Ottawa signs $20B settlement for First Nations children harmed by child welfare

The federal government says it has signed a $20-billion final settlement agreement to compensate First Nations children and families harmed by chronic underfunding of child welfare.

The Assembly of First Nations and plaintiffs in two class-action lawsuits agreed to the deal, which also accounts for the government’s narrow definition of Jordan’s Principle.

Indigenous Services Canada says the settlement is the largest in Canadian history.

The $20 billion accounts for half of an overall $40-billion deal that aims to reform the child-welfare system, including five-year funding for the First Nations Child and Family Services program.

The deal must still be approved by the Canadian Human Rights Tribunal and Federal Court.

The court had dismissed Canada’s application to review two human-rights tribunal orders around child welfare and Jordan’s Principle, which is meant to eliminate jurisdictional squabbles in paying for services for First Nations kids.

AFN Manitoba Regional Chief Cindy Woodhouse says in a statement she is proud of this “historic milestone” for First Nations children and their families.