Federal Budget 2025 - Assembly of First Nations

Summary:

On November 4, 2025, Minister of Finance and National Revenue François-Philippe Champagne delivered Budget 2025, titled “Canada Strong.”
Budget 2025 commits $141.4 billion in new spending over the next five years.
Unlike previous years, this Budget has no Indigenous chapter.
The Budget includes a 2% reduction for both Indigenous Services Canada (ISC) and Crown-Indigenous Relations and Northern Affairs (CIRNA), which is less than the broad 15% reduction faced by other government departments.
The Budget makes some commitments to First Nations, particularly around infrastructure and major project consultation.
The Budget has significant gaps in social areas, including no specific First Nations investments in health, training, language, or Truth and Reconciliation.
The Budget will undergo a vote in the House of Commons on November 17, 2025. The Government will need 172 votes to pass the Budget.

On November 4, 2025, Minister of Finance and National Revenue François-Philippe Champagne delivered Budget 2025, titled “Canada Strong.” The Federal Government positioned the document as an investment budget designed to cut operational costs while diversifying trade and boosting productivity. In total, the Budget showed a deficit of $78.3 billion, with $141.4 billion in new spending over the next five years.

The Budget is different from previous years in that it does not include an Indigenous-specific chapter. The AFN advocated in its Pre-Budget Submission (PBS) for investments to uphold First Nations rights and support long-term prosperity for all, including: Building the Future through Capital Investments, Uplifting Communities through Essential Services, and Growing Self-Determination through Governance. The PBS Summary is available to read online.

The Budget makes some commitments to First Nations, particularly around infrastructure and major project consultation. Key points include

$2.3 billion over three years to renew the First Nations Water and Wastewater Enhanced Program, continuing efforts to eliminate long-term drinking water advisories on reserves and support approximately 800 active projects.
$2.8 billion confirmed from a previous $4.3 billion commitment (2022) for urban, rural, and northern Indigenous housing (no new funding added).
$3 billion remains available for First Nations, Inuit, and Métis housing priorities under local strategies.
A cross-government Indigenous Housing Strategy to be coordinated by the Minister of Indigenous Services.
Canada Infrastructure Bank to triple Indigenous infrastructure investments from $1 billion to $3 billion within its $35 billion portfolio.
Build Communities Strong Fund: Indigenous communities eligible for part of $51 billion over 10 years for community infrastructure.
Arctic Infrastructure Fund: $1 billion over four years for transportation projects (airports, seaports, roads) with dual civilian-military use.
Indigenous Loan Guarantee Program: Doubled from $5 billion to $10 billion, enabling First Nations equity participation in major projects.
$10.1 million over three years for Indigenous consultations on fast-tracked national-interest projects.
$40 million over two years for capacity-building via the Strategic Partnerships Initiative.

The Budget has significant gaps in social areas, including no specific First Nations investment in health, training, language, or Truth and Reconciliation. Although Budget 2025 proposes to introduce legislation and provide $216.6 million per year to make the National School Food Program permanent, further analysis is needed to confirm the funding amount will provide enough for First Nation schools. The Budget states that the government remains committed to reconciliation and will continue to provide the services for which it is legally and constitutionally obligated, including child and family services and primary health care. The Budget also provides continued support for Jordan’s Principle for 2025–26.

Budget 2025 falls short in meeting the urgent and long-term needs identified by First Nations. It lacks new investments in critical areas such as a mental health and addictions treatment, policing, First Nations procurement, and education.

The AFN will continue to advocate for consistent and sustained investments to close the First Nations infrastructure gap, as well as identifying First Nations priorities in advance of the 2026 economic statement and conduct further research and analysis to develop supporting rationale for funding requirements.

Included here is a detailed chart summarizing Budget 2025.

