Chapter 4:
Advancing Reconciliation and Building a Canada That Works for Everyone

Building a Canada that works for everyone requires a commitment to addressing past wrongs and working to support a brighter future for all Canadians from coast to coast to coast.

In Budget 2023, the federal government is continuing to build on the progress we have made together since 2015 on walking the path of truth and reconciliation with Indigenous Peoples, building strong, diverse communities, and protecting the environment and fighting climate change. We will continue building a country where everyone can reach their potential.

With new measures and important investments, Budget 2023 will help everyone share in the opportunities and prosperity that Canada provides.

Key Ongoing Actions

Investments made in and since Budget 2022 to advance reconciliation, protect the environment, and build stronger and more inclusive communities across Canada include:

• $4.9 billion to enhance and reform services for Indigenous children, expand Indigenous‑led mental wellness services, and support communities as they respond to and heal from the ongoing impact of residential schools;

• 4.3 billion over seven years to build and repair housing in Indigenous communities, including those who are self-governing and modern treaty holders;

• $1.6 billion over six years and $315 million ongoing to welcome 500,000 new permanent residents each year by 2025, as well as an additional $50 million to address immigration application backlogs;

• $1.6 billion over five years, starting in 2023-24, to implement Canada's first National Adaptation Strategy, which is currently being finalized with input from provinces, territories, National Indigenous Organizations, and other stakeholders;

• 1.1 billion over seven years, starting in 2023-24, to conserve and protect nature in Canada and around the world, including $800 million to support up to four Indigenous-led conservation initiatives; and,

• $100 million since 2020 to increase the federal contribution to legal aid services.

Investments in Indigenous Priorities

Since 2015, the federal government has worked with Indigenous partners to advance meaningful reconciliation with First Nations, Inuit, and Métis communities. Real progress has been made to improve the quality of life in Indigenous communities and close gaps between Indigenous and non‑Indigenous people. But there is more work to do.

Among the most significant measures, the government has invested more than $5.7 billion since 2015 to build and repair at least 123 new water and wastewater treatment plants, repair or upgrade 658 others, and support the effective management and maintenance of water systems. Through these investments, First Nations have lifted 138 long-term drinking water advisories and prevented 244 short-term drinking water advisories from becoming long-term on public systems on reserves as of February 3, 2023, and plans are in place to lift the remaining 32.

Since 2015, the federal government has made significant distinctions-based investments to respond to the unique histories, interests, and priorities of First Nations, Inuit, and Métis communities. Through Budget 2023, the government will continue to advance reconciliation by supporting healthy communities and investing in self-determined solutions.

Key Investments in First Nations Priorities Since 2015

• $29 billion for child welfare services, including funding to implement An Act respecting First Nations, Inuit and Métis children, youth and families, to maintain and enhance the First Nations Child and Family Services program, and to support ongoing negotiations towards additional program reforms;

• Nearly $6.4 billion to meet the needs of First Nations children through Jordan's Principle;

• $6.7 billion to support primary care and public health on reserve, distinctions-based mental health care, and non-insured health benefits. This also includes $1.2 billion in infrastructure funding, which has already supported 248 health-related projects in First Nations communities;

• Over $5.9 billion for elementary and secondary education to help First Nations children living on reserve receive high-quality schooling. This also includes $1.8 billion in infrastructure funding, which has already supported 261 school facility projects;

• Over $5.7 billion to address critical infrastructure gaps related to water and wastewater, and accelerate progress to end long-term and short-term drinking water advisories in First Nations communities on reserve;

• Over $4 billion to support First Nations housing on reserve;

• Almost $2.5 billion to support community infrastructure on reserve;

• Nearly $2.5 billion in funding to build an early learning and child care system that meets the needs of First Nations families;

• $991 million for First Nations and Inuit policing and police facilities to provide access to local and culturally sensitive police services that make communities safer; and,

• $417 million targeted for First Nations post-secondary education.

Key Investments in Inuit Priorities Since 2015

• $25 million to implement the Inuit Nunangat Policy, which was co-developed with Inuit and will guide the federal government in design, development, and delivery of new and renewed federal programming, policies, and initiatives;

• Over $1.3 billion to support housing in Inuit communities;

• $5.1 billion to reduce tuberculosis, provide non-insured health benefits, and support distinctions-based mental health care;

• More than $230 million for Inuit communities to build an early learning and child care system that meets the needs of Inuit families;

• $70 million to support the National Inuit Suicide Prevention Strategy;

• $991 million for First Nations and Inuit policing and police facilities to provide access to local and culturally sensitive police services that make communities safer; and,

• More than $125 million targeted for Inuit post-secondary education.

Key Investments in Métis Priorities Since 2015

• More than $860 million for Métis communities to build an early learning and child care system that meets the needs of Métis families;

• $690 million to support housing in Métis communities;

• More than $400 million towards Métis communities skills and employment training, economic development, and to support the startup and expansion of Métis small and medium-sized businesses;

• $867 million to support distinctions-based mental health care and the monitoring and treatment of chronic diseases; and,

• More than $360 million targeted for Métis post-secondary education.

Through Budget 2023, the government will continue to advance reconciliation by supporting healthy communities and self-determined solutions.

4.1 Self-Determination and Prosperity for Indigenous Peoples

Advancing Indigenous self-determination is critical to Canada's future. It strengthens nation-to-nation, government-to-government, and Inuit-Crown relationships, accelerates decolonization, moves us all forward on reconciliation, and ultimately creates more vibrant and prosperous Indigenous communities.

Indigenous governments must be able to set and implement priorities respecting their communities, lands, and resources. Indigenous Peoples, businesses, and communities must have the opportunity to fully participate in the economy, and build opportunities for themselves and future generations in the ways they see fit, consistent with their constitutionally protected rights.

Budget 2023 is investing in measures that will continue to advance service transfer to Indigenous governments and institutions, and unlock opportunities to advance economic reconciliation for Indigenous Peoples across Canada.

Supporting Indigenous Governance, Capacity, and Participation in Decision-Making

First Nations governments need resources to meet the needs of their communities and deliver the services and programs their communities rely on. Supporting First Nations governments is an essential part of supporting self-determination.

