Indigenous Leaders Slam Budget Cuts Threatening Reconciliation Programs

UPDATE: Indigenous leaders are sounding the alarm as the 2025 federal budget unveiled by Prime Minister Mark Carney threatens crucial reconciliation programs. With no funding guaranteed beyond spring 2026, fears of program terminations are escalating, sparking urgent calls for accountability.

The budget, released on July 16, has left key initiatives for Indigenous education, wellness, and emergency management with only temporary funding for this year. A chart circulating on social media highlights the dismal future outlook—numerous columns marked with zero funding beyond this fiscal year.

“I’m absolutely concerned,” stated Cindy Woodhouse Nepinak, National Chief of the Assembly of First Nations. She emphasized the need for immediate clarity, stating, “I am going to ask the Prime Minister’s Office today: What is exactly being cut?” Woodhouse Nepinak represents over 600 First Nations chiefs across Canada, amplifying the urgency of these concerns.

Meanwhile, Natan Obed, President of Inuit Tapiriit Kanatami (ITK), echoed similar sentiments, particularly regarding the Inuit Child First Initiative, which is set to expire in March 2026. “If we know that Inuit are not receiving equitable care and opportunity, there are legal ramifications that we can pursue,” Obed stated. “We hope to resolve this without legal action, but we will fight for our children.”

In a defense of the budget, Indigenous Services Minister Mandy Gull-Masty claimed the government aims to modernize the programs rather than terminate them. “There are some things in this budget that were misunderstood as zeros. That’s not the case,” she clarified, promising that the government would align outcomes with community needs.

The Urban Programming for Indigenous Peoples, essential for funding friendship centres that support Indigenous communities in urban areas, is also at risk. The National Association of Friendship Centres warned that these vital services, which address employment, housing, and mental health, could face drastic cuts. “The federal government is breaking its promise to Indigenous people,” said Sean Longboat, Executive Director of the Ontario Federation of Indigenous Friendship Centres.

While some Indigenous leaders, like Anita Campbell of the Manitoba Métis Federation, welcomed the budget as aligning with their priorities, others remain skeptical. The budget proposes to limit spending cuts at Indigenous Services Canada and other related departments to two percent, which translates to around $500 million per year in cuts by spring 2030.

Key new allocations include $2.3 billion for safe water initiatives on First Nations and $10.1 million for Indigenous consultations on fast-tracked projects. However, the lack of funding for tuberculosis elimination initiatives and other critical programs raises alarms among many Indigenous leaders.

“The budget doesn’t reflect the depth of commitment that we’ve heard in certain moments over the past six to nine months,”

expressed Victoria Pruden, President of the Métis National Council. “And yeah, it is deeply concerning.”

As Indigenous leaders prepare to confront the government, the implications of these budget decisions resonate widely, threatening essential services for Indigenous communities across Canada. This situation remains developing, and all eyes will be on the Prime Minister’s Office for immediate answers and actions.