Budget 2025 – Canada Strong

Analysis of Investments

First Nations or Indigenous Capital Investments
Investment Area	Fiscal Year(s) and $ Amount(s)	Reference(s) in Budget	Comments
Federal Initiative on Consultation	$10.1 million over 3-years, starting in 2025-26	Pg. 81-83	This funding will be implemented through the Major Projects Office to support the participation of Indigenous rights-holders in consultation processes throughout the review cycle of national interest projects.
Arctic Infrastructure Fund	$1 billion over 4-years, starting 2025-26	Pg. 137	Investment in major transportation projects in the North with dual use applications for civilian and military use, including airports, seaports, all-season roads, and highways.
Strengthening First Nations Infrastructure Financing and Access to Clean Water	$2.3 billion over 3-years, starting 2026-27	Pg. 158	Renewal of the First Nations Water and Wastewater Enhanced Program to maintain progress on approximately 800 active projects, including those focused on ending remaining water advisories and preventing new ones by upgrading at-risk systems.
Supporting Indigenous Housing and Infrastructure	$2.8 billion	Pg. 159	Building Canada Homes will work with First Nations leadership to determine how this mission-driven organization and the catalyzation of this new modern housing industry can best contribute to First Nations identified needs and priorities.
Investments where Indigenous Peoples may access a proportion or sub-set of the funds
Investment Area	Fiscal Year(s) and $ Amount(s)	Reference(s) in Budget	Comments
Canada’s Infrastructure Bank target for Indigenous Infrastructure	$3 billion	Pg. 159	Canada’s Infrastructure Bank is increasing the target for investments for Indigenous infrastructure from $1 billion to $3 billion across its priority sectors.
Funding for the Department of Women and Gender Equality	$382.5 million over 5-years, starting 2026-27	Pg. 169	Revitalize and stabilize efforts to advance women’s equality in Canada.
	$54.6 million over 5-years, starting 2026-27		Support the 2SLGBTQI+ community sector.
	$223.4 million over 5-years, starting 2026-27		Strengthen federal action on gender-based violence.
Improving Access to Health Care in the Arctic and the North	No funds identified	Pg. 173	Commitment to undertaking a comprehensive assessment of health care and health infrastructure needs in the North, with the goal of identifying innovative ways to increase access to health care in northern communities and reduce medical travel costs through engagement with Northern and Arctic Indigenous Peoples.
Critical Minerals Sovereign Fund	$2 billion starting in 2026/27, on a rolling basis	Pg. 111-112	Funding to Natural Resources Canada to make strategic investments in critical minerals projects and companies, including equity investments, loan guarantees, and offtake agreements. The measure is purported to have disproportionate benefits for Indigenous peoples as workers who reside in areas where mining opportunities exist.
First and Last Mile Fund	$371.8 million over 3-years, starting in 2026/27	Pg. 112; Annex 6	To support the development of critical minerals projects and supply chains with a focus on getting near-term projects into production. Purported to benefit Indigenous people as, “11% of mining’s labour force.”
Agriculture and Agri-Food Canada (AAFC)	$154.7 million over 4-years, starting 2026/27	Pg. 295	AAFC will continue its scientific work in crops and horticulture, animal production, food, biodiversity and environmental sustainability, often in partnership with industry, for projects that are priorities for the sector.
Strategic Partnerships Initiative (ISC)	$40 million over 2-years, starting 2025/26	Pg. 81	Previously announced in August, Canada is providing $40 million over two years starting in 2025-26, to ISC to support Indigenous capacity building and consultation on nation building projects prior to designation under the Building Canada Act.
Policy Announcements
Policy/Investment Area	Reference(s) in Budget	Comments
Bill C-5 Implementation	Pg. 83	The federal government references that meaningful consultation is embedded in Building Canada Act, and they are empowering and supporting opportunities for proactive partnerships with Indigenous Peoples through the Canada Infrastructure Bank’s Indigenous Equity Program, and the Indigenous Loan Guarantee Program.
Advancing Indigenous Tax Jurisdiction Frameworks	Pg. 220	The federal government aims to conclude fuel, alcohol, cannabis, tobacco, and vaping value-added sales tax arrangements with interested Indigenous governments. The government will explore other flexible, opt-in approaches for tax jurisdiction arrangements that continue to advance fiscal relationships and create more opportunities for Indigenous governments to grow their revenues and achieve the goals of their communities.
Canada’s Climate Competitiveness Strategy	Pg. 104-113	Industrial carbon pricing will be reformed and will become the core of the government’s climate strategy as the industrial emissions plan is scrapped. Investments are limited to Clean Economy Investment Tax Credits ($4 million over 4 years), and support for Critical Minerals projects.
Indigenous Housing Strategy	Pg. 159	The Minister of Indigenous Services will coordinate a cross-government Indigenous Housing Strategy following engagement with First Nations on-reserve, Inuit Treaty Organizations, Métis governments, and Modern Treaty holders and Self-Governing Indigenous Governments.
Updating the Oil and Gas Emissions Cap	Pg. 108	Budget 2025 indicates that an oil and gas emissions cap would no longer be required in the presence of effective carbon markets, and the deployment of carbon capture and storage technologies.
Continued and Extended Investment from Previous Budget Announcements
Policy/Investment Area	Reference(s) in Budget	Comments
Fish and Fish Habitat Protection Program	Pg. 269	$72 million in additional funds to renew the Fish and Fish Habitat Protection Program over the next 5-years, supporting First Nations participation in conserving and protection of fish and fish habitat, including inland waters.
