First Nations leaders say Canada Strong Fund overlooks Indigenous communities

First Nations leaders in Canada say the federal government has failed to put Indigenous infrastructure and self-determination at the centre of its latest economic plan. The criticism comes despite Ottawa unveiling more than C$37 billion in new investments through the Canada Strong Fund and related measures.

Federal Finance and National Revenue Minister François-Philippe Champagne delivered the spring economic update on 28 April under the banner Canada Strong for All. The package includes a C$25 billion sovereign wealth fund, workforce mobilisation measures and C$7 billion for affordable housing. The Assembly of First Nations (AFN) says none of those new investments are distinctions-based (funding allocated separately to First Nations, Inuit and Métis as distinct peoples).

A separate C$4.3 billion envelope was set aside for First Nations education, Inuit food security and Indigenous child welfare. Reporting by The Canadian Press noted much of that funding had already been announced, while C$2.8 billion for Indigenous housing was reallocated from the Canada Mortgage and Housing Corporation.

“Canada’s proposed path to building strong does not appear to involve First Nations” AFN National Chief Cindy Woodhouse Nepinak said in a statement responding to the update.

The specific commitments include C$601 million in 2026-27 for on-reserve elementary and secondary education, C$794 million for the Non-Insured Health Benefits Program, C$630 million over two years for Indigenous mental wellness services and C$400 million over five years for primary care in rural and remote on-reserve communities. The update also included C$700 million over six years to implement legislation affirming First Nations, Inuit and Métis control over child welfare systems. A further C$6.3 million was committed to the Northern Isolated Communities Initiatives fund to support food security in Inuit communities.

The AFN has estimated the cost of closing the First Nations infrastructure gap at C$349 billion. The previous Trudeau government had committed to closing that gap, although the timeline has remained a continuing point of contention.

Another concern for First Nations leaders is the planned reduction in funding for specific claims research. Funding is set to fall to C$4 million in April 2026, well below the C$35 million sought by First Nations.

Union of British Columbia Indian Chiefs (UBCIC) research director Jody Woods warned in a March letter to Prime Minister Mark Carney that the reduction would “critically impair essential research work nationwide” and further delay the resolution of lawful claims, according to The Canadian Press.

The update also includes C$8 million for Missing and Murdered Indigenous Women and Girls (MMIWG) work, C$1 million for the National Family and Survivors Circle and C$59 million this year and again next year to address the legacy of residential schools.

UBCIC Grand Chief Stewart Phillip said any major projects supported by the new fund that proceed without the free, prior and informed consent of First Nations would undermine Indigenous title and rights. “At a bare minimum, there must be clear and enforceable safeguards to ensure public funds are not deployed in ways that violate Indigenous sovereignty. Anything less is complicity” he told The Globe and Mail.

Watch: What is the Canada Strong Fund?

CBC News’ “About That” segment explains the Canada Strong Fund, the country’s first national sovereign wealth fund, announced by the Carney government.