Signing of a Memorandum of Understanding on a New Fiscal Relationship with the Assembly of First Nations

News Release

July 12, 2016 – Niagara Falls, ON – Indigenous and Northern Affairs Canada

The Government of Canada is committed to lifting the 2 percent funding cap for First Nations programs and working to establish a new fiscal relationship that gives First Nations communities sufficient, predictable and sustained funding to ensure the overall wellbeing of First Nations.

Today, the Honourable Carolyn Bennett, Minister of Indigenous and Northern Affairs, and the National Chief of the Assembly of First Nations, Perry Bellegarde, signed a Memorandum of Understanding (MOU) to work together to deliver on this commitment.

The MOU will start a collaborative process for Canada and First Nations to undertake a comprehensive review of the existing fiscal relationship and develop proposals and recommendations for the design of a new fiscal relationship. This work is a foundational part of renewing the relationship between Canada and Indigenous peoples based on recognition of rights, respect, co-operation and partnership.

A Joint Committee will examine the current fiscal arrangements to identify areas and elements of the existing relationship that are impeding progress in moving towards a nation to nation relationship. The Committee will make recommendations by December 31, 2017.


“The Government of Canada is committed to establishing a new fiscal relationship with First Nations based on the recognition of rights, respect, co-operation and partnership. With the signing of this Memorandum of Understanding, we are establishing a process with the Assembly of First Nations to achieve this goal and eliminate disparities and inequities in the socio-economic conditions between First Nations and other Canadians. The initiative announced today is another step towards the renewal of our relationship with our Indigenous partners.”

The Honourable Carolyn Bennett, M.D., P.C., M.P.,
Minister of Indigenous and Northern Affairs


Sabrina Williams
Press Secretary
Office of the Honourable Carolyn Bennett

Media Relations
Indigenous and Northern Affairs Canada

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