Empowering Canadian Fishers and Building Coastal Communities	Pg. 174	$463.3 million over 3-years, starting in 2024/25, for repairs and maintenance of small craft harbours across the country.
Making the National School Food Program Permanent	Pg. 162	$216.6 million per year, starting in 2029/30, to make the National School Food Program Permanent. This program launched in 2024/25 with an initial investment of $1 billion over 5-years.
Funding for First Nations Elementary and Secondary Education	Pg. 274	$155 million for First Nations Elementary and Secondary Education.
Early Learning and Child Care	Pg. 273	$1,535 billion over three years starting in 2027-28 for extending Early Learning and Child Care Agreements.
Bill C-92 Implementation	Pg. 274	Approximately $528 million over 5-years starting in 2025/26 for continued implementation of An Act Respecting First Nations, Métis and Inuit Children, Youth and Families.
Jordan’s Principle	Pg. 274	$1.033 billion in 2025/26 for continued support for Jordan’s Principle.
Urban Programming for Indigenous Peoples	Pg. 274	$60 million in 2025/26 for renewing Urban Programming for Indigenous Peoples.
Sunsetting Programs
Policy/Investment Area	Reference(s) in Budget	Comments
First Nations Emergency Management Response and Recovery Activities on Reserve	Pg. 274, Annex 1	There is no new funding and the investment has been front-loaded instead of spread out. There is nothing currently committed after 2026.
First Nations Negotiation Funding	Pg. 275, Annex 1	There is no new funding identified in the budget with the $5 million ending in 2025/26.
Advancing Indigenous Data Sovereignty	Pg. 274, Annex 1	There is no new funding identified in the budget with $26 million ending in 2025/26.
Additions to Reserve (ATR) Policy Reform	Pg. 274, Annex 1	There is no renewal of the Additions to Reserve (ATR) policy reform and operational capacity funding. This means that it is highly unlikely that Canada will advance its commitments to re-design the ATR Policy. This will also negatively impact the processing of ATR proposals.
Pacific Salmon Strategy Initiative	No direct reference	Launched in 2021, it was a commitment of $647M over 5 years to stem the long-term decline of Pacific salmon stocks and transform the management regime.
Specific Claims Research Funding	No direct reference	$4 million is allocated annually for First Nations to research and develop their specific claims. In 2021, this amount was supplemented by an annual increase of $8 million for a total of $12 million. Budget 2025 contains no additional funding for specific claims research, meaning that the amount will revert to $4 million with devastating impacts on First Nations’ access to justice.
Enhanced Nature Legacy (ENL)	No direct reference	The ENL umbrella of programs contained nearly all Government of Canada commitments and programming related to conservation. ECCC has a core budget retained in order to achieve core mandates (conservation included), but no clear breakdown of replacements is provided.
First Nations Climate Leadership	No direct reference	No updated commitment to the implementation of the recommendations from the First Nations Regional Leads.
Associated Legislative Measures
Policy/Investment Area	Reference(s) in Budget	Comments
Legislative amendments to the Canadian Environmental Protection Act	Pg. 108; Annex 5; Annex 6	Proposed amendments to enable long-term agreements with provinces and territories to support the transition to net-zero through clean energy regulations for Canada’s electricity grid. Also, propose to amend the Canadian Environmental Protection Act to statutorily constitute the Environmental Protection Tribunal of Canada, as well as make any consequential amendments to other statutes.
Build Canada Homes	Annex 5, Pg. 2	Previously announced government investment of $11.5 billion to defray costs related to Build Canada Homes. The Government proposes to introduce legislation establishing the final organizational form of Build Canada Homes.
Sustainable Pesticide Management	Annex 5, Pg. 5	Proposed legislation introduction to remove cyclical pesticide reevaluations to enable modern, risk-based oversight.
Legislative Amendments to Enable Lending to Indigenous Special Purpose Vehicles	Annex 5, Pg. 12	The Government proposes to amend the First Nations Fiscal Management Act to enable the First Nations Finance Authority to lend to Indigenous special purpose vehicles and further enhance access to capital support for Indigenous groups seeking equity participation in economic and resource development projects.
Legislative Amendments to the Naskapi and the Cree-Naskapi Commission Act	Annex 5, Pg. 12	The Government proposes to amend the Naskapi and the Cree-Naskapi Commission Act to clarify Naskapi Police authority on Naskapi lands and eliminate inconsistencies with the Northeastern Quebec Agreement.
Legislative Amendments to the Canadian Energy Regulator Act	Annex 5, Pg. 14	The government proposes to amend the Canadian Energy Regulator Act to increase the maximum duration for export licences of liquified natural gas from 40 years to 50 years.
Critical Minerals Sovereign Fund Legislation	Annex 5, Pg. 14	The government is proposing to introduce legislation or amend existing legislation to create a Critical Minerals Sovereign Fund.
Amendments to the Building Canada Act	Annex 5, Pg. 15	The Government proposes to amend the Build Canada Act to add to the information that must be included in the public registry of national interest projects the extent to which each project can contribute to clean growth and to meeting Canada’s objectives with respect to climate change.
Building one Canadian economy	Annex 5, Pg. 16	The Government proposes to introduce legislation to give the Major Projects Office greater independence and managerial flexibility to facilitate its work to advance major projects and streamline federal regulatory project approval.