The New Fiscal Relationship (NFR) Grant is designed to support First Nations to build stronger communities over the long term It enables Nations to plan over several years.
What is the 10-Year Grant for First Nations?
The NFR 10-Year Grant is a funding mechanism that provides more flexibility and predictability in how a First Nations government uses its funding to address the Nation's needs and priorities. Most programs which provide core funding are covered under the grant.
The 10-Year Grant allows First Nations to:
- Better manage finances over a longer period to meet changing community needs
- Keep unspent funds (no clawbacks of surplus funds at year end)
- Reduce the amount of reporting and resources needed to manage your finances
- Permit easy transition to the First Nations Fiscal Management Act (FMA)
Funding escalator announced in Budget 2021
Canada's Budget 2021 confirmed funding for a new annual NFR Grant escalator starting in 2021-22. Escalation will be based on inflation and the population of each community, but a minimum of two per cent annual growth will be provided to ensure that First Nations within the grant receive stable and predictable funding.
How is the FMB involved?
Indigenous Services Canada and the Assembly of First Nations (AFN) co-developed the NFR 10-Year Grant. This was a recommendation in the report "A New Approach: Co-development of a New Fiscal Relationship Between Canada and First Nations".
The FMB's governance and finance practices were selected by Indigenous Services Canada and the AFN as the framework that should be used in the NFR Grant.
As part of a memorandum of understanding dated November 6, 2018 between the FMB, the Minister of Indigenous Services Canada, and the Minister of Crown-Indigenous Relations, the FMB accepted the role of evaluating whether a First Nations government that expresses interest in a 10-Year Grant meets the eligibility criteria.
The FMB uses its 10-Year Grant Eligibility Policies and Guidelines to do this work. The final decision on whether a grant is offered to a First Nations government remains with Indigenous Services Canada.
How the FMB supports First Nations
- Provide advice and support, as well as access to FMB-developed tools, during the 10-Year Grant funding application process
- Support the development of a Financial Administration Laws (FAL), Financial Administration By-laws (FAB), or a Financial Administration Law based on Inherent Rights (IR FAL).
- Confirm that the FAL, FAB, or IR FAL meets the FMB's minimum standards and the grant eligibility criteria
- Analyze the financial performance of First Nations and confirm whether grant eligibility criteria are met
- Prepare and issue compliance opinion reports on grant eligibility to Indigenous Services Canada
- Provide access to FMB-developed tools and templates to assist First Nations in bringing their FAL, FAB, or IR FAL to life
- Provide Capacity Development services to First Nations scheduled to the FMA to support bringing the FAL to life and continued grant eligibility
- First Nations governments that choose to enact a FAB and remain under section 83 of the Indian Act, or who choose to enact an IR FAL on their own inherent lawmaking authority, will have access to limited Capacity Development services. This service is intended to support First Nations governments with implementing their FAB or IR FAL, in order to maintain their grant eligibility
- Conduct procedures to determine the extent to which minimum provisions of a FAL, FAB, and IR FAL have been implemented
- All FMB services are provided at no cost to the First Nation
See how your First Nation can qualify for the 10-Year Grant