April 2026
iyr explains:
What is the
Spring Economic
& Why Do We Care? Update & Why Do We Care?
Update & Why Do We Care?
What is the Spring Economic What is the Spring Economic Update
The Spring Economic Update (SEU) is the Government of Canada’s update on how the financial books are looking since Budget 2025-2026 was released back in November. Think of it as a mini-budget that answers questions like whether their spending priorities have changed, whether they are adding or reallocating any funds, and whether their attempts to reduce the federal deficit worked.
Though some Indigenous leaders spoke positively about this fiscal year’s Budget for its inclusion of things like funding for Inuit Nunangat University, the Arctic Infrastructure Fund, and the Urban, Rural and Northern Indigenous Housing Strategy, many spoke out against funding cuts to reconciliation programming
“Urban Indigenous people have been left out of this budget and, we fear, being left behind by this government.” - NAFC Board President Pam Glode-Desroches
“We've been trying to do that outside of the courts and in good faith with this government, and we hope to still get to that point But I hope that everyone would understand that we'll fight for our children ” - ITK President Natan Obed, on potential cuts to the Inuit Child First Initiative
"To advance true economic reconciliation and shared prosperity, Canada must ensure initiatives announced in Budget 2025 include distinctions-based allocations that empower Métis Governments to lead solutions and drive growth for their citizens ” - MNC President Victoria Pruden
With ISC and CIRNAC being forced to cut a collective $2.3 billion from their budgets by 2030, there has been uncertainty about the future of Indigenous programs that were set to expire in Spring 2026 Some of these programs have been funded again, such as Jordan’s Principle, while others have not, and some have faced significant cuts
Why does the “federal deficit” matter?
The federal government makes money mainly through taxes paid by individuals, but also through things like pollution pricing and import/export taxes. When it spends more than it makes, it has to borrow money and accumulates debt. Just like the rest of us, the government has to pay interest on that debt. Having to pay interest on billions of dollars of debt means that the government has less money to spend on public services, social programs, infrastructure, and responding to emergencies. It also means that the national interest rate – which determines how much interest ordinary people pay on things like mortgages and personal debt – also goes up.
The Spring Economic The Spring Economic
Update: At A Glance Update: At A Glance Spring Update: At A Glance
All citations are from the Canada Strong For All: Spring Economic Update 2026 pdf, published by the Department of Finance Canada on 28 April 2026.
The SEU has broken up its investments into four main pillars:
Sovereign Wealth Fund (Canada Strong Fund)
Supporting Workers and Young People
Making life more affordable for Canadians
Stronger and Safer Communities
The Canada Strong Fund is one of the main large-scale investments in this mini-budget, and likely the one that the Government is going to talk about the most for the immediate future Described as a "Sovereign Wealth Fund" that is a "nation-building action plan" (p 54), the fund will be used for "strategic Canadian projects and companies" with the goal of "achieving commercial returns to build the wealth of Canada” (p. 54). The Government of Canada is starting the fund with $25 billion dollars over three years
On investments and dividends:
An investment is when you contribute money to something expecting to receive an income or profit based on the amount you put in, like interest you get from a savings account. Investments can also generate dividends - a portion of a corporation or company’s profits given to individuals who have invested in them.