• Budget 2023 proposes to provide $76.3 million in 2023-24 to Indigenous Services Canada to continue to support the administrative capacity of First Nations governments and tribal councils delivering critical programs and services to their members.

Indigenous participation in northern environmental decision-making processes is an example of self-determination in action. Major resource and infrastructure projects can offer Indigenous communities and other Northerners good jobs, revenue, and business development opportunities.

Support for Indigenous and public participation in environmental assessments of these projects helps Indigenous Peoples inform decisions that affect their lands, communities, and futures. This also helps ensure approved projects respect Indigenous rights and that local communities—many of them rural and remote—experience their benefits.

• Budget 2023 proposes to provide $19.4 million over five years, starting in 2023-24, to Crown-Indigenous Relations and Northern Affairs Canada for the Northern Participant Funding Program to increase the participation of Indigenous Peoples and other Northerners in environmental and regulatory assessments of major projects.

• Budget 2023 also proposes to provide $1.6 million over two years, starting in 2023-24, to the Canadian Northern Economic Development Agency for the Northern Projects Management Office to increase capacity for federal participation in environmental assessments and consultation with Indigenous communities on major projects in the territories.

Advancing Self-Determination of Métis Communities

Advancing self-determination requires a distinctions-based approach to ensure that the unique rights and interests of First Nations, Inuit, and Métis communities are affirmed and implemented. The federal government is proud of the significant progress being made towards renewed government-to-government relationships with Métis communities, based on the recognition of rights, respect, co-operation, and partnership.

In February 2023, the Minister of Crown-Indigenous Relations signed updated Self-Government Recognition and Implementation Agreements with the Métis Nation of Alberta, the Métis Nation–Saskatchewan, and the Métis Nation of Ontario. These historic agreements came after more than a century of Métis ancestors fighting for recognition. These agreements, in addition to an agreement signed with the Manitoba Métis Federation in July 2021, formally recognize each Métis partner as the representative government of the Métis Nation in their respective provinces, with jurisdiction over core governance and other internal matters.

The government will continue its collaborative work with these governments to conclude self-government treaties, guiding implementation of their unique visions for Métis self-determination.

Tax Arrangements With Indigenous Governments

Mutually beneficial tax arrangements with interested Indigenous governments build strong fiscal relationships and support self-determination through revenues that Indigenous governments can invest in what matters most to their communities.

The federal government remains committed to negotiating mutually beneficial tax agreements with interested Indigenous governments, including implementing the First Nations Goods and Services Tax within their settlement lands or reserves and, with interested self-governing Indigenous governments, to enable the implementation of personal income taxes within their settlement lands.

The federal government is also making progress with Indigenous communities and organizations on a voluntary fuel, alcohol, cannabis, and tobacco (FACT) sales tax framework. The FACT framework would provide a new, flexible option for interested Indigenous governments to exercise tax jurisdiction within their reserves or settlement lands. Since fall 2022, productive discussions have taken place with Indigenous partners, and Indigenous communities have expressed interest in moving forward collaboratively.

The federal government also continues to encourage, and will help facilitate, taxation arrangements between interested provincial or territorial and Indigenous governments.

The government will also continue to explore the potential role of additional tools, including tax arrangements, to enable Indigenous communities to meaningfully benefit from resource development.

Building an Economy That Works for Indigenous Peoples

Economic reconciliation is critical to Indigenous self-determination. To move forward and build prosperity, systemic barriers must be removed and supports put in place for Indigenous communities to fully participate in the economy in line with their constitutionally protected rights.

• Budget 2023 proposes to provide $5 million in 2023-24 to Indigenous Services Canada to support the co-development of an Economic Reconciliation Framework with Indigenous partners that will increase economic opportunities for Indigenous Peoples, communities, and businesses.

Building on the strong foundation set out in recent Indigenous-led initiatives, such as the National Indigenous Economic Strategy and the First Nations Financial Management Board's RoadMap project, the Framework will help to define the role of federal and Indigenous organizations in advancing economic reconciliation through measures that reflect the unique needs, perspectives, and interests of Indigenous Peoples.

The federal government is committed to further improving the quality and consistency of benefits that Indigenous communities derive from major projects in their territories, including through advancing opportunities for Indigenous communities to participate as partners in major projects.

• Budget 2023 proposes to provide $8.7 million in 2023-24 to Natural Resources Canada to support deeper engagements with Indigenous partners, including Indigenous rights-holders, towards the development of the National Benefits-Sharing Framework.

• Budget 2023 announces that the Canada Infrastructure Bank will provide loans to Indigenous communities to support them in purchasing equity stakes in infrastructure projects in which the Bank is also investing. These loans will be sourced from the Canada Infrastructure Bank's existing funding envelope.

The government will also continue to explore, through engagement on the National Benefits-Sharing Framework, additional federal supports to increase access to capital for Indigenous groups to invest in major resource projects.

The federal government is committed to supporting initiatives that return control and decision-making over the use of First Nations lands back to First Nations communities. This supports economic growth and self-determination for First Nations, and moves us further along the path of reconciliation.

• Budget 2023 proposes to provide $30 million over five years, starting in 2023‑24, to Indigenous Services Canada to enhance the Reserve Land and Environment Management Program, ensuring First Nations can develop capacity to exercise increased responsibility over their lands, resources, and environment.

• Through Budget 2023, the government reaffirms its commitment to negotiate a renewed operating funding formula with the Lands Advisory Board to ensure the continued growth and success of First Nation Land Management. 

• Budget 2023 also proposes to provide $35.3 million over three years, starting in 2023-24, to Crown-Indigenous Relations and Northern Affairs Canada and Natural Resources Canada to co-develop, with the Lands Advisory Board, a new First Nations-led National Land Registry that will provide communities in First Nation Land Management with more opportunities to realize the economic benefits arising from local control over their lands. 

In December 2022, the Framework Agreement on First Nation Land Management Act received Royal Assent, building on the Framework Agreement on First Nation Land Management's 25-year record of empowering First Nations to exercise their jurisdiction by opting out of Indian Act provisions related to land management.

4.2 Investing in Indigenous Communities

Supporting strong, healthy Indigenous communities means confronting the harms of the past—and the challenges facing First Nations, Inuit, and Métis communities today—with forward-looking, Indigenous-led solutions.

