Question Period Note: Infrastructure on Reserve

N.A.

• ISC works in partnership with First Nations to address the infrastructure gap on reserve and build the infrastructure needed to support well-being and economic prosperity.

• In 2024-2025, ISC invested over $4 billion in targeted infrastructure funds, resulting in the completion of 1,361 projects in First Nation communities.

• The Government of Canada will continue to work in partnership with First Nations to advance projects that strengthen communities and drive long-term economic growth, explore new innovative approaches to investments, and advance transfer of infrastructure service delivery to First Nations control.

The Government of Canada is working with First Nation partners to improve how infrastructure programs are delivered on reserve. In 2022, ISC sent surveys to 564 First Nations asking them to identify and prioritize their on-reserve infrastructure needs. A total of 405 communities, representing 72% of First Nation communities responded.

The AFN was also engaged and developed a comprehensive cost report to close the First Nations infrastructure gap. To support the development of the AFN’s report, ISC shared the aggregated and anonymized data collected through the Department’s engagements with First Nations. In the report, the AFN estimated the cost to close the infrastructure gap would be $349.2 billion. The AFN also called for moving away from project-based investment approaches, guaranteeing reliable funding, and co-developing a self-governed First Nations Infrastructure Bank, amongst other measures.

In 2023 and 2024, ISC engaged with First Nation partners, financial institutions, and other federal departments on ways to improve how infrastructure programs on reserve are delivered. First Nation partners emphasized the need for: flexible, long-term, and predictable funding to maintain infrastructure; improved financial tools, such as monetization; enhanced capacity through sufficient funding and tools to support infrastructure planning and management, such as lifecycle funding; and consolidated ISC funding programs for greater efficiency. ISC continues to work with other federal departments to improve coordination, streamline infrastructure funding processes, and maximize federal on-reserve investments.

First Nation partners also echoed the need to transfer housing and infrastructure service delivery. ISC introduced a housing and infrastructure service delivery transfer initiative in 2017. Through an aggregate approach that recognizes the value of economies of scale, ISC has been working with First Nation organizations, with a mandate from First Nations leadership, to support the development of new service delivery models.

A 2024 report by the AFN and the Conference Board of Canada found that closing the infrastructure gap in First Nations communities could generate $635.3 billion in economic activity—returning $1.82 for every dollar spent. Over seven years, this investment could create 2.4 million full-time jobs, $202.7 billion in labour income, $86.8 billion in tax revenue, and add $308.9 billion to Canada’s GDP.

A second report, released in May 2025, by the AFN and the Conference Board of Canada, emphasizes that strategic investments in First Nations infrastructure will yield substantial long-term benefits across key sectors. These include improved health outcomes through better housing and water systems, enhanced educational attainment via upgraded school facilities, increased climate resilience through energy-efficient design, strengthened self-determination by empowering Indigenous governance, and expanded economic equity through support for Indigenous businesses and workforce development.

Since 2016 and as of June 30, 2025, $16.77 billion (excluding operating expenses) of ISC targeted infrastructure funding has been invested toward 13,280 projects (7,478 completed and 5,802 ongoing) that will benefit 613 communities, serving approximately 483,000 people.

If pressed on Budget 2025 announcement
• Through Budget 2025, the Government of Canada will continue to support Indigenous communities to address the unique housing challenges they face.

• First Nations face significant barriers in accessing financing for infrastructure on reserve. To address this, Budget 2025 proposes a new pilot to monetize federal transfers.

• ISC will continue to work with First Nation partners to advance long-term sustainable solutions to support access to infrastructure in First Nation communities. If pressed on the economic impacts of closing the gap
• In May and November of 2024, the AFN released two reports, outlining “Benefits for All Canadians: Economic Impact of Closing the Infrastructure Gap,” prepared by the Conference Board of Canada.

• The report found that closing the infrastructure gap could generate hundreds of billions in economic activity - returning $1.82 for every dollar spent. Investments would also yield substantial long-term benefits including improved health outcomes, enhanced educational attainment, and expanded economic equity.

• ISC will continue working with First Nations to address infrastructure investments on reserve. If pressed on 2024-2025 targeted infrastructure investments

• The Government of Canada’s targeted infrastructure investments in 2024-2025 resulted in improved housing supply, climate resilience and community well-being.
• On-reserve infrastructure completed in 2024–2025 included over 4,000 new or renovated housing units, 8 new schools, over 200 health-related infrastructure projects, and more than 100 other community infrastructure projects including energy, roads and bridges, connectivity and climate resiliency.

• Over 30% of the total targeted infrastructure investments support capacity-building projects in First Nations, advancing efforts towards self-determination.