2024 Federal Budget Tabled

Authored by: Liam McGuigan and Emmaline English (articled student)

On April 16, 2024, the Government of Canada released the 2024 federal Budget.  The Budget includes several spending measures, legislative and policy changes that are relevant for Indigenous communities.

It is important to note that budgets are financial plans of the government, but do not provide the government or the relevant department with the authorization to spend money. As this is the last budget before the legislated federal election, much of the proposed spending in this budget will be at the discretion of the next federal government.

If you have questions about accessing funding or exploring other opportunities announced in the 2024 federal Budget, a Woodward and Company lawyer can assist.

Key Takeaways for First Nations

Communities asserting jurisdiction over child and family services

• $1.8 billion/ 11 years, starting in fiscal year 2023-2024 to support communities exercising jurisdiction under An Act respecting First Nations, Inuit and Métis children, youth and families.
• $57 million of this Budget was spent last fiscal year, $479 million is proposed to flow this year, and $1.525 billion is projected to be spent over the next five years.

S. 35(1) negotiations and implementation

• $96.4 million/ two years, starting in fiscal year 2024-2025 to support communities in negotiation tables regarding s. 35(1) rights.
• $6 million per year/ five years, starting in fiscal year 2024-2025 to implement s. 35 agreements in British Columbia that involve the Department of Fisheries and Oceans, Crown-Indigenous Relations and Northern Affairs Canada and Transport Canada.
• Of the funding to support negotiation tables, $48 million is proposed to flow this year.

First Nations K-12 education

• $1.194 billion in K-12 education programming and infrastructure:
  • $649.4 million/ two years, starting in fiscal year 2024-2025 to improve elementary and secondary education on reserve.
  • $545.1 million/ three years, starting in fiscal year 2024 – 2025 for K-12 infrastructure.

• It is unclear how much funding will flow each year for education programming and infrastructure as the proposed spending projection over five years combines these two investments.
• What is known is that $1.194 billion is proposed over three years, and $411 million is proposed to flow this year.

On-reserve income assistance

• $596.2 million million/ five years starting in fiscal year 2024-2025 for on-reserve income assistance and to expand programming to meet demand, with $119.2 million per year ongoing.
• $117.6 million/ three years starting in fiscal year 2024-2025  for pre-employment supports and case management.
• $213.5 million/ five years starting in fiscal year 2024-2025 to implement income supports for eligible persons with disabilities aligned with those provided in all provinces and the Yukon, with $49.8 million per year ongoing.
• Of this funding, $173 million is projected to flow this fiscal year.

Emergency management

• $145.2 million/ five years starting in fiscal year 2024 – 2025 for climate resiliency and to deploy structural mitigation strategies.
• It is unclear how much funding will flow per year. What is known is that $36 million is projected to flow this fiscal year.

Housing

• $918 million/ five years starting in fiscal year 2024 – 2025 to narrow housing and infrastructure gaps for First Nations, Métis, and Inuit communities.
• While not provided for in the Budget, according to the Canadian Press, this amount will be broken down by $370 million for Inuit communities, $60 million for Métis communities, and $426 million for First Nations on reserve.^[1]
• $176 million is projected to flow this fiscal year.

Indigenous Loan Guarantee Program

• The Budget proposes up to $5 billion in loan guarantees for Indigenous governments and their wholly owned entities seeking to invest in natural resource and energy projects.
• $3.5 million/ two years will be provided for Indigenous communities for capacity development.

Tax jurisdiction over cannabis, fuel, alcohol, tobacco, and vaping

• The Budget proposes to amend the First Nations Goods and Services Tax Act to allow Indigenous governments to enact sales tax on cannabis, fuel, alcohol, tobacco, and vaping on their reserves or settlement lands.^[2]
• This tax would be established through a Nation’s laws, and Nations will be able to choose which products to tax.
• To implement the tax, tax administration agreements will need to be negotiated between the Nation and the federal government.^[3]

Amendments to the Canada Labour Code

• The Budget proposes to amend the Canada Labour Code so that employers in federally regulated sectors must create a policy to limit the amount of work-related communication permitted outside of working hours.
• These amendments will have implications for First Nations governments who are considered to be federally regulated workplaces.

[1] Alessia Passaflume, “Feds offer $5B in Indigenous loan guarantees, fall $420B short on infrastructure asks” The Canadian Press (16 April 2024), online: <https://www.ctvnews.ca/politics/feds-offer-5b-in-indigenous-loan-guarantees-fall-420b-short-on-infrastructure-asks-1.6849649>.

[2] First Nations Goods and Services Tax Act, SC 2003, c 15, s 67.

[3] Government of Canada, Department of Finance, “Tax Measures: Supplementary Information” (2024), online: <https://budget.canada.ca/2024/report-rapport/tm-mf-en.html#a81>.