Canada’s 2026 federal budget earmarks about $50 billion for Indigenous communities over 10 years

Prime Minister Mark Carney’s 2026 federal budget sets aside roughly $50 billion for Indigenous communities over 10 years, covering areas from housing and water systems to health care and education. The allocation continues a pattern of substantially higher federal spending on Indigenous communities and services since the federal Liberals formed government more than a decade ago. The largest component is about $32 billion over a decade for First Nations housing and infrastructure. Other major commitments cover shorter periods and include funding for schools, children’s services, health benefits and policing. Several measures would renew or extend existing programs.

The budget says longer funding commitments would give First Nations communities more flexibility to plan. Its document says predictable, long-term funding can help communities retain skilled workers and make investments based on lasting needs rather than short-term pressures. It would also reduce the time and resources spent navigating short-term funding, allowing more of each dollar to go directly to services and results.

The new First Nations On-Reserve Infrastructure Program would receive $18.5 billion over 10 years, starting in the 2027/2028 fiscal year. It would pay for construction and maintenance of roads, bridges, schools, health centres, and water and wastewater infrastructure. The federal government would also consider consolidating existing infrastructure programs, giving communities more flexibility to decide when projects proceed and how improvements fit together.

For housing, the budget provides $11 billion over 10 years starting in 2027/2028. The funding would help maintain 119,000 existing homes, build more than 6,900 homes and renovate more than 10,900. Another $1.7 billion over five years, also starting in 2027/2028, would help speed up housing projects on First Nations reserves that are ready to begin construction. The housing and infrastructure package also includes about $658 million over 10 years to test different ways of financing projects and helping First Nations individuals become homeowners. Of that amount, $500 million over a decade would support a pilot that uses federal funding to secure financing upfront, allowing communities to start infrastructure work sooner rather than wait for funding to arrive over time. A further $150 million over five years would go to the First Nation-led Yänonhchia’ Revolving Housing Finance Fund, which works with Indigenous financial institutions to provide housing loans. The budget estimates it would support 825 loans across 60 to 100 First Nations communities.

Education accounts for a substantial share of the funding. Starting in 2027/2028, the budget provides $5.8 billion over five years for the Elementary and Secondary Education Program on reserve, including renewed targeted support for adult education. A separate five-year amount is given in the source as “4378 million” to support First Nations students pursuing post-secondary education. Children’s services would also receive more, including $6 billion over six years.

The Non-Insured Health Benefits Program would receive $2.9 billion over three years starting in 2027/2028. It helps cover costs for First Nations and Inuit people, including medication, travel for medical care and mental health services. Another $291 million over four years would renew support for public health workers and initiatives in Indigenous communities, including infectious-disease prevention and outbreak response. For policing, Carney’s government has budgeted $634 million over four years starting in 2027/2028, followed by ongoing annual funding of $251 million for the First Nations and Inuit Policing Program. The money would support officers, facilities such as police stations and community safety services.

Federal Minister of Finance and National Revenue François-Philippe Champagne said in his budget address on Thursday that building a strong and united Canada means continuing reconciliation and ensuring Indigenous communities have the foundations every community needs to thrive: safe housing, clean water, good schools, reliable infrastructure, stable and culturally responsive policing, and the ability to shape their own future. He said Budget 2026 would make major new investments in First Nations housing and infrastructure and provide greater funding certainty so communities can plan for the long term. Being masters of their destiny, he said, must mean having the tools to shape a better future.

More than a decade ago, then-prime minister Justin Trudeau’s government increased funding for Indigenous communities while changing Ottawa’s financial-transparency enforcement requirements. In December 2015, the federal government stopped discretionary enforcement measures under the First Nations Financial Transparency Act. The law requires First Nations to publicly disclose audited financial statements and the pay and expenses of chiefs and councillors. The government restored funding it had withheld and suspended court actions over non-compliance. The law technically remains in force, and Indigenous Services Canada funding agreements still require audited financial statements to be shared with community members and the federal government.

Some First Nations, including groups represented by the St’át’imc Chiefs Council, are legally challenging Carney’s designation of the planned Pacific Link oil pipeline as a project of national interest. They allege inadequate consultation and risks to salmon and fishing rights. The federal government and the project’s proponents say the pipeline would expand overseas exports and generate additional revenue for the federal government and the provincial governments of Alberta and British Columbia. Indigenous communities would also be offered the opportunity to buy a combined ownership stake of at least 10 per cent, supported by federal and Alberta Indigenous loan guarantee programs.