Archived - Budget 2016 Highlights – Indigenous and Northern Investments

Indigenous Investments

A Better Future for Indigenous Peoples

Budget 2016 proposes to invest $8.4 billion over five years, beginning in 2016–17, to improve the socio-economic conditions of Indigenous peoples and their communities and bring about transformational change. The proposed investments in education, infrastructure, training and other programs will directly contribute to a better quality of life for Indigenous peoples and a stronger, more unified, and prosperous Canada.

Establishing a New Relationship with First Nations

• The Government has committed to lift the 2-per-cent funding cap for First Nations programs and work to establish a new fiscal relationship that gives First Nations communities sufficient, predictable and sustained funding.
• By 2020–21, total funding for Indigenous programs will be 22 per cent above the level of funding that would have been provided under the previous 2-per-cent funding cap.

Ensuring the Safety and Well-Being of First Nations Children

• To strengthen the First Nations Child and Family Services program, Budget 2016 proposes to invest $634.8 million over five years, beginning in 2016–17.

Improving Primary and Secondary Education for First Nations Children

• To address the critical need to improve education outcomes, Budget 2016 proposes to make substantial investments in primary and secondary education on reserve, totalling $2.6 billion over five years starting in 2016–17, including the remaining funding previously announced in Budget 2014 for this purpose.

Supporting Early Learning and Child Care

• $100 million in 2017–18 towards Early Learning and Child Care on reserve.

Aboriginal Skills and Employment Training Strategy

• $15 million over two years, beginning in 2016–17, to launch a pilot project to enhance training that aligns with community needs.

A Renewed Youth Employment Strategy

• More than $330 million in the Youth Employment Strategy to help young people gain the skills, abilities and work experience they need to find and maintain good employment. Funding will be used for a few purposes, including to increase the number of youth who access the Skills Link program, which helps young Canadians—including Indigenous and disabled youth—make a more successful transition to the workforce.

Métis Nation Economic Development Strategy

• $25 million over five years, beginning in 2016–17, to support economic development for the Métis Nation.

Investing in Social Infrastructure to Create Inclusive Growth

• Quality housing, access to early learning and child care, health care, and cultural and recreational infrastructure can contribute to improving the quality of life of First Nations and Inuit communities. Over the next five years, the Government will invest $1.2 billion in support of social infrastructure in First Nations, Inuit and Northern communities.

Improving Housing in First Nations Communities

• To address urgent housing needs on reserve, Budget 2016 proposes to provide $554.3 million over two years beginning in 2016–17. Of this amount, $416.6 million over two years would be provided to Indigenous and Northern Affairs Canada to address immediate housing needs on reserve. An additional $137.7 million over two years would be provided to Canada Mortgage and Housing Corporation, most of which would support the renovation and retrofit of existing housing on reserve.
• The proposed investments are a first step. The Government will be working with First Nations communities over the coming year to develop an effective long-term approach to supporting the construction and maintenance of an adequate supply of housing on reserve as part of a broader National Housing Framework.

Supporting Northern and Inuit Housing

• Up to $176.7 million over two years, starting in 2016–17, to provinces and territories through the Investment in Affordable Housing initiative, for affordable housing in the North and Inuit communities.
  • Specifically, over two years, $8 million would be provided to Yukon, $12 million to the Northwest Territories and $76.7 million to Nunavut.
  • Further, investments would also be earmarked for three Inuit regions—Nunavik ($50 million over two years), Nunatsiavut ($15 million over two years) and the Inuvialuit Settlement Region ($15 million over two years).

Fostering Better Learning Environments by Investing in First Nations Schools

• $969.4 million over five years, starting in 2016–17, in First Nations education infrastructure on reserve.

Strengthening on Reserve Water and Wastewater Infrastructure

• $1.8 billion over five years to support clean drinking water and the treatment of wastewater on reserve.

Investing in Community Infrastructure

• To provide an additional $255 million over two years starting in 2016–17 to the First Nations Infrastructure Fund to support investments in a range of complementary infrastructure such as roads and bridges, energy systems, broadband connectivity, physical infrastructure to mitigate the effects of natural disasters and fire protection services.

Providing Safe Shelter for Victims of Violence

• Up to $33.6 million over five years, beginning in 2016–17, and up to $8.3 million ongoing, in additional funding to better support shelters serving victims of family violence living in First Nations communities.

Investing in Cultural and Recreational Infrastructure

• $76.9 million over two years, beginning in 2016–17 to support the construction of cultural and recreational infrastructure on reserve.

Improving Community Health Care Facilities on Reserve

• $270 million over five years to address critically needed health infrastructure for First Nations communities.

