Today marks 20 years since the First Nations Fiscal Management Act (2005) (the Act or FMA) came into force (2006) enabling the First Nation-led institutions under the Act to support First Nations in Canada with a similar fiscal framework and access to financing and investment opportunities as other forms of government. This enabled the development of real property taxation systems, increased financial capacity, access to affordable capital and investment services, and improved infrastructure project outcomes.

The Act established the First Nations Tax Commission, the First Nations Financial Management Board, First Nations Finance Authority, and the First Nations Infrastructure Institute as a part of a comprehensive fiscal framework. Recognized as one of the most fundamental and successful pieces of legislation for First Nations in history, and receiving all-party support, the Act is part of Canada’s commitment to level the playing field between First Nations and the rest of Canada with equitable participation in economic reconciliation opportunities.

First Nations can choose to become scheduled to the Act enabling access to support and services of all the institutions. To date almost 70 per cent of First Nations in Canada, have become scheduled demonstrating