Budget 2023 includes new investments to strengthen accessible, culturally appropriate health care, to support Indigenous communities where everyone, including the most vulnerable, feels safe and supported, and to support community-led efforts to revitalize language, culture, and traditions.

Indigenous Peoples deserve access to high-quality and culturally safe health care services, no matter where they live. The federal government is working with Indigenous partners, provinces, and territories to co-develop distinctions-based Indigenous health legislation.

On February 7, 2023, the federal government announced major new investments in public health care, and is working with provinces and territories on delivering improvements that people in Canada—including Indigenous Peoples—expect and deserve. A key principle in bilateral agreements with provinces and territories is that Indigenous Peoples everywhere in Canada have the right to fair and equal access to health services, free from racism and discrimination.

As part of the federal government's plan to strengthen Canada's universal public health care system, the government is investing $2 billion in new, additional funding over ten years for a distinctions-based Indigenous Health Equity Fund. This fund will address the unique challenges Indigenous Peoples face when accessing health care services, and support immediate and long-term Indigenous health priorities. Building on this investment, Budget 2023 proposes additional new measures to maintain essential health care services. Budget 2023 proposes to provide:

• 810.6 million over five years, beginning in 2023-24, to support medical travel and to maintain medically necessary services through the Non‑Insured Health Benefits Program, including mental health services, dental and vision care, and medications.

• $16.2 million over three years, beginning in 2023-24, for interventions to reduce rates of tuberculosis in Inuit communities.

Supporting Safe and Affordable Housing in Indigenous Communities

When people have access to safe and affordable housing, they are more economically secure, healthier, and see brighter futures for themselves and their families. Since 2015, the federal government has committed $6.7 billion to support First Nations, Inuit, and Métis housing, including in self-governing and modern treaty communities, $4 billion of which was announced in Budget 2022. The funding so far has supported over 13,000 housing-related projects and home improvement and repairs, and more than 4,600 new homes in Indigenous communities.

Budget 2022 also provided $300 million to support housing in urban, rural, and northern Indigenous communities. As outlined in Chapter 1, Budget 2023 is proposing to build on this initial work with a significant investment of $4 billion over seven years, starting in 2024-25, to implement an Urban, Rural, and Northern Indigenous Housing Strategy, currently under co-development with Indigenous partners.

Together with Indigenous partners, the federal government is accelerating the implementation of the Federal Pathway to Address Missing and Murdered Indigenous Women, Girls and 2SLGBTQQIA+ People. Building on the $2.2 billion provided in Budget 2021, Budget 2023 proposes investments that acknowledge the leadership of families and survivors in this process, and the need to increase accountability and ensure that progress is made. Budget 2023 proposes to provide:

• $20 million over four years, starting in 2022‑23, to support Indigenous-led projects for safer communities through the Pathways to Safe Indigenous Communities Initiative.

• 95.8 million over five years, starting in 2023-24, and $20.4 million ongoing to help Indigenous families access information about their missing and murdered loved ones, and to enhance victim services to support their healing journeys. This funding would renew existing programming and expand it to include support for families of 2SLGBTQI+ Indigenous victims who are men.

• $2.6 million over three years, starting in 2023-24, to support the National Family and Survivors Circle in keeping families and survivors at the centre of the implementation of the National Action Plan and the Federal Pathway.

• $2.2 million over five years, starting in 2023-24, to establish an oversight mechanism to monitor and report on the progress of implementation.

• $1.6 million over two years, starting in 2023‑24, to support the Ministerial Special Representative appointed to provide advice and recommendations on the creation of an Indigenous and Human Rights Ombudsperson.

• 2.5 million over five years, starting in 2023-24, to facilitate and coordinate work on advancing the National Action Plan by establishing a standing Federal-Provincial-Territorial-Indigenous table on Missing and Murdered Indigenous Women, Girls and 2SLGBTQI+ People. This table will provide a specific forum to take action on areas of shared roles and responsibilities regarding Missing and Murdered Indigenous, Women, Girls, and 2SLGBTQI+ People, including prioritizing discussion on how to launch a "Red Dress Alert" to notify the public when an Indigenous woman or two-spirit person goes missing.

The federal government is committed to ensuring that First Nations children have the supports they need to flourish, and that communities are supported in their efforts to keep families together.

Through the implementation of Jordan's Principle, First Nations children are able to access the health, social, and educational supports they need, when they need them. The government continues to work with First Nations partners to advance long-term reforms to ensure that First Nations children will continue to receive timely, high-quality services.

The government also continues to work with First Nations partners on long-term reforms for child welfare, and to support community-led solutions to reduce the number of children in care and keep children and youth connected to their families, their communities, and their culture. In addition, the government is supporting First Nations in developing their own child and family services that reflect their values and traditions under An Act respecting First Nations, Inuit and Métis children, youth and families.

• Budget 2023 proposes to provide $171 million in 2022-23 to Indigenous Services Canada to ensure First Nations children continue to receive the support they need through Jordan's Principle.

• With funding announced in the 2022 Fall Economic Statement, Budget 2023 also provides $444.2 million over three years, starting in 2022-23, to support Peguis First Nation in Manitoba and Louis Bull Tribe First Nation in Alberta to exercise jurisdiction over their child welfare systems and make decisions about what is best for their children and families.

The residential school system attempted to assimilate Indigenous children, forcing them to abandon their languages, cultures, spiritualities, traditions, and identities. The painful legacy of the residential school system lives on today.

The federal government is committed to addressing the harms that continue to affect First Nations, Inuit, and Métis children and their families. On January 18, 2023, the federal government signed an agreement to compensate 325 bands that opted in to the Gottfriedson Band Class litigation to address the collective harms caused by the loss of language, culture, and heritage through the residential school system. The settlement has since been approved by the Federal Court.

•   Budget 2023 provides $2.8 billion as part of the Band Class settlement, to establish a trust to support healing, wellness, education, heritage, language, and commemoration activities. The government will also propose legislative amendments to exclude the income and gains of the trust from taxation.

4.3 Clean Air and Clean Water

We live in the most beautiful country in the world. From the red sand beaches of Prince Edward Island to sweeping Yukon vistas and the mountains of British Columbia, Canadians love our natural environment. We depend on it for our jobs, for clean air and clean water, and for a sense of place in the world.

