Contributions to support infrastructure for First Nations children

Table of contents

  1. Summary
  2. Legal and policy authority
  3. Purpose and objectives
  4. Eligible funding recipients
  5. Eligible activities and expenditures
  6. Annual maximum amounts payable
  7. Stacking provisions
  8. Basis and timing of payment
  9. Application requirements and assessment criteria
  10. Redistribution of funding
  11. Due diligence in managing and administering the transfer payment guidelines
  12. Official languages
  13. Intellectual property
  14. Terms and conditions effective date

1. Summary

1.1 General context

Canada has a legal obligation to implement Jordan's Principle and is committed to do so in accordance with Canadian Human Rights Tribunal (CHRT) orders. Jordan's Principle is a means of addressing the jurisdictional gaps and disputes that have been a barrier to equal access by First Nations children and families to health, social and education products, services and supports. Canada is obliged to ensure substantively equal service levels for First Nations children that account for the best interest of the child in light of their particular needs.

On January 26, 2016, the CHRT found that Canada discriminated against First Nations children in its underfunding of the First Nation Child and Family Services program. The CHRT also ordered Canada "to cease applying its narrow definition of Jordan's Principle and to take measures to immediately implement the full meaning and scope of Jordan's Principle" (2016 CHRT 2). The ruling specifically noted capital as an area requiring redress. The CHRT has issued various orders respecting Jordan's Principle since that time (for example, 2016 CHRT 10, 2016 CHRT 16, 2017 CHRT 14, 2017 CHRT 35, 2020 CHRT 20, 2021 CHRT 41, and 2022 CHRT 8), which can be found on the CHRT website. Canada continues to address its legal obligations under such orders. In addition, the implementation of Jordan's Principle is informed by broad policy objectives such as the United Nations Declaration on the Rights of Indigenous Peoples Act and the Act respecting First Nations, Inuit and Métis children, youth and families.

The provision of contributions for infrastructure required to support the delivery of Jordan's Principle stems predominantly from the CHRT orders on major capital (2021 CHRT 41).

  • On August 26, 2021, the CHRT issued a 'letter-decision' pertaining to issues that had been before the CHRT for some time, including major capital
  • On November 16, 2021, the CHRT issued 2021 CHRT 41
  • On January 18, 2022, the CHRT amended its orders under 2021 CHRT 41 to reflect an agreement reached by the parties to the complaint and Canada

These consent orders require Canada to fund the full cost of planning, purchase and construction of capital assets to support the delivery of First Nations Child and Family Services or for the delivery of services under Jordan's Principle. Where there is a conflict between these terms and 2021 CHRT 41, the Order will prevail.

Jordan's Principle is not a departmental program with its own terms and conditions. Instead, Jordan's Principle uses multiple Indigenous Services Canada's (ISC) terms and conditions that are in place to support and enable the delivery of funding for requested health, social, and education products, services, and supports to First Nations children. In keeping with this approach, these terms and conditions, along with the current terms and conditions for the Child and Family Services Program, will be used to facilitate the provision of funding to support the delivery of Jordan's Principle on-reserve, in the Northwest Territories, and in Yukon in accordance with 2021 CHRT 41. ISC will also fund capital needs and feasibility studies in relation to the delivery of Jordan's Principle services on-reserve, in the Northwest Territories, and in Yukon, and off-reserve where these services are eligible under Jordan's Principle in accordance with 2021 CHRT 41.

These terms and conditions should be read in conjunction with the First Nations Child and Family Services Program and Jordan's Principle - Capital Program Delivery Guidance.

Information on how to submit a capital request under Jordan's Principle can be found at Funding for capital assets: Jordan's Principle and First Nations child and family services

2. Legal and policy authority

Department of Indigenous Services Act, S.C. 2019, c. 29, s.336, s. 6(2)(h)

3. Purpose and objectives

Contributions related to infrastructure to eligible recipients under Jordan's Principle will support the full cost of purchase, construction, or renovation of assets that are underway or ready to proceed (for example, has relevant First Nations approvals as determined by relevant First Nations and for which feasibility and design work is complete), to provide safe, accessible, confidential and culturally- and age-appropriate spaces that are needed to support the delivery of Jordan's Principle services to First Nations children on reserve, including in Ontario and to First Nations children in the Northwest Territories and in Yukon.

Contributions will also support capital needs assessments and feasibility studies regarding the purchase and/or construction of capital assets to provide safe, accessible, confidential, and culturally- and age-appropriate spaces for the delivery of Jordan's Principle services on-reserve, including in Ontario, in the Northwest Territories and in the Yukon and off-reserve where these services are eligible under Jordan's Principle.

4. Eligible funding recipients

The following classes of funding recipients are eligible for funding under this transfer payment authority:

5. Eligible activities and expenditures

5.1 Eligible activities

To be eligible, the full and/or partial cost for the purchase, construction or renovation of a capital asset must be underway and/or ready to proceed (that is to say, has relevant First Nations approval and for which feasibility and design work has been completed). The capital asset must also support spaces that are safe, accessible, confidential, and culturally- and age-appropriate, and it must be used for the delivery or coordination of Jordan's Principle services to eligible First Nations children to address unmet health, education, and social needs. Some examples include:

  • health needs: spaces for provision of unmet health services, including mental health programming that need capital accommodation
  • education needs: spaces for delivery of education and early education services
  • social needs: for delivery of cultural and language services, respite services, land-based activities and others

To be eligible, capital needs assessment and feasibility studies for capital assets must show how the capital asset will support the delivery of services funded under Jordan's Principle contribution agreements.

