In an announcement following a rare joint first ministers-Indigenous leaders summit, Carney said his government would allow the First Nations Financing Authority to deal directly with Indigenous special purpose vehicles.
Prime Minister Mark Carney says he’s asking his ministers to work with First Nations to start a process that “moves Canada beyond the Indian Act.”
He made the announcement following a rare joint first ministers-Indigenous leaders summit — the first since the 2005 Kelowna Accords meeting.
It comes as Carney’s government grapples with legislation to overhaul the Indian Act.
Bill S-2 was first tabled by the government to respond to a court order demanding that Ottawa restore Indian status to descendants of those who were enfranchised.
Amendments to the Indian Act made in 1985 ended the practice of enfranchisement, whereby First Nations people who wanted to own land, vote or enjoy other rights had to give up their status. But it didn’t allow people whose ancestors were enfranchised to obtain status or pass it down to their descendants.
Senators amended S-2 last fall to also end the second-generation cutoff, and allow status to be passed on to a child if at least one of their parents were recognized as having status.
But that revamped version of S-2 has crawled through the House since it was passed by the Senate last December.
It’s currently at committee, and it’s unclear when it will return to the House.
Manitoba Premier Wab Kinew said he told Carney on Monday to scrap the Indian Act, saying Canada should no longer have a “race-based form of identification.”
Carney said that Kinew raised an “important part of that conversation” and promised to explore a new path beyond the India Act.
He said he had tasked his ministers to work with First Nations to “chart that path together.”
Carney added that his government would have a response to S-2 soon.
Carney also announced that his government is preparing to grant new powers to a First Nation-led lending institution to spur investment in major projects. Specifically, he said he would allow the First Nations Financing Authority to deal directly with Indigenous special purpose vehicles.
Carney said this change would “make it easier for First Nations to secure financing to invest in major projects and share in the returns.”
The FNFA is typically only allowed to work with individual First Nations. A special purpose vehicle can be used when several First Nations want to partner together, including to secure equity positions in major projects, such as the new Pacific Link pipeline.
Carney’s change would allow the FNFA to lend directly to Indigenous-owned bodies that are backstopped by federal or provincial loan guarantees.
The prime minister also announced that his government would start working with the Assembly of First Nations, Indigenous rights-holders, and First Nations financial institutions on new “revenue sharing mechanisms,” including a potential sovereign wealth fund.
He also pledged $260 million over four years to establish the new partnerships for Indigenous workforce readiness fund, which will provide financial support to connect Indigenous peoples with job opportunities created by major projects.
This meeting comes as Carney’s government works to speed up major project approvals and development — efforts some First Nations chiefs say threaten their rights.
Tensions between Ottawa and First Nations spiked soon after Carney was elected in 2025 when his government passed legislation to create a new office tasked with streamlining major project developments and approving projects within one year.
First Nations leaders warned the compressed timelines would interfere with their rights and lead to court challenges. Provincial governments have enacted similar legislation.
The prime minister also announced $630 million over four years — alongside $250 million in ongoing annual funding — to renew and expand First Nations and Inuit policing program agreements.
He said Ottawa would also provide an additional $140 million to fund “crime prevention and culturally sensitive community safety initiatives.”
with files from the Canadian Press
More to come…