However, the risks to our environment have never been greater. Climate change threatens nature, our communities, and our economy. Pollution and development continue to harm Canada's remarkable biodiversity.

Building on the significant progress we have made since 2015, Budget 2023 announces new measures to protect our natural environment, fight climate change, and make Canada more resilient to the threats posed by extreme weather.

Fighting Climate Change and Protecting Nature

Since 2015, the federal government has taken significant action to protect the environment, conserve nature and biodiversity, and respond to the threat of climate change. This includes:

• Establishing a federal pollution pricing system that puts money back in the pockets of Canadians;

• Putting Canada on track to conserve 25 per cent of Canada's lands and waters by 2025, and to conserve 30 per cent by 2030;

• Designing an Emissions Reduction Plan that serves as Canada's roadmap to a 40 per cent reduction in emissions by 2030;

• Providing more than $3.6 billion to protect nature and species at risk, and more than $1 billion to protect marine and coastal areas;

• Putting Canada on a path to planting two billion trees;

• Protecting Canada's coasts and waterways by providing more than $3.5 billion to the Oceans Protection Plan;

• Helping Canadians purchase or lease close to 200,000 zero-emission vehicles since 2019 through purchase incentives of up to $5,000;

• Keeping people and communities safe from the impacts of climate change, with more than $1.6 billion to support Canada's National Adaptation Strategy;

• Lowering energy bills and making homes more energy efficient with grants of up to $5,000 for home retrofits and up to $40,000 for deep retrofits;

• Providing more than $600 million to preserve wild Pacific salmon;

• Supporting the recovery of the Southern Resident Killer Whale, the North Atlantic Right Whale, and the St. Lawrence Estuary Beluga; and,

• Banning the manufacturing of harmful single-use plastics, and working with provinces and territories towards a goal of zero plastic waste by 2030.

Progress on Biodiversity

Montreal recently hosted the Fifteenth Conference of the Parties (COP15) to the United Nations Convention on Biological Diversity, which led to a new Post-2020 Global Biodiversity Framework. During COP15, Canada announced new funding for biodiversity and conservation measures at home and abroad that will support the implementation of the Global Biodiversity Framework, including $800 million to support Indigenous-led conservation within Canada through the innovative Project Finance for Permanence model.

Canada is home to 20 per cent of the world's freshwater supply. Healthy lakes and rivers are essential to Canadians, communities, and businesses across the country. Recognizing the threat to freshwater caused by climate change and pollution, the federal government is moving forward to establish a new Canada Water Agency and make major investments in a strengthened Freshwater Action Plan.

• Budget 2023 proposes to provide $650 million over ten years, starting in 2023-24, to support monitoring, assessment, and restoration work in the Great Lakes, Lake Winnipeg, Lake of the Woods, St. Lawrence River, Fraser River, Saint John River, Mackenzie River, and Lake Simcoe. Budget 2023 also proposes to provide $22.6 million over three years, starting in 2023-24, to support better coordination of efforts to protect freshwater across Canada.

• Budget 2023 also proposes to provide $85.1 million over five years, starting in 2023-24, with $0.4 million in remaining amortization and $21 million ongoing thereafter to support the creation of the Canada Water Agency, which will be headquartered in Winnipeg. By the end of 2023, the government will introduce legislation that will fully establish the Canada Water Agency as a standalone entity.

Canada's oceans are home to more than 30 species of whales, which play a critical role in the health of our oceans and carry important cultural significance for many Indigenous and coastal communities. In Budget 2023, the federal government is proposing further funding to protect whales, including the North Atlantic Right Whale, the St. Lawrence Estuary Beluga, and British Columbia's Southern Resident Killer Whale, all of whom are vital to Canada's marine ecosystems.

• Budget 2023 proposes to provide $151.9 million over three years on a cash basis, starting in 2023-24, to Fisheries and Oceans Canada, Transport Canada, Environment and Climate Change Canada, and Parks Canada to continue to protect endangered whales and their habitats.

Canada's ports are at the heart of our supply chains, delivering goods to Canadians and allowing our businesses to reach global markets. As rising shipping levels enable and create economic growth and good jobs, the federal government is taking action to protect Canada's coastal ecosystems and communities.

• Budget 2023 proposes to provide $165.4 million over seven years, starting in 2023-24, to Transport Canada to establish a Green Shipping Corridor Program to reduce the impact of marine shipping on surrounding communities and ecosystems. The program will help spur the launch of the next generation of clean ships, invest in shore power technology, and prioritize low-emission and low-noise vessels at ports.

The federal government is continuing to work with provincial and territorial governments, in partnership with Indigenous communities and other stakeholders across Canada, to protect species at risk. As a result of actions taken to fulfill its obligations under the Species at Risk Act, Canada has helped to improve the status of several species.

• Budget 2023 proposes to provide $184 million over three years, starting in 2023-24, to Environment and Climate Change Canada, Parks Canada, Fisheries and Oceans Canada, and Natural Resources Canada to continue monitoring, protecting, and promoting the recovery of species at risk to help restore their populations.

Supporting Natural Disaster Resilience

As a result of climate change, extreme weather is on the rise. When extreme weather strikes, it often leaves behind a wake of severe damage to homes and communities. People need to be able to access affordable property insurance so that natural disasters don't lead to unnecessary financial disasters. However, the unique realities of natural disasters make them difficult to insure, leaving some Canadians financially vulnerable. Working with the insurance industry, more needs to be done to protect Canadians from the costs that come with recovering from disasters and make insurance affordable.

• Budget 2023 announces the federal government's intention to launch, in partnership with provinces and territories, a new approach to address gaps in natural disaster protection and help Canadians access affordable insurance.

• As a first step, Budget 2023 proposes to provide $31.7 million over three years, starting in 2023-24, to Public Safety Canada and the Canada Mortgage and Housing Corporation to work with the Department of Finance Canada to stand-up a low-cost flood insurance program, aimed at protecting households at high risk of flooding and without access to adequate insurance. This would include offering reinsurance through a federal Crown corporation and a separate insurance subsidy program.