The fund will be set up as an arms-length Crown corporation (owned by the federal government), guided by a CEO and independent board of directors. The projects that the fund is used for will come through the Major Projects Office as well as "projects or firms that receive other federal support" and resulting revenue will be reinvested and dividends paid to investors
Keep an eye out: IYR will be looking for further details on how Indigenous land rights and priorities will be respected and reflected by this new fund. In the coming months, the Government is establishing a Canada Strong Fund Transition Office to “lead a targeted engagement with market participants and regulators, and rapidly finalise the Fund” (p 56)
Funding Allocated to Funding Allocated to Indigenous Communities Indigenous Communities Funding Allocated to Indigenous Communities
Housing
$2.8 billion over five years in reallocated funding to Build Canada Homes, Crown Indigenous Relations and Northern Affairs Canada, Indigenous Services Canada, and Housing, Infrastructure and Communities Canada to "better align support for Indigenous housing within Canada's current housing landscape". This is to advance the work of the Urban Rural, and Northern Indigenous Housing strategy, which aims to improve access to housing for urban and rural Indigenous peoples. (p. 101)
Coastal Infrastructure
$957.8 million over five years to Fisheries and Oceans Canada's Small Craft Harbours Program This investment is made noting that small craft harbours are "a crucial connection point and lifeline to small communities providing much needed maritime links, including transportation and fishing as well as opportunities for recreation and aquaculture", and are infrastructure points that are particularly crucial that support multiple Indigenous communities in exercising their rights. (p. 105)
A total of $4.89 billion in new spending specifically set aside for Indigenous communities (source: APTN):
$601 million in 2026-27 for elementary and secondary education on reserve
$794 million in 2026-27 for NonInsured Health Benefits (NIHB)
$700 million over 6 years for child welfare services under An Act respecting First Nations, Inuit and Métis children, Youth and Families
$2.8 billion in reallocated funds through multiple departments to “better align support for Indigenous housing within Canada’s current housing landscape.”
Education and Child Welfare
In addition to previously announced funds meant to support Indigenous-led services and supports, the Spring Economic Update adds the following funding to Indigenous Services Canada:
$601 million in 2026-27 to support high-quality, culturally relevant elementary and secondary education on-reserve (p. 105)
$700 million over six years to continue to support Indigenous communities to implement their own solutions to protect children and families by exercising their jurisdiction under An Act respecting First Nations, Inuit and Métis children, Youth and Families (p. 105)
Health
$794 million to Indigenous Services Canada's NonInsured Health Benefits program to provide better coverage to First Nations and Inuit for medical travel, pharmaceuticals and mental health counselling, in addition to health funding that has already been announced. (p. 106).
Health funding that has been previously announced for Indigenous communities (p. 106):
$27 million to work with Inuit Tapiriit Kanatami on eliminating tuberculosis in Inuit Nunangat by 2030
$630 million for trauma and culturally informed mental wellness supports for Indigenous peoples
$400 million for primary care services such as nurses, nurse practitioners, and paramedics for First Nations, rural, remote, and onreserve communities
Previously announced funds for Indigenous-led services and supports (p. 105):
$359 million to support data collection in Indigenous governance and capacity programs, which aims to support First Nations in delivering community-based services
$168 million to support Urban Programming for Indigenous Peoples for Friendship Centres to continue to provide services
$592 million for social support services for First Nations people on-reserve living with a disability or chronic illness to maintain independence while covered by the Assisted Living Program
Funding For Youth Funding For Youth Funding For Youth
Expanding the Student Loan Forgiveness Program to include "a range of health and social services professionals who work in rural and remote communities" (p. 93) The Government is also temporarily maintaining the increase in full-time Canada Student Grants and in interest-free Canada Student Loans. (p. 94)
Taking measures to streamline training processes and alleviate financial pressures associated with having a career in the skilled trades. (p. 90-92)
$356.2 million over five years to extend Employment Insurance support for seasonal workers in certain regions until October 2028. (p. 93)
Other Investments of Note Other Investments of Note Other Investments of Note Environment
$160 8 million over five years to Fisheries and Oceans Canada and Transport Canada to continue protecting Canada’s whales and their habitat across all coasts (p 79)
$91.3 million over five years to Transport Canada, Fisheries and Oceans Canada, and the Canadian Coast Guard to implement a regional noise monitoring and management program and to address other threats to the endangered Southern Resident Killer Whale population (p 79)
An unspecified new amount for Canada’s Strategy to Protect Nature for land conservation, biodiversity measures, protecting species at risk, and supporting climate resilience. This includes an expansion of the Indigenous Guardians program and investments into employment in conservation. (p. 85)
