Question Period Note: Disaster Financial Assistance Arrangements (DFAA) Financial Support to the Northwest Territories for the 2023 Fire Disaster

Financial assistance provided to the Northwest Territories for the 2023 Fire Disaster.

• The Government of Canada recognizes the significant loss and hardship residents of the Northwest Territories have suffered due to the 2023 fire season.

• Public Safety Canada has provided an $84.3 million advance payment to the Northwest Territories through the DFAA, part of the total estimated $186,952,682 federal share. Officials continue to work closely together to address the Territory’s needs.

• The Government of Canada also matched $2,547,660 in donations to the United Way of the Northwest Territories under the 2023 NWT Emergency Response Campaign. This funding was directed to support affected residents.

• This significant increase in disaster events highlights the need to find innovative and sustainable ways to mitigate against disasters and to strike a better balance of responsibility for disaster costs.

• The Government of Canada is currently undertaking the modernization of the DFAA in collaboration with provinces and territories to better incentivize mitigation, support recovery, and build back more resilient communities.

In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements (DFAA), administered by Public Safety Canada. When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provides the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.

Since the inception of the program in 1970, the Government of Canada has paid out close to $9 billion in post-disaster assistance to help provinces and territories with the costs of response and of returning public infrastructure and personal property to pre-disaster condition.

Province/territory Paid to Date
Newfoundland and Labrador $211,925,056
Prince Edward Island $24,904,846
Nova Scotia $78,733,206
New Brunswick $222,232,087
Quebec $1,422,098,254
Ontario $238,951,009
Manitoba $1,322,896,845
Saskatchewan $642,937,418
Alberta $1,345,058,894
British Columbia $2,805,638,650
Yukon $20,518,314
Northwest Territories $177,752,489
Nunavut $4,507,509

The provincial or territorial government design, develop and deliver disaster financial assistance, deciding the amounts and types of assistance that will be provided to those that have experienced losses. The DFAA places no restrictions on provincial or territorial governments in this regard. However, the DFAA also sets out what costs will be eligible for cost-sharing with the federal government.

A province or territory may request Government of Canada disaster financial assistance when eligible expenditures exceed $3.75 per capita, effective January 1, 2024 (based on the provincial or territorial population). Eligible expenses include, but are not limited to, rescue operations, restoring public works and infrastructure to their pre-disaster condition, as well as replacing or repairing basic, essential personal property of individuals, small businesses and farmsteads.

The percentage of eligible costs reimbursed under the DFAA is determined by the cost-sharing formula clearly outlined in the arrangements and is up to 90% of eligible expenditures.

The Government of Canada may provide advance, interim and/or final payments to provincial and territorial governments as the reconstruction of major infrastructure proceeds and funds are expended under the provincial/territorial disaster assistance program. All provincial or territorial requests for advance and interim payments are subject to risk assessments and final payments are subject to federal audit to ensure that cost sharing is provided for eligible expenditures according to the DFAA guidelines.

Budget 2023 announced $48.1 million over five years, starting in 2023-2024, to identify high-risk flood areas and implement a modernized DFAA program which would incentivize mitigation efforts. This work is being informed by the findings and recommendations of an independent advisory panel and the input of provinces and territories. A modernized program is expected in April 2025.

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