The government will engage provinces and territories on the development and implementation of the program, as well as the requirements for its long-term fiscal sustainability, including cost-sharing and risk mitigation. In parallel, the Department of Finance and Public Safety Canada will engage with industry on solutions to earthquake insurance and other evolving climate-related insurance market challenges.

As climate change makes flooding more frequent and severe, many Canadians are unaware of the risks their home may face from flooding. This is, in many cases, due to a lack of publicly available information. For many at the greatest risk, this limits their ability to take action to protect themselves and their home, and hinders communities' ability to mitigate the effects of flooding.

• Budget 2023 proposes to provide $15.3 million over three years, starting in 2023-24, to Public Safety Canada to create a publicly accessible online portal where Canadians can access information on their exposure to flooding.

The Disaster Financial Assistance Arrangements cover up to 90 per cent of provincial and territorial response and recovery costs after a disaster. Since 1970, the federal government has provided approximately $7.6 billion in support under the program—two thirds of which has been delivered in the past ten years. As climate change makes natural disasters more frequent, the program must be modernized to increase its focus on prevention and resilience.

• Budget 2023 proposes to provide $48.1 million over five years, starting in 2023-24, and $3.1 million ongoing to Public Safety Canada to identify high-risk flood areas and implement a modernized Disaster Financial Assistance Arrangements program, which would incentivize mitigation efforts.

4.4 Stronger and More Inclusive Communities

No matter the colour of your skin, or who you love, or what language you speak, or where you were born, you deserve to share in the opportunities that Canada provides.

Investing in our communities means tackling the systemic discrimination and hate that too many racialized Canadians, Indigenous Peoples, persons with disabilities, women, and 2SLGBTQI+ Canadians still face. It means building communities where everyone is able to be who they are and do what they love.

Budget 2023 introduces new measures that will build stronger communities and a more equitable and inclusive Canada—for everyone.

Canada's two official languages unite us. English and French are at the heart of our history and who we are.

However, in a changing and interconnected world, our two official languages are not on equal footing. The relative size of Francophone minority communities has been declining, and Canada's rate of official language bilingualism is static. Even in Quebec, the demographic weight of Francophones is declining.

To meet the challenges facing linguistic duality in Canada—and to ensure its future—the federal government recognizes its responsibility to protect and promote our two official languages. This includes protecting and promoting French in Quebec, language rights of Francophone minorities across Canada, including Acadians, Franco-Ontarians, and Franco-Manitobans, as well as the Anglophone minority in Quebec.

Since 2015, the federal government has taken action to support our official languages with historic investments. This has included introducing an Action Plan for Official Languages; the development of a national strategy to increase Francophone immigration; the release of a white paper entitled English and French: Towards a substantive equality of official languages in Canada; the introduction of Bill C-13 to modernize the Official Languages Act for the first time in a generation; and achieving a record 4.4 per cent French-speaking immigrants outside of Quebec.

Investing in Our Official Languages

To strengthen the vitality of official languages across Canada, the federal government has also provided significant funding since 2015, including:

• $2.7 billion over five years, starting in 2018-19, to fund the Action Plan for Official Languages, 2018-23, which included funding for the training and recruiting of teachers to meet the growing needs of Francophone minority schools and immersion classes;

• $450 million over five years, starting in 2019-20, to support minority-language education, including at the post-secondary level; second-language learning; and minority-language community and educational spaces; and,

• $21.6 million over five years, starting in 2020-21, to support legislative amendments for increased access to family justice, including divorce, in the official language of one's choice.

The Action Plan for Official Languages, 2023-28 will implement the federal government's commitments to ensure the equality of English and French, help to increase the demographic weight of Francophones and restore the size of Francophone communities, increase the rate of bilingualism, and better support official language minority communities.

• Budget 2023 proposes to provide $373.7 million over five years, starting in 2023-24, in additional funding to support new and enhanced federal initiatives under the Action Plan for Official Languages, 2023-28. These investments will be guided by the four pillars of the Action Plan:

  • Francophone immigration: $123.2 million to boost Francophone immigration in Canada, including support for Canadian employers to recruit French-speaking foreign workers, and increased support for these immigrants once they arrive in Canada;
  • Official languages as a tool for economic development: $117 million to ensure the prosperity of official language minority communities, including increased support for the non-profit organizations that serve these communities, for the training of bilingual nurses and personal support care workers, and for the promotion of French-language research;
  • Official languages at the heart of Canadian identity:$111.4 million to bolster bilingualism in our justice system, including through the translation of judgments of national interest, and to support cultural and educational activities, including the training of early childhood educators in minority-language communities outside Quebec; and,
  • Government of Canada leadership: $22.1 million for a centre of expertise to ensure federal institutions fulfill their duty, under the Official Languages Act, to enhance the vitality of official language minority communities, and to support data and research on the number of children who have a right to be educated in the minority language.

• Budget 2023 proposes to provide $24.5 million over five years, starting in 2023-24, for the Department Canadian Heritage to double funding for the Court Challenges Program. This program is administered independently and provides support for legal cases of national significance that clarify and assert official language rights and human rights.

• Budget 2023 also proposes to provide $679.2 million over five years, starting in 2023-24, for the Department of Canadian Heritage to support equal access to services of equal quality in education by working with provinces and territories to make high-quality minority-language education, opportunities for second-language learning, and bilingual government services more readily available across Canada.

These new investments of more than $1 billion would bring total funding for the Action Plan for Official Languages, 2023-28 to over $3.8 billion over five years.

For workers across Canada, access to employment assistance services—such as employment counselling, resume writing, interview techniques, job search skills, and job placement services—in the official language of their choice is critical.

• Budget 2023 proposes to provide $208 million over five years, starting in 2023-24, and $54 million ongoing to Employment and Social Development Canada to expand the Enabling Fund for Official Language Minority Communities to support local official language minority community organizations to deliver employment assistance services.

The Canada Media Fund is a non-profit organization that supports artists, storytellers, and producers in bringing Canadian content to audiences at home and around the world. However, in recent years, changing viewing habits have resulted in declining revenues for the Canada Media Fund, making it harder for them to support homegrown talent.