Food Security
$6 3 million in 2026-2027 to the Northern Isolated Community Initiatives (NICI) Fund, orting "local and Indigenous food production systems, including innovative northern businesses", which was announced in February 2026. (p. 96)
million to the Nutrition North Canada Retail Subsidy, subsidizing the cost of shipping for and essential items to 124 isolated northern communities, which was announced in uary 2026. (p. 96)
Affordability
$42.5 million over five years to the Canada Revenue Agency to make changes to help reduce barriers in applying for the Canada Disability Tax Credit These changes will include a streamlined application process and an expanded list of practitioners who can certify in certain cases (p 106)
Reducing the legislated amount deducted from paycheques for contributions to the Canada Pension Plan (CPP) from 9.9% to 9.5% starting in January 2027. This is expected to save someone making $70,000 annually about $133 per year (p 94)
$11 94 billion over six years for the Canada Groceries and Essentials Benefit (CGEB), which was announced in January 2026. The CGEB will increase current GST rebates by 25% starting in 2026-27 and add a one-time top up payment in June 2026. (p. 95)
$125 million in 2026-27 for a one-year extension of the Unsheltered Homelessness and Encampments Initiative through Housing, Infrastructure and Communities Canada, which was announced in early April 2026 This initiative aims to create more supportive and transitional housing and offer services to people who are unsheltered in seeking housing. (p. 99)
This update also includes some general commitments to work with Indigenous partners on:
Modernizing Canada's energy grid (p. 79)
Building Canada's force of skilled trade workers (p. 91)
Reforms to Nutrition North Canada (p. 96)
Building affordable homes through the Build Canada Homes program (p. 97)
Community Responses Community Responses Community Responses
Assembly of First Nations (AFN)
In a statement, AFN National Chief Cindy Woodhouse called on the government to provide more clarity around the Canada Strong Fund, and to engage with First Nations prior to starting any projects funded by it. She also acknowledged the importance of the investments into Non-Insured Health Benefits and mental wellness support for Indigenous peoples but called out the lack of funding additional for the First Nation Child and Family Services Program
“The Spring Economic Update includes more than $37 billion in new investments through the Canada Strong sovereign wealth fund, mobilizing the workforce, and generating affordable housing none of which have any distinctions-based allocations for First Nations.”
Climate Action Network Canada (CANC)
- AFN National Chief Cindy Woodhouse Nepinak
In a statement, CANC Executive Director Caroline Brouillette celebrated the commitments in the SEU to climate finance and the Paris Agreement. However, she also pointed to the tax incentives for oil and gas companies as a “big miss ”
“As oil and gas companies pocket massive profits from rising fuel prices, new fossil fuel subsidies are a deep betrayal of Canadians struggling with affordability worries and the rising costs of climate disasters..”
- CANC Executive Director Caroline Brouillette
IYR’s Takeaways IYR’s Takeaways IYR’s Takeaways
The SEU presented an opportunity for the Government of Canada to meaningfully respond to criticisms from Indigenous leaders that this government has tangibly de-prioritized reconciliation efforts.
To that end, IYR welcomes investments in culturally relevant elementary and secondary education on-reserve, in FNIHB, and in continuing to implement An Act respecting First Nations, Inuit and Métis children, youth and families, which would see communities implementing their own child welfare solutions
IYR welcomes multi-year investments in the MMIWG Initiative (p. 138) while noting that programs and services that support Indigenous youth, that implement Jordan's Principle, and that address the legacy of residential schools similarly need stable funding beyond this fiscal year and the next
The SEU does not contain commitments on the implementation of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) or the Truth and Reconciliation Commission’s (TRC) 94 Calls to Action, with minimal commitments to reconciliation more broadly IYR continues to advocate for UNDRIP and the TRC 94 Calls to Action to be implemented meaningfully, with intentional space for Indigenous youth to lead in their advancements
IYR also encourages the Government of Canada to consider youth-specific investments that go beyond their participation in the economy and workforce, and which help empower all youth in all aspects of their lives In particular, we continue to call for budgets that reflect the distinct needs and realities of Indigenous youth and for the supports they have called for in building their futures.
IYR will continue to emphasize this need for long-term, sustainable funding to meaningfully meet the mission of reconciliation and will continue to find pathways for Indigenous youth to lead this work.
In our Barometer 2024 project, we looked at how Indigenous youth envision their futures and the supports they need in achieving their goals. Check it out here!
For more information, to let us know your thoughts, or to suggest a topic for the IYR Explains series, please contact:
Tija Hauta Research Manager, Centre for Indigenous Policy and Research tija@indigenousyouthroots.ca
