Quarterly Financial Report: Quarter ended December 31, 2025

1.1 Authority, Mandate and Departmental Results

Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) continues to renew the nation-to-nation, Inuit-Crown, government-to-government relationship between Canada and First Nations, Inuit and Métis; modernize Government of Canada structures to enable Indigenous Peoples to build capacity and support their vision of self-determination; and lead the Government of Canada's work in the North.

The responsibility for CIRNAC is shared between the Minister of Crown-Indigenous Relations and the Minister of Northern and Arctic Affairs.

Further details on CIRNAC's authority, mandate and departmental results can be found in Part II of the Main Estimates and the Departmental Plan.

1.2 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying statement of authorities (Table 1) includes the Department's spending authorities granted by Parliament, and those used by the Department consistent with the Main Estimates and Supplementary Estimates for the 2025-26 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the government. Approvals are given in the form of annually approved limits through appropriation acts, or through legislation in the form of statutory spending authority for specific purposes.

The Department uses the full accrual accounting method to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis accounting.

1.3 General Descriptions

The following descriptions are referred to throughout the report:

• Authority: Approvals from Parliament to spend up to a specific amount.
• Operating (Vote 1 and Statutory):
  • Vote 1: Amount approved for the fiscal year for the Department to spend on operating expenditures.
  • Statutory: Amount approved through an existing Act of Parliament.
• Capital (Vote 5): Amount approved for the fiscal year for the Department to spend on capital purchases or for the construction of assets.
• Grants and Contributions (G&C's) (Vote 10 and Statutory):
  • Vote 10: Amount approved for the fiscal year for the Department as Grants and Contributions (G&C's) transfer payments to recipients.
  • Statutory: Amount approved through an existing Act of Parliament.
• Standard Object (SO): Classification or coding of transactions to permit the reporting of information about the nature of transactions in the Estimates and Public Accounts. Classifications include, for example, personnel, professional and special services, and transfer payments.
• Operating and Capital Budget Carry Forward: Eligible funds lapsed in the previous fiscal year brought forward to the following year.

2.1 Authorities available for use

This section highlights the financial results for the quarter and fiscal year to date ended December 31, 2025, and provides an explanation of variances in authorities available for use compared to the same period in the prior year.

CIRNAC's total budgetary authorities available for use at the end of the third quarter in 2025-26 is $14,443.9 million. This total reflects the Department's 2025-26 Main Estimates of

$13,040.3 million, Supplementary Estimates (B) of $1,385.5 million, as well as the allotment adjustments of $18.1 million related to the Operating and Capital Budget Carry Forwards ($17.6 million) and the Compensation Adjustment ($0.5 million). The most significant adjustment made to CIRNAC's authorities during the third quarter was the Supplementary Estimates (B), which funded key initiatives, including:

• $637.1 million in reprofiled funding for Agricultural Benefits Claims;
• $270.6 million in reprofiled funding for the Federal Indian Day Schools (McLean) Settlement;
• $108.4 million for the Settlement of the Mississaugas of the Credit First Nation Rouge River Valley Tract Special Claim;
• $66.5 million to support the establishment of the National Council for Reconciliation; and
• $61.0 million in reprofiled funding for housing and infrastructure in Indigenous communities.

2.1.1 Highlights of changes in authorities available for use (2025-26 compared to 2024-25)

At the end of the third quarter in 2025-26, CIRNAC's total budgetary authorities available for use is $14,443.9 million which is $3,483.8 million (19%) lower than the same period in 2024-25. This decrease is a result of changes in funding levels for many initiatives, the most noteworthy of which include:

Vote 1 – Operating (+$1,284.0 million), for items such as:

• Funding for the Exercise of Crown Discretion - Whitesand (+1,820 million);
• Funding to settle litigation (+$836.5 million);
• Funding for the Federal Indian Day Schools (McLean) Settlement (- $1,063.9 million); and
• Funding for the Federal Indian Boarding Homes (Percival) litigation (-272.3 million).

Vote 10 – Grants and Contributions (- $4,768.8 million), for items such as:

• Funding for Agricultural Benefits Claims (- $3,897.8 million);
• Funding for Specific Claims Settlement Fund (-$1,477.3 million); and
• Funding to settle land related claims and litigation (+$669.2 million).

The changes in authorities available for use are illustrated in Graph 1 below.

Text alternative for Graph 1: Comparison of Total Net Budgetary Authorities Available for Use as of December 31, 2025, and December 31, 2024 (in thousands of dollars)

	(In thousands of dollars)
Fiscal Year	OperatingTable note 1	Capital	Grants and ContributionTable note 1	Total
FY 2025-26	5,289,429	755	9,153,730	14,443,914
FY 2024-25	4,005,098	111	13,922,501	17,927,710
Variance	1,284,331	644	(4,768,771)	(3,483,796)
Table note 1 Including statutory authorities Return to table note 1 referrer

See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.

2.2 Authorities used and actual expenditures

Actual expenditures during this quarter were $1,462 million, mainly due to the following:

Vote 1 – Operating:

• Payment related to the remediation, care, and maintenance of contaminated sites ($175.6 million); and
• Compensation payment for an out-of-court Settlement ($49.0 million)

Vote 10 – Grants and Contributions:

• Payment related to Agricultural Benefits Claims ($561.4 million); and
• Payment related to Specific Claims Settlement Fund ($239.9 million).

Compared to the previous fiscal year, total budgetary expenditures for the third quarter decreased by $729.3 million (9.6%) from $7,575.4 million as of December 31, 2024, to $6,846.1 million as of December 31, 2025. This decrease is mainly attributed to:

Vote 1 – Operating (+$389.3 million), for items such as:

• Funding for the Exercise of Crown Discretion - Whitesand (+$1,136.4 million); and
• Funding for the Federal Indian Day Schools (McLean) Settlement (-$750,0 million).

Vote 10 – Grants and Contributions (-$1,122.1 million), for items such as:

• Specific Claims Settlement Fund (-$567.5 million); and
• Funding for Agricultural Benefits Claims (-$478.2 million).

See Statement of Authorities (Table 1) and Departmental Budgetary Expenditures by Standard Object (Table 2) for additional details.