Just In From The Fraser Institute: The true cost of \u2018Truth and Reconciliation\u2019<\/p>\n\n\n\n
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A new Fraser Institute study says inflation-adjusted federal Indigenous spending surged nearly 300% over a decade \u2014 more than seven times faster than overall federal program spending.<\/p>\n\n\n\n
Federal spending on Indigenous programs has nearly quadrupled over the past decade, climbing from $10.3 billion in 2014-15 to $40.8 billion in 2024-25 after adjusting for inflation, according to a new Fraser Institute study.<\/p>\n\n\n\n
The study, The Cost of Federal Spending for Indigenous Peoples in British Columbia, found Indigenous spending grew at an average annual rate of 17.1 per cent from 2015-16 to 2024-25, compared with 4.3 per cent annually between 1969-70 and 2014-15.<\/p>\n\n\n\n
\u201cOttawa\u2019s Indigenous spending has skyrocketed in recent years, even more so than general federal spending which itself has increased substantially,\u201d said study co-author and Fraser Institute senior fellow Tom Flanagan.<\/p>\n\n\n\n
Overall, Indigenous spending increased 297.7 per cent over the decade, compared with 42% for federal program spending excluding interest \u2014 more than seven times the rate of growth.<\/p>\n\n\n\n
The figures exclude spending on Indigenous lawsuits and settlements from 2015-16 onward.<\/p>\n\n\n\n
Researchers estimate $8.8 billion in Indigenous spending went to Ontario and $6.3 billion to B.C., though the figures include administrative costs \u2014 not money directly received by individuals.<\/p>\n\n\n\n
But the study questions whether the spending surge has produced corresponding improvements in living standards.<\/p>\n\n\n\n
Statistics Canada\u2019s The Community Well-Being gap barely changed from 1981 to 2016, while researchers attributed later gains largely to the Canada Child Benefit rather than Indigenous-specific spending.<\/p>\n\n\n\n
Federal auditors have raised similar concerns about results.<\/p>\n\n\n\n
In October 2025, Auditor General Karen Hogan found Indigenous Services Canada had made \u201cunsatisfactory progress\u201d on 18 of 34 recommendations examined across areas including drinking water, health care and emergency management.<\/p>\n\n\n\n
The department\u2019s spending increased roughly 84 per cent between 2019-20 and 2023-24 \u2014 from $13.3 billion to $23.9 billion. Yet 35 long-term drinking-water advisories remained as of April 1, 2025, including 9 that had lasted at least a decade.<\/p>\n\n\n\n
A separate 2024 audit found Indigenous Services Canada and the Canada Mortgage and Housing Corporation spent $3.86 billion over five years on First Nations housing but achieved \u201cno meaningful improvement\u201d in overall housing conditions.<\/p>\n\n\n\n
The Fraser Institute also raised concerns about financial transparency, saying Ottawa is not enforcing the First Nations Financial Transparency Act. Financial reports were publicly available for just 41 per cent of First Nations in 2024-25, according to the study.<\/p>\n\n\n\n
Indigenous Services Canada previously reported compliance with the Act fell from 99 per cent in 2013-14 to 64 per cent by 2019-20, citing factors including capacity issues and community emergencies.<\/p>\n\n\n\n
Ottawa stopped enforcing the Act\u2019s compliance measures in 2015, shifting toward First Nations-led accountability, though the law remains in force.<\/p>\n\n\n\n
Ottawa stopped using the Act\u2019s discretionary compliance measures in 2015 as it shifted toward First Nations-led accountability. The law remains in force, and the department says more than 300 First Nations financial administration laws contain provisions requiring audited statements to be shared with citizens.<\/p>\n\n\n\n
The transparency fight has also reached Federal Court.<\/p>\n\n\n\n
In a recent case involving Frog Lake First Nation, Hans McCarthy sought band council records held by Indigenous Services Canada concerning payments from his community\u2019s trust fund to council members for salaries and expenses.<\/p>\n\n\n\n
According to the Canadian Taxpayers Federation, which partnered with McCarthy, the fund contained approximately $102 million in 2013 but less than $9 million remained by 2024.<\/p>\n\n\n\n
After Indigenous Services Canada refused access-to-information requests seeking Band Council Resolutions authorizing payments from the trust fund, McCarthy challenged the decision.<\/p>\n\n\n\n
\u201cIf the purpose of the [Access to Information Act] is to enhance \u2018accountability\u2019 and \u2018transparency,\u2019 \u2018promote an open and democratic society,\u2019 and \u2018enable public debate,\u2019 the governance relationship between the Applicant and Frog Lake First Nation cannot be ignored,\u201d the court said.<\/p>\n\n\n\n