• Budget 2023 proposes to provide $40 million over two years, starting in 2023-24, to the Department of Canadian Heritage for the Canada Media Fund to make funding more open to traditionally underrepresented voices, and to increase funding for French-language screen content. This approach ensures support for the production of Canadian content while the government continues to review and modernize its support for the Canadian screen sector

The COVID-19 pandemic had a significant impact on Canada's tourism sector. During the pandemic, the federal government provided $23 billion in emergency support to help the industry recover, and with travel resuming and the industry beginning to turn the corner, there is an opportunity to invest in Canada's tourism sector and ensure it can continue to be a driver of good jobs and vibrant communities across Canada.

Following consultations with the tourism industry, provincial and territorial counterparts, and Indigenous tourism operators, the government will present a new Federal Tourism Growth Strategy to chart a course for growth, investment, and stability in Canada's tourism sector. As key components of the upcoming Strategy:

• Budget 2023 proposes to provide $108 million over 3 years, on a cash basis, starting in 2023-24, to the Regional Development Agencies to support communities, small businesses, and non-profit organizations in developing local projects and events.

• Budget 2023 also proposes to provide $50 million over 3 years, on a cash basis, starting in 2023-24, to Destination Canada to attract major international conventions, conferences, and events to Canada.

Atlantic Growth Strategy

The Atlantic Growth Strategy was launched in 2016 to pave the way for a stronger economy in Atlantic Canada. Through the Atlantic Growth Strategy, the federal government and provincial governments in Atlantic Canada are working together to create good middle class jobs, strengthen local communities, encourage immigration, and grow innovative companies across the region.

In July 2022, the federal and provincial governments reaffirmed their commitment to work together and build on the initiatives that are benefitting Atlantic Canadians through the Atlantic Growth Strategy. Renewed areas of focus will include infrastructure, trade and investment, broadband, innovation, labour and skills, and clean technology.

Fighting Systemic Racism, Discrimination, and Hate

Canada's commitment to embracing diversity is an example to the world and a pillar of our national character—one in three people in Canada is a member of a racialized or religious minority community. We work together, support each other, and learn and prosper by living alongside each other.

However, many racialized and religious minority communities in Canada continue to experience barriers and discrimination. In response, the federal government has taken significant steps to fight systemic racism, discrimination, and hate in Canada. This includes:

• $85 million over four years to launch Canada's new Anti-Racism Strategy;

• $100 million over five years to launch the Federal 2SLGBTQI+ Action Plan;

• $200 million to establish the Black-led Philanthropic Endowment Fund, and create a sustainable source of funding to support Black communities;

• Up to $265 million over four years for the Black Entrepreneurship Program;

• $18 million over two years to support the Canadian Race Relations Foundation in delivering grants for community-level interventions to combat racism in Canada, including the rise of anti-Asian racism during the pandemic;

• $21.5 million to enhance legal supports for racialized communities; and,

• Implemented the "nothing without us" Accessible Canada Act to realize a barrier-free Canada for persons with disabilities by 2040.

Hate has no place in Canada. However, police-reported hate crimes have increased by 72 per cent between 2019 and 2021. Hateful rhetoric is on the rise, and misinformation and disinformation, both online and in our communities, is increasingly affecting the safety and well-being of Canadians.

To confront hate in all its forms, including hate faced by 2SLGBTQI+ communities, the federal government plans to introduce a new Action Plan to Combat Hate later this year. This new Action Plan will include measures to combat hateful rhetoric and acts, building on measures being taken in Budget 2023 to build safer, more inclusive communities.

• Budget 2023 proposes to provide $49.5 million over five years, starting in 2023-24, to Public Safety Canada to enhance and expand the Communities at Risk: Security Infrastructure Program and allow it to be more responsive to the evolving security needs of communities.

In Budget 2022, the federal government renewed Canada's Anti-Racism Strategy to fight racism and ensure that our society continues to be strengthened by Canada's remarkable cultural, ethnic, and linguistic diversity.

• Budget 2023 proposes to provide an additional $25.4 million over five years, starting in 2023-24, and $0.6 million ongoing, to the Department of Canadian Heritage to continue to support Canada's Anti-Racism Strategy and fight all forms of racism, including but not limited to anti-Indigenous racism, anti-Black racism, anti-Asian racism, antisemitism, Islamophobia.

• Budget 2023 proposes to provide $1.5 million over two years, starting in 2023-24, to the Privy Council Office to create a new Anti-Racism, Equity and Inclusion Secretariat to ensure that considerations of anti-racism, equity and inclusion are applied in the development of federal government policies.

Research indicates that Black Canadians continue to experience persistent inequities in income and employment while also facing a higher likelihood of discrimination. The government remains committed to addressing these barriers and inequities.

• Budget 2023 proposes to provide $25 million, in 2024-25, to Employment and Social Development Canada for the Supporting Black Canadian Communities Initiative, to continue empowering Black-led and Black-serving community organizations and the work they do to promote inclusiveness.

Supporting a More Equitable, Diverse, and Inclusive Public Service

Systemic racism has been a reality for Black Canadians for far too long. All too often, Black public servants face barriers to career advancement and lack adequate support for the challenges they face—particularly for their mental health. The federal government is committed to ensuring that Black public servants can work in a safe and healthy environment that is equitable, diverse, and inclusive.

• Budget 2023 proposes to provide $45.9 million over three years, starting in 2023-24, to the Treasury Board of Canada Secretariat to create a Mental Health Fund for Black public servants and establish dedicated career development programs, including to prepare Black public service leaders for executive positions.

Canadians need a federal public service that represents our diverse communities and draws from the full capacity of Canada's smart and capable workforce. To do this, federal workplaces must be welcoming and supportive, and free of harassment and discrimination.

• Budget 2023 proposes to provide $6.9 million over two years, starting in 2023-24, to the Treasury Board of Canada Secretariat to advance a restorative engagement program to empower employees who have suffered harassment and discrimination, and to drive cultural change in the public service. Of this amount, $1.7 million would be sourced from existing departmental resources. Funding will also support a review of the processes for addressing current and historical complaints of harassment, violence, and discrimination.

Public safety officers help keep us safe, but their jobs can frequently expose them to traumatic events and increase their risk of post-traumatic stress injuries. Over the past five years, the Canadian Institute for Public Safety Research and Treatment, based out of the University of Regina, has made important contributions to advance knowledge in this area and address injuries among officers.