Investing in Green Infrastructure on Reserve

• $2.24 billion to First Nations communities to improve on reserve water and wastewater infrastructure and waste management.

Monitoring of Water on Reserve

• $141.7 million over five years, starting in 2016–17 to improve the monitoring and testing of on reserve community drinking water.

Addressing Waste Management for First Nations Communities

• $409 million over five years, starting in 2016–17 to improve how garbage and waste is managed on reserve.

Supporting Energy Efficiency and Renewable Energy Development

• To support energy efficiency and renewable energy development, $128.8 million over five years, starting in 2016–17, to Natural Resources Canada to deliver energy efficiency policies and programs, and maintain clean energy policy capacity, as well as $10.7 million over two years, starting in 2016–17, to Indigenous and Northern Affairs Canada to implement renewable energy projects in off-grid Indigenous and northern communities that rely on diesel and other fossil fuels to generate heat and power.

National Inquiry Into Missing and Murdered Indigenous Women and Girls

• Budget 2016 proposes to allocate $40 million over two years, beginning in 2016–17, toward the National Inquiry into Missing and Murdered Indigenous Women and Girls.

Engaging with Indigenous Peoples

• To support the capacity of Aboriginal Representative Organizations to engage with the Government, Budget 2016 proposes to provide $96 million over five years and $10 million ongoing.

Renewing the Urban Aboriginal Strategy

• To renew $23.7 million of the Urban Aboriginal Strategy's $51-million-per-year funding, which is set to expire at the end of the 2015–16 fiscal year.

Support for the First Nations Finance Authority

• $20 million over two years, beginning in 2016–17, to strengthen the First Nations Finance Authority capital base.

Assisting Indigenous Peoples Facing the Criminal Justice System

• An additional $4 million per year for the Aboriginal Courtwork Program.

Supporting First Nations Fishing Enterprises

• $33.1 million in 2016–17 to Fisheries and Oceans Canada to extend the Atlantic and Pacific Integrated Commercial Fisheries Initiatives.

Providing Free Access and Expanding the National Park System

• $16.6 million over five years, starting in 2016–17, to expand the Learn to Camp program, develop new programming to tell Canada's stories, and encourage Indigenous story-telling and eco-tourism opportunities.

Strengthening Canada's Environmental Assessment Processes: Restoring trust in environmental assessment

• $16.5 million over three years, starting in 2016–17, to the National Energy Board, Natural Resources Canada and Transport Canada to implement the interim approach. This funding will support public and Indigenous participation in enhanced consultations in projects undergoing reviews by the National Energy Board and to support Crown consultations with Indigenous people. Funding provided to the National Energy Board will be fully cost-recovered from industry.

Supporting the Canadian Environmental Assessment Agency

• $14.2 million over four years, starting in 2016–17, to the Canadian Environmental Assessment Agency to support the Agency in fulfilling its responsibilities under the Canadian Environmental Assessment Act, 2012. This includes the Participant Funding Program, which provides support for individuals, non-for-profit organizations and Indigenous groups to participate in federal environmental assessments.

Aboriginal Languages Initiative

• The Aboriginal Languages Initiative invests $5 million per year to promote, preserve, and enhance Indigenous languages. Budget 2016 proposes to extend funding for the initiative to 2016–17. The Government will work with Indigenous groups to consider how to best support Indigenous language and culture beyond 2016–17.

Budget 2016 Highlights – Northern Investments

A strong, diversified, sustainable and dynamic economy for Northerners, including Indigenous peoples, contributes to Canada's prosperity. The measures proposed in Budget 2016 focus on a wide variety of areas, including infrastructure, climate change, affordable housing, education, physical and mental health, sustainable economic development, renewable energy, environmental protection and evidence-based research.

Taken together, the funding proposed in Budget 2016 will enable the North to build upon its strengths, helping to fuel economic growth and position the North to succeed in a global economy, while securing its fragile ecosystem and unique environment and wildlife.

Many of these measures also cut across traditional departmental lines. The North belongs to all Canadians, and a number of federal departments will be working together to implement these initiatives. Highlights of Budget 2016 include:

Expanding Nutrition North Canada

• A nutritious diet is essential to good physical and mental health. Nutrition North Canada helps alleviate the high cost of food in many northern isolated communities by providing a subsidy on perishable nutritious food. Culturally appropriate nutrition education initiatives are also provided to promote the consumption of a healthy diet. Budget 2016 proposes to provide $64.5 million over five years, starting in 2016–17, and $13.8 million per year ongoing to expand Nutrition North Canada to support all northern isolated communities.