5.2 Eligible costs

Eligible costs include:

  • capital needs assessments for the purchase, construction, or renovation of assets
  • development and delivery of a functional program (that is to say, a services operational plan or "master program") - covering how funded Jordan's Principle services identified will be operationalized, including occupancy by community-based and visiting health professionals, technicians, representatives, and other support staff
  • development of a functional plan (spaces in metres squared) - directly mapping funded Jordan's Principle services and occupancy to the number, size and type of spaces required
  • capital feasibility studies for the purchase, construction, or renovation of assets, including environmental and geotechnical assessments, land surveys, and other technical studies
  • design costs
  • purchase, construction, or renovation of assets that are ready to proceed (as set out in accordance with the Funding for capital assets: Jordan's Principle and First Nations child and family services)
  • other auxiliary capital project costs such as:
    • initial furniture and equipment that is fit for purpose
    • information technology, and other equipment to furnish new spaces
    • site preparation
    • lot servicing and site clean-up after construction
    • building hook-ups to water, sewer, gas, and electrification
    • upgrades to roads to enable access to the building
  • professional fees (for example, technical personnel, architects, consultants, and contractors to design, develop, complete or monitor the project, engineering, manufacturing or building of capital project facilities and structures)

5.3 Ineligible costs

Taxes for which the requestor is eligible for a tax rebate and all other costs eligible for rebates (for example, Goods and Services Tax (GST) rebates or eco-retrofits to reduce greenhouse gas emissions which may be eligible under other federal funding) are not eligible.

6. Annual maximum amounts payable

For the purposes of these terms and conditions, ISC has an exception to item 8 of Appendix E of the Directive on Transfer Payments, until the longer-term approach for Jordan's Principle is implemented.

7. Stacking provisions

The maximum level (stacking limits) of total Canadian government funding (federal, provincial, territorial and municipal assistance for any 1 activity, initiative or project) for recipients will not exceed 100% of eligible expenditures under these terms and conditions. The stacking limits must be respected when assistance is provided.

8. Basis and timing of payment

Contributions will be made in accordance with Appendix K of the Directive on Transfer Payments on a fixed, flex and block funding approach. As Jordan's Principle is a legal obligation, eligible activities will be funded at cost.

8.1 Exceptional authority for retroactive funding

This exceptional statement is required in order to reimburse recipients for eligible expenditures incurred related to the construction of capital assets for Jordan's Principle that are completed, underway or are ready to proceed and were undertaken prior to the signing of the funding agreement. Under this exceptional authority, eligible expenditures and activities incurred by eligible recipients may be retroactively reimbursed commencing August 26, 2021.

9. Application requirements and Assessment Criteria

ISC will apply the following principles when assessing the eligibility of requests for funding to purchase, construct or renovate capital assets, or requests for pre-capital planning of capital assets to support the delivery of Jordan's Principle services to First Nations children:

10. Redistribution of funding

Where a recipient further distributes contribution funding to an agency or a third party (such as an authority, board, committee, or other entity authorized to act on behalf of the recipient), the recipient shall remain liable to the department for the performance of its obligations under the contribution agreement. Neither the objectives of the initiative nor the expectations of transparent, fair and equitable services shall be compromised by any delegation or redistribution of contribution funding.

Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.

11. Due diligence in managing and administering the transfer payment guidelines

Indigenous Services Canada ensures that it has financial resources for the effective, management, administration, evaluation, and contribution audit activities related to funding under these terms and conditions.

11.1 Performance Measurement

As per the Policy on Results (2016), results information, including expected outcomes, performance indicators, and data collection sources and methods, are outlined in the Jordan's Principle-Child First Initiative Performance Information Profile. Results for this authority reflect indicators used to monitor the progress of infrastructure projects funded through Jordan's Principle, as they relate to the broader performance measurement strategy for Jordan's Principle initiative. Where applicable, performance information related to this authority may be reported publicly through departmental planning and reporting.

Expected results:

  • First Nations children's health, social and/or education needs are met

Performance indicators:

  • The percentage of capital project proposals received through the Jordan's Principle initiative that are responded to within 30 days
  • The number of Jordan's Principle capital projects that have been completed

11.2 Transfer payment reporting requirements

The contribution agreement contains provisions that outline the financial and non-financial reporting required from recipients. The level and frequency of reporting will vary depending on the contribution agreement.

Mechanisms will be utilized to ensure that adequate reporting relationships, policy directions and administrative processes are in place to support the implementation, monitoring, and risk management of the transfer payments to meet the accountability of the recipient, the department and of the Minister.

12. Official languages

As a federal institution as defined in the Official Languages Act, RSC 1985, c 31 (4th Supp) (OLA), ISC must comply with the provisions of this Act and other related instruments. The requirements will be considered at an early stage in the development of the initiative. ISC will ensure that the design and the delivery of programs or initiatives respect the obligations of the Government of Canada included in this Act. ISC will ensure that this initiative provides benefits to all First Nation children in Canada, whether they are part of a French or English minority community or not. ISC will also ensure that non-Indigenous French and English minorities are informed. In addition, ISC will also ensure, when required and applicable, compliance with the Indigenous Languages Act, SC 2019, c 23

13. Intellectual property

Where intellectual property is generated by funding recipients under transfer agreements entered into with Canada under these terms and conditions, ISC will stipulate the following conditions in any grant or contribution agreement:

  1. that funding recipients will retain ownership of any intellectual property created by them in carrying out the funded initiative; and
  2. that Canada will be given a royalty-free license to exercise all intellectual property rights for any Crown purpose with respect to all activity reports and records, financial reports and records, and evaluation reports and records and other records or communications related to the administration of this agreement that are delivered by the recipient to Canada under the agreement.

This approach is consistent with the Directive on Transfer Payments.

14. Terms and conditions effective date

These terms and conditions come into effect on February 2, 2023.

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