term investment and fundamental shifts in approach are required over an extended period and we did not see that today,” AFN National Chief Cindy Woodhouse-Nepinak told the Star. 

“First Nations priorities are Canadian priorities and, of course, given our special relationship, we expect a First Nations component to each of the budget’s major investments announced today.”

In a report last year to the parliamentary standing committee on finance, the AFN said its research concluded that more than $349 billion was required to meet Canada’s commitment to close the infrastructure gap by 2030, and to support economic growth and reconciliation.

A report by the Chiefs of Ontario stated it would cost $58.9 billion to close the infrastructure gap on reserves in the province.

In a statement, Akwesasne Grand Chief and Acting Ontario Regional Chief Abram Benedict said the federal government needed to invest $39 billion in on-reserve infrastructure this year “to address the infrastructure gap that’s been caused by decades of insufficient funding.”

If Tuesday’s budget had done that, he said, it “would have demonstrated the government keeps its promises and takes the well-being of our people seriously.”

NDP Leader Jagmeet Singh also said Ottawa’s efforts to close the infrastructure gap do not go far enough.

“We’re concerned that this government has not laid out the plan to address the gap in infrastructure and housing funding for Indigenous communities,” Singh told reporters. “That’s a serious concern.”

Woodhouse-Nepinak said the AFN intends to reach out to Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland, as well as members of the opposition parties, to meet with First Nations leadership and “work together for the future economic prosperity for First Nations in Canada.”

The federal government is making other investments in Indigenous economic development, such as winter road projects in Saskatchewan and Ontario, as well as the anticipated Indigenous Loan Guarantee Program, which was first announced in last year’s fall economic statement. That program will allow Indigenous communities to gain equity ownership in natural resource and energy projects, which according to the budget, are expected to reach $525 billion in capital investment in the next 10 years.

The program is a major component of the federal government’s plans to prioritize economic reconciliation. It will make up to $5 billion in loan guarantees accessible to Indigenous governments and their controlled entities for projects in the natural resources and energy industries within their territories that are currently operating. Projects that are not yet in development are not currently eligible for loan guarantees. The government has proposed $16.5 million over two years for the delivery of the program by Natural Resources Canada and the Canada Development Investment Corporation.

Another $388.5 million will be reinvested in existing programs that support economic growth through Indigenous entrepreneurship, Indigenous tourism and clean energy initiatives.

Beyond economic growth, the budget focuses spending on Indigenous youth and education initiatives. That includes $649.5 million over two years to improve elementary and secondary school education on reserves and more than $545 million over three years for on-reserve infrastructure for primary and secondary schools.

In addition, the budget proposes nearly $243 million over three years to increase access to post-secondary education for First Nations students through the Post-Secondary Student Support Program. This builds on a 10-year, $487.5-million investment in the program since 2019.

While Woodhouse was happy to see renewed investments in Indigenous youth and education, she said this funding won’t go far enough to build much-needed schools on reserves, and that bigger investments are needed.

The budget also pledged a significant investment in Indigenous children and youth, with $1.8 billion over 11 years starting in the 2023 fiscal year to support Indigenous communities exercising their jurisdiction over child and family welfare. It builds on a Supreme Court decision in February that ruled Indigenous communities have jurisdiction over child and family services that trumps that of provinces and territories.

The budget commits an additional $167.5 million over two years to ensure Inuit children receive access to health, social and education services starting in the 2023 fiscal year. It proposes to spend $1.1 billion on First Nations and Inuit health care, as well as an additional $630 million to improve Indigenous access to mental health services and $168 million to combat racism against Indigenous people in the health-care system.

Other Indigenous initiatives in this year’s budget included food security in the north, access to culturally important foods, Indigenous justice — including Indigenous policing — and supporting emergency management and preparedness related to forest fires and climate disasters.