Canada Submits $35.5 Billion First Nations Child Welfare Reform Plan to Human Rights Tribunal

Government Unveils Comprehensive Reform Plan

The Canadian government, led by Prime Minister Mark Carney, announced on Monday, December 22, 2025, a detailed plan to the Canadian Human Rights Tribunal (CHRT) for the reform of the First Nations Child and Family Services (FNCFS) program. The proposal includes a significant investment of $35.5 billion, allocated through 2033-34, with an additional ongoing commitment of $4.4 billion annually thereafter. Indigenous Services Minister Mandy Gull-Masty shared details of the plan, emphasizing its goal to keep First Nations children connected to their communities, culture, and families.

Historical Context of Discrimination and Previous Settlements

This latest development follows nearly a decade after the CHRT ruled that Ottawa had racially discriminated against First Nations children by underfunding the FNCFS system. The origins of this dispute trace back to a 2007 joint human rights complaint filed by the Assembly of First Nations (AFN) and the First Nations Child and Family Caring Society. In January 2016, the Tribunal issued a landmark ruling confirming this discrimination.

The path to reform has involved several significant agreements. In April 2023, a $23.34 billion compensation agreement was reached to address past harms, which received Federal Court approval on October 24, 2023, and was confirmed by the CHRT on July 26, 2023. This compensation is distinct from the long-term reform funding. Earlier attempts at a comprehensive reform deal, including a $47.8 billion offer over 10 years, were rejected by First Nations chiefs in 2024. As of December 2, 2025, over $267 million in compensation has been disbursed to eligible Class Members.

Details of the Government's Proposed Reform

The government's plan outlines a national framework that supports regional agreements, allowing First Nations to tailor child and family services to their distinct realities. This approach aims to strengthen families and prevent the separation of children from their communities. The funding, if approved by the Tribunal, will be secured in a legal order to ensure its protection from future governmental changes. The $35.5 billion commitment includes an $8.5 billion Final Agreement signed in early 2025 with the Chiefs of Ontario and Nishnawbe Aski Nation for reforms in Ontario. The government is actively pursuing regional agreements, with seven regions reportedly interested, and aims to finalize all deals by September 2026.

Competing Proposals and First Nations Perspectives

In parallel, the National Children's Chiefs Commission (NCCC) and the First Nations Child and Family Caring Society have also submitted a competing plan to the CHRT. This alternative proposal estimates a need for $50 billion over 10 years to achieve comprehensive reform. Cindy Blackstock, Executive Director of the First Nations Child and Family Caring Society, has been a prominent advocate throughout this process. The CHRT had ordered all parties to develop and submit their plans for national long-term reform by December 20, 2025. National Chief Cindy Woodhouse Nepinak of the Assembly of First Nations has expressed support in principle for the NCCC and Caring Society's plan, emphasizing the importance of collaborative efforts and the commitment to fight for First Nations children if necessary.