The federal government’s recent $23 billion CAD settlement with the Assembly of First Nations (AFN) and plaintiffs in the Moushoom and Trout class actions for First Nations children harmed by Canada’s discriminatory child welfare system marks an important step in acknowledging the deep injustices and violence against Indigenous communities. The settlement is the product of years of legal battles, brought forth through the relentless advocacy of Indigenous leaders and organizations, that led to the Canadian Human Rights Tribunal (CHRT)’s 2016 ruling acknowledging Canada had willfully discriminated against First Nations children for decades. The settlement is, without question, historic—the largest of its kind in Canadian history—and a direct response to decades of the government’s neglect and systemic racism. But while financial compensation may provide a measure of restitution, it does not—and cannot—erase the ongoing impacts of Canada’s inequitable welfare policies. To call this settlement a full and final expression of justice would be to misunderstand the very nature of what justice means.
Indigenous children in Canada account for slightly over seven per cent of the country’s total child population, yet they make up more than 50 per cent of the children in the child welfare system. First Nations children in particular are over 17 times more likely to end up in the youth care system. Indigenous communities today continue to fight for their right to care for their own children. For decades, Canada’s child welfare system has perpetuated the colonial project of family separation, a legacy of residential schools and the Sixties Scoop—the forced removal of Indigenous children into non-Indigenous care, causing cultural loss and trauma. The Canadian government’s chronic underfunding of on-reserve child welfare and education services and its failure to uphold Jordan’s Principle—meant to ensure First Nations children receive essential care without jurisdictional disputes—only exacerbate these harms.
As part of its 2016 ruling, the CHRT also demanded that Canada reach an agreement with First Nations to reform the child welfare system. In 2024, the federal government put forward a new $47.8 billion CAD reform proposal that was rejected by AFN leaders. These leaders claimed that the proposed 10-year reforms were inadequate to address ongoing structural issues. Further, some leaders felt the proposal favoured certain regions such as Ontario, particularly since it did not include children and families in the Northwest Territories (NWT)—an oversight that many took as a direct affront to legal equity. The exclusion was due to the fact that federal funding for child and family services in the NWT is provided through transfer payment agreements with the territorial government, not through the First Nations Child and Family Services Program. Chiefs from across the country voted to pass a subsequent resolution to ensure that NWT communities would be included in the reform proposal.
Canada’s response to demands for inclusivity in reconciliation efforts reveals a priority for appearing committed to reform, even at the cost of dividing communities. Instead of working toward a national solution, the federal government announced last month that it is pursuing a separate deal with the Chiefs of Ontario and Nishnawbe Aski Nation to reform Ontario’s on-reserve child welfare system, stepping away from negotiations that include all provinces and territories. This move deepens the divide within First Nations communities and undermines the goal of achieving equitable child welfare for all.
The Canadian public must stay engaged. Too often, the national focus on Indigenous issues fades once high-profile headlines disappear. With an upcoming election, there is growing urgency to secure a fair deal for First Nations welfare reform, especially as some Indigenous leaders have recalled the lack of funding and support for their communities during the Harper era. Regardless of which party wins the next majority, justice for Indigenous peoples, beyond simple monetary methods, must be a top priority. For students who can vote in the expected upcoming election, this is an opportunity to use your voice. For those who cannot vote, apathy and reticence are not the answer. Supporting Indigenous communities is crucial, on our own campus and beyond.
That being said, money alone does not bring back stolen childhoods, repair fractured families, or undo the intergenerational damage caused by Canada’s policies. The recent government settlement is a necessary recognition of harm, but one that must be followed by concrete, comprehensive plans to actively prevent such harm from happening again.