• Budget 2023 proposes to provide $16.7 million over five years, starting in 2023-24, to Public Safety Canada to continue to support this important work through the Canadian Institute for Public Safety Research and Treatment.

The federal government fundamentally believes that a fair and equitable criminal justice system must guard against potential miscarriages of justice. Under the current system, it can be too difficult, and take too long, for people who believe they have been wrongfully convicted to have their cases reviewed.

On February 16, 2023, the Minister of Justice introduced legislation to establish an independent Miscarriage of Justice Review Commission to replace the current ministerial review process and make the process more efficient and accessible.

• Budget 2023 proposes to provide $83.9 million over five years, starting in 2023-24, and $18.7 million ongoing to Justice Canada for the independent Miscarriage of Justice Review Commission.

Women in Canada face unique barriers. Since 2015, the federal government has made record investments to support women and gender diverse people, with Budget 2023 delivering new support to build on the important progress that has been made.

• Budget 2023 proposes to provide $160 million over three years, starting in 2023-24, for the Women's Program to provide funding to organizations in Canada that serve women. The government is committed to maintaining historic funding levels for Canadian women's organizations and equity-deserving groups, with a particular focus on Indigenous women, women with disabilities, members of the 2SLGBTQI+ communities, and newcomer, Black, racialized, and migrant women.

From beginners to Olympians, every athlete in Canada should be safe from abuse, harassment, and mistreatment. Ensuring that our sporting institutions across the country are accountable for the treatment of their athletes is essential to building a sport system that promotes the safety and well-being of Canadian athletes.

• Budget 2023 proposes to provide $13.8 million over three years, starting in 2022-23, to the Department of Canadian Heritage to enhance accountability and support efforts to build a safe and accountable sport system.

Supporting people to be more active has significant benefits for their physical and mental health, as well as for our communities, the environment, and the economy. However, in 2018-19, less than half of adults, children, and youth met the minimum national physical activity guidelines. To help encourage more Canadians to get moving:

• Budget 2023 proposes to provide $10 million over two years, starting in 2023-24, towards ParticipACTION's Let's Get Moving Initiative, which will continue supporting national programming that aims to increase daily physical activity among Canadians. 

Northern, Indigenous, and remote communities face unique challenges when it comes to food security. Through the Local Food Infrastructure Fund, the federal government is supporting community-led efforts to address food insecurity by helping invest in the infrastructure needed to produce, store, and deliver locally-sourced food in a sustainable manner.

• Budget 2023 proposes to provide $10 million in 2023-24 to top up the Local Food Infrastructure Fund to strengthen food security in Northern, rural, and Indigenous communities across Canada.

Persons with disabilities can face additional costs related to medical care, retrofits, and medical devices. In fact, they are almost twice as likely to be low-income as people without a disability. Registered Disability Savings Plans (RDSPs) are there to support the long-term financial security of people with disabilities who are eligible for the Disability Tax Credit. Since their creation in 2008, total assets within RDSPs have grown to approximately $8.8 billion, with close to 260,000 RDSPs supporting persons with disabilities with the cost of living in their later years.

The federal government has expanded access to RDSPs by allowing a qualifying family member—such as a parent, a spouse, or a common-law partner—to open an RDSP and be the plan holder for an adult with mental disabilities whose ability to enter into an RDSP contract is in doubt, and who does not have a legal representative. The provision has helped many families access an RDSP, but it is currently set to expire.

• Budget 2023 announces the government's intention to extend the Qualifying Family Member provision until December 31, 2026. To further increase access to RDSPs, the government also intends to expand the provisionto include adult siblings of an RDSP beneficiary. These measures are expected to cost $13 million over five years, starting in 2023-24, and $3 million ongoing.

Since the introduction of the Qualifying Family Member provision in 2012, the federal government has maintained that this provision is intended as a stopgap for provinces and territories to develop more appropriate, long-term solutions to address RDSP legal representation issues for persons with disabilities. While most provinces and territories have made significant progress, others have not. The government continues to encourage provinces and territories that have not already done so to address issues surrounding guardianship for persons with disabilities.

In October 2022, the government launched the Disability Inclusion Action Plan, a comprehensive, whole-of-government approach to disability inclusion. Community engagement is a key aspect—the government needs to get views from Canadians with disabilities in matters that affect them. To further enhance disability inclusion in Canada:

• Budget 2023 proposes to provide $10 million over two years, beginning in 2023-24, to Employment and Social Development Canada to help address the unique needs and ongoing barriers faced by persons with disabilities by investing in capacity building and the community-level work of Canada's disability organizations.

• Budget 2023 proposes to provide $21.5 million in 2023-24 to Employment and Social Development Canada to continue work on the future delivery of the Canada Disability Benefit, including engagement with the disability community and provinces and territories on the regulatory process.

The government remains committed to the launch of a Canada Disability Benefit as part of the Disability Inclusion Action Plan, including engagement with the disability community and provinces and territories on the regulatory process. Investments in Budget 2023 continue to lay the necessary groundwork for the Canada Disability Benefit, building off of the government's reintroduction of the Canada Disability Benefit Act in June 2022.

Supporting Canadians With Disabilities

The federal government provides significant support to Canadians with disabilities. This includes:

• More than $1.6 billion per year to support persons with severe and prolonged mental and physical impairments through the Disability Tax Credit;

• Over $1 billion per year through Canada Disability Savings Grants and Bonds, as well as exempting from tax investment income earned in Registered Disability Savings Plans, which supports the financial security of persons with disabilities;

• Providing $922 million to provinces and territories through the Workforce Development Agreements in 2023-24, approximately 30 per cent of which is targeted to help persons with disabilities get training, develop their skills, and gain work experience;

• Over $650 million annually through more generous Canada Student Grants, interest-free Canada Student Loans, and easier-to-access repayment assistance—including loan forgiveness for those with severe permanent disabilities—to support persons with disabilities with the additional costs of post-secondary education, such as those that come with supportive services and devices;

• $105 million in 2023-24 to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund. This included funding to the Ready, Willing and Able Program to support persons with Autism Spectrum Disorder or intellectual disabilities in finding employment; and

• Over $460 million per year through the Child Disability Benefit provided as a supplement to the Canada Child Benefit for parents of children with severe and prolonged disabilities, providing an average of approximately $2,700 in annual support.

