Human rights tribunal approves $23B revised First Nations child-welfare compensation deal

The Canadian Human Rights Tribunal approved a $23.4-billion revised agreement to compensate victims of the underfunded First Nations child-welfare system on Wednesday.

The CHRT's approval brings a 16-year legal battle and a long-standing human rights complaint closer to a resolution.

The new deal adds $3.4 billion to the $20 billion previously offered by the federal government. In total, it covers approximately 300,000 First Nations children, youth and families on-reserve or in the Yukon who were discriminated against from 1991 on.

The deal also includes a request for Prime Minister Justin Trudeau to issue a formal apology for the harm caused by the broken system that separated so many First Nations children from their families and cultures.

The Assembly of First Nations (AFN) chiefs-in-assembly unanimously endorsed the new deal this spring.

Tribunal rejected original deal

In 2016, the CHRT found that the Canadian government racially discriminated against First Nations youth by chronically underfunding on-reserve child and family services and refusing to pay for essential health care. In 2019, the tribunal ordered Canada to pay $40,000, the maximum amount allowable, to individual victims and their families.

The federal government, the AFN and the plaintiffs in two class-action cases reached a settlement for $20 billion last year.

But the deal nearly fell apart in October when the CHRT rejected the $20 billion offer from the government, stating that it failed to ensure that every victim would receive the $40,000 to which they were entitled.

The tribunal also said the original deal excluded First Nations children removed from their homes and placed in non-federally funded placements and the estates of deceased caregiving parents and grandparents.

In a written decision issued Wednesday, the tribunal said the revised deal addressed its concerns.

Cindy Blackstock, executive director of First Nations Child and Family Caring Society of Canada, said in a media statement that the CHRT's approval "recognizes the egregious harms flowing from Canada's willful and reckless discrimination against First Nations children, youth and families."

The compensation agreement must now be submitted to Federal Court for final approval before funds start flowing to victims.