Government Commitments

Government Commitments to Truth and Reconciliation

Budget 2024: Advancing Economic Reconciliation

April 16, 2024

An economy that is fair for everyone is one where everyone is able to fully participate. That hasn’t always been the case, especially for Indigenous Peoples. The history of discrimination faced in communities has meant that, for too long, Indigenous Peoples were left behind and could not fully participate in the Canadian economy. With Budget 2024, the government is taking action to ensure Indigenous communities are able to share in Canada’s prosperity and benefit from the new opportunities ahead.

Economic reconciliation—whether through supporting Indigenous entrepreneurs, creating good jobs in Indigenous communities, or helping ensure Indigenous communities have access to the capital they need for equity in major projects—is how we make sure we all benefit from Canada’s prosperity.

Key Ongoing Actions

  • $150 million over five years, starting in 2022-23, to advance shovel-ready
    economic opportunities in Indigenous communities.
  • $65 million over five years, starting in 2023‑24, to co-develop a new First
    Nations-led land registry and support First Nations in building capacity to
    exercise jurisdiction over their lands, resources, and environment.
  • $21 million over five years, starting in 2023-24, to increase participation in
    environmental and regulatory assessments of major projects.

Indigenous Loan Guarantee Program

Indigenous communities need to be able to share in the benefits of natural resource and energy projects in their territories and on their own terms. Due to the Indian Act and the legacy of colonialism, Indigenous communities have fewer options for securing capital or leveraging existing assets as collateral, leading to increased borrowing rates that create a barrier to equity investment
in natural resource and energy projects.

The number of major natural resource and energy projects with potential for Indigenous equity participation is anticipated to grow significantly, with the First Nations Major Projects Coalition’s research expecting this potential to reach $525 billion in capital investment over the next ten years. If Canada is to make sure that Indigenous communities are able to fully benefit from the
opportunities ahead, they need fair access to affordable capital that meets their unique needs.

Building on the government’s 2023 Fall Economic Statement commitment to help facilitate Indigenous equity ownership in major projects, Budget 2024 proposes to launch the Indigenous Loan Guarantee Program with the following parameters:

  • Up to $5 billion in loan guarantees to unlock access to capital for Indigenous communities, creating economic opportunities and supporting their economic development priorities.
    • Applicant eligibility would recognize Indigenous governments, and their wholly owned and controlled entities.
    • The program would be sector-agnostic for natural resource and energy projects to prioritize economic reconciliation and self-determination.
    • The program would support projects across the country, and a range of project types, to ensure that Indigenous communities across the country benefit from the program.
    • Natural Resources Canada would be responsible for intake and capacity building, and the Canada Development Investment Corporation (CDEV), a Crown corporation in the Department of Finance
    • Canada portfolio, would create a new subsidiary to provide due diligence on the applications and administer the portfolio of loan guarantees.
  • Budget 2024 also proposes to provide $16.5 million over two years, starting in 2024-25, to Natural Resources Canada, including $3.5 million over two years to support capacity funding for Indigenous communities and applicants and delivery of the Indigenous Loan Guarantee Program by CDEV. This investment will provide capacity building supports to assist eligible Indigenous communities in making applications for loans through the program.

Boosting Indigenous Economic Opportunity

Economic reconciliation is critical to Indigenous self-determination. Building on previous investments, including support for the development of an Economic Reconciliation Framework and a National Benefits-Sharing Framework, Budget 2024 proposes to provide:

  • $350 million over five years, starting in 2024-25, to renew Canada’s commitment to Indigenous Financial Institutions, including $30 million over five years for the Métis Capital Corporations which have, for decades, provided critical support to Métis entrepreneurs and
  • $2.5 million in 2024-25, to continue supporting the Indigenous tourism industry through the Indigenous Tourism Association of Canada; and
  • $36 million, over three years, starting in 2024-25, to renew support for the Strategic Partnerships Initiatives’ Clean Energy program to promote Indigenous participation in clean growth opportunities.

Together, these investments will support Indigenous entrepreneurs and Indigenous communities by helping to reduce systemic barriers, ensure supports are in place for Indigenous people to fully participate in the economy, and contribute to Indigenous prosperity, and success across generations.

Indigenous Labour Market Information

The Indigenous Labour Market Information Survey and Skills Inventory Initiative was first funded in 2015 to support timely, detailed, and community-specific labour market data. This initiative supports participating First Nations to collect information which helps them to identify workforce gaps and needs, and to better match their members with the right training and jobs.

  • Budget 2024 proposes to provide $4.4 million over two years, starting in 2024-25, to continue the Indigenous Labour Market Information Survey and Skills Inventory Initiative to support labour market participation and ensure prosperous communities.

TOTAL BUDGET = $409M over 5 years

Advancing Economic Reconciliation2024-20252025-20262026-20272027-20282028-2029Total
Indigenous Loan Guarantee Program8800017
Boosting Indigenous Economic Activity7578837676388
Indigenous Labour Market Information220004