Along with the proposed Canada Disability Benefit Act, these measures form part of the government's Disability Inclusion Action Plan, which aims to improve the quality of life for persons with disabilities.

Through the Building Communities Through Arts and Heritage program, the federal government supports opportunities for local artists, artisans, and heritage performers through festivals, events, and projects. This includes Indigenous cultural celebrations and the celebration of 2SLGBTQI+ communities.

• Budget 2023 proposes to provide $14.0 million over two years, starting in 2024-25, for the Department of Canadian Heritage to support the Building Communities Through Arts and Heritage program.

Creating a New Leave for Pregnancy Loss

Pregnancy loss is a profoundly personal event in someone's life. Approximately 15 to 25 per cent of pregnancies end in miscarriage, and one per cent end in stillbirth. Without time to rest and recover, those who lose a child are at higher risk of developing physical and mental health challenges.

• Budget 2023 proposes to make amendments to the Canada Labour Code to create a new stand-alone leave for workers in federally regulated sectors who experience a pregnancy loss. This will support thousands of Canadians, including women and working parents, as they recover, both physically and emotionally, from a tragic moment in their life.

This new leave will also apply to parents planning to have a child through adoption or surrogacy.

Improving Access to Leave Related to the Death or Disappearance of a Child

The death or disappearance of a child is a tragic and devastating moment and can leave parents unable to work. Ensuring parents have the support they need to navigate a devastating period in their lives is critical to their emotional, mental, and physical well-being.

• Budget 2023 proposes to introduce amendments to the Canada Labour Code to improve eligibility for leave related to the death or disappearance of a child for workers in federally regulated sectors.

4.5 A Stronger Immigration System

Canada is a country that has been shaped by immigration. Our communities and our economy are made stronger every day by people who chose to move to Canada and start a new life.

By 2025, Canada will welcome 500,000 new permanent residents each year—the majority of whom will be skilled workers who will help address the labour shortages that so many Canadian businesses are experiencing today.

In the years to come, Canada's proud history of immigration must be matched with a modern, efficient immigration system that welcomes people from around the world, strengthens our communities, and supports Canada's continued economic growth.

As Canada welcomes record numbers of newcomers, a safe and efficient immigration system is essential. Applications for citizenship currently rely on name-based searches for screening, rather than biometric tools, such as fingerprints, that are used in visa and permanent residence applications. Name-based searches are slower and less accurate, and lead to increased processing times.

• Budget 2023 proposes to provide $10 million over five years, starting in 2023-24, with $14.6 million in remaining amortization for Immigration, Refugees and Citizenship Canada and the Royal Canadian Mounted Police to implement biometrics, which will help expedite the processing of citizenship applications.

This funding will build on important progress made in 2022, including the processing of 5.2 million applications for permanent residence, temporary residence, and citizenship. Additionally, further steps have already been taken to move key immigration services online, including the confirmation of permanent residence status and the introduction of online citizenship testing and ceremonies.

Visitors to Canada generate billions of dollars in revenue for the Canadian economy, strengthen our commercial and social ties with other countries, and support Canadian businesses. As air travel continues to recover from the pandemic, the federal government is committed to simplifying and expediting the application process for those seeking to visit Canada, while prioritizing national security. 

• Budget 2023 proposes to expand eligibility for the Electronic Travel Authorization Program to low-risk, trusted travellers from additional visa-required countries—a service which is currently available only in Brazil. This will help make Canada a more attractive destination for trusted travellers, while allowing the government to focus resources where it matters most, such as on screening higher-risk travellers. The cost of this measure is $50.8 million over four years in forgone revenue. Details on eligible countries will be announced in the coming weeks.

Access to legal representation, information, and advice ensures that Canada's asylum process is fair for everyone, and makes the process more efficient. For asylum seekers who are unable to pay for legal support, the federal government helps fund legal aid services in partnership with provinces and territories.

• Budget 2023 proposes to provide $43.5 million in 2023-24 to Justice Canada to maintain federal support for immigration and refugee legal aid services.

Supporting Vibrant Rural Communities

Canada's rural communities are a driver of economic growth, and home to a wide range of industries including agriculture, mining, and tourism. In Budget 2023, the government is proposing a series of measures that will help to support Canadians living and working in rural and remote communities, including:

• $45.9 million to expand the reach of the Canada Student Loan Forgiveness program for eligible doctors and nurses who choose to practice in rural and remote communities;
• $368.4 million to renew and update forest sector programs, which will support jobs in the forestry sector in rural and remote communities;
• Significant investment tax credits and funding for clean electricity to build Canada's clean economy, which will support major projects that will create good jobs in rural and remote communities, and will help expand Canada's electrical grid to more rural and remote communities;
• $4 billion to implement a co-developed Urban, Rural and Northern Indigenous Housing Strategy;
• $250 million for an Oral Health Access Fund, which will complement the Canadian Dental Care Plan by reducing barriers to accessing care, including in rural and remote communities;
• $333 million over ten years to establish the Dairy Innovation and Investment Fund, which will help reduce the amount of solids non-fat that is sold for animal feed or disposed of, and ultimately increase revenues for dairy farmers;
• $108 million over 3 years to the Regional Development Agencies for projects and local events to increase local tourism opportunities for businesses and communities;
• $57.5 million over five years, with $5.6 million ongoing, to the CFIA to establish a Foot-and-Mouth disease Vaccine Bank to ensure early vaccination of livestock, reduce border closures and protect the livelihoods of livestock farmers in the event of an outbreak;
• $34.1 million over three years for a top-up to the On-Farm Climate Action Fund to support Eastern Canadian farmers adopt nitrogen management practices that reduce fertilizer use and ultimately result in cost savings for these farmers;
• $13 million in 2023-24 to increase the interest-free limit of loans under the Advance Payments Program to provide additional cash flow to farmers in need; and,
• $10 million in 2023-24 to top up the Local Food Infrastructure Fund to strengthen food security in rural and Indigenous communities across Canada.