The Government of Canada announced Tuesday a $40 billion agreement-in-principle to reform the on-reserve child welfare system and compensate its First Nations child members.

The agreement was made between Canada, the Assembly of First Nations, the First Nations Child and Family Caring Society and other groups. It provides a global resolution for First Nations children who were harmed by discriminatory underfunding. The government asserts that the agreement will provide for long-term reform of service programs to ensure that children do not face further discrimination. Following Canada’s announcement of the agreement, Minister of Indigenous Services Patty Hajdu said:

For too long, the Government of Canada did not adequately fund or support the wellness of First Nations families and children . . . . No compensation amount can make up for the trauma people have experienced, but these Agreements-in-Principle acknowledge to survivors and their families the harm and pain caused by the discrimination in funding and services. The Agreements-in-Principle outline how equitable care will be funded and provided, and support First Nations-led solutions for family wellness.

Indigenous Services Canada shared that First Nations families and communities are facing increasingly challenging times caused by recent hardships. Among these hardships was the tragic discovery of hundreds of bodies at a former residential school for Indigenous children. The bodies in the 751 unmarked graves were found using ground-penetrating sonar. Indigenous Services Canada also said that the climate change crisis and the COVID-19 pandemic have “deepened the disadvantages” First Nations families face.

Canada aims to provide additional support to ease pressures and to deliver a prompt settlement to harmed families. The money from this Agreement-in-Principle includes $20 billion for First Nations children in a specified reserve during a 30-year timeframe. Other members will also receive compensation if they satisfy the given criteria.