Supporting Northern and Inuit Housing

• Up to $177.7 million over two years, starting in 2016–17, to provinces and territories through the Investment in Affordable Housing initiative, for affordable housing in the North and Inuit communities.
  • Specifically, over two years, $8 million would be provided to Yukon, $12 million to the Northwest Territories and $76.7 million to Nunavut.
  • Further, investments would also be earmarked for three Inuit regions—Nunavik ($50 million over two years), Nunatsiavut ($15 million over two years) and the Inuvialuit Settlement Region ($15 million over two years).

Federal Contaminated Sites

• $200 million over two years, starting in 2016–17 on a cash basis, to accelerate the assessment and remediation of contaminated sites for which the Government is responsible.

Supporting Energy Efficiency and Renewable Energy Development

• To support energy efficiency and renewable energy development, $128.8 million over five years, starting in 2016–17, to Natural Resources Canada to deliver energy efficiency policies and programs, and maintain clean energy policy capacity, as well as $10.7 million over two years, starting in 2016–17, to Indigenous and Northern Affairs Canada to implement renewable energy projects in off-grid Indigenous and northern communities that rely on diesel and other fossil fuels to generate heat and power.

Securing a Cleaner, More Sustainable Environment: Adapting to Climate Change Impacts

• To adapt to climate change impacts, $129.5 million over five years, starting in 2016–17, to seven federal departments and agencies to implement programming focused on building the science base to inform decision-making, protecting the health and well-being of Canadians, building resilience in the North and Indigenous communities, and enhancing competitiveness in key economic sectors.

Taking Stock of the Arctic Environment

• $19 million over five years, starting in 2016–17, to Indigenous and Northern Affairs Canada to collaborate with researchers and Inuit communities to gather existing research and traditional knowledge of the Arctic environment and conduct new research where gaps in knowledge exist. This work will help assess the potential environmental impacts of future oil and gas activity in three regions of the Arctic—the Beaufort Sea, Baffin Bay and Davis Strait, and Kivalliq, Kitikmeot and the Arctic Islands of Nunavut—and inform whether oil and gas activity should proceed in these regions.

Strengthening Northern Economic Development

• $40 million over two years, starting in 2016–17, to renew the Strategic Investments in Northern Economic Development program delivered by the Canadian Northern Economic Development Agency.

Improving Regulatory Review Processes for Major Projects in the North

• $10.1 million over four years, starting in 2016–17, to the Canadian Northern Economic Development Agency to continue the Agency's leadership role in the Northern Projects Management Office in improving the timeliness, predictability and transparency of northern regulatory review processes.

Other Northern Investments

• $255 million over six years, starting in 2016-2017, for the Northern Residents Deduction.
• An additional $67 million to the territories in 2016-2017 through a recalculation of the Territorial Formula Financing payments to territories.
• Up to $500 million over five years, starting in 2016-2017, for a new program to extend and enhance broadband service in rural and remote communitie.
• Up to $42.4 million over five years, starting in 2016–17, to continue work on developing new national parks and national marine conservation areas, including the Lancaster Sound National Marine Conservation Area, Nunavut and Thaidene Nene National Park, Northwest Territories.
• $29.4 million in 2016-17 to undertake urgent repairs and renovations of the facilities used by the Aboriginal Head Start On Reserve Program and the First Nations and Inuit Child Care Initiative.
• $6.0 million on projects to support northern operations, including investments in airfield ramp reconstruction that is critical to northern search and rescue and upgrades to fire suppression systems that directly support the North American Aerospace Defense Command (NORAD).
• $320,000 allocated for the Northwest Territories and $890,000 for the Yukon Territories under the Public Transit Infrastructure Fund over three years, starting in 2016–17.
• $3.4 billion over the next five years, on a cash basis, to maintain and upgrade federal infrastructure assets such as national parks, small craft harbours, federal airports and border infrastructure. This funding will also support the clean-up of contaminated sites across the country.
• Up to $25.3 million from the Small Communities Fund to support five recreational and sport facility projects in Nunavut, including a cultural centre in Cape Dorset, repairs for the Cambridge Bay Arena and the Iqaluit Aquatic Centre.
• Extending by an additional year the 15-per-cent Mineral Exploration Tax Credit to help junior mineral exploration companies raise capital. It is estimated that this measure will result in a net reduction in federal revenues of $20 million over the 2016–17 to 2017–18 period.
• Up to $217 million will be provided for environmental remediation work on contaminated sites.
• Extending Employment Insurance (EI) regular benefits by five weeks to all eligible claimants, and to provide up to an additional 20 weeks of EI regular benefits to long tenured workers, in the following EI economic regions: Newfoundland/Labrador, Whitehorse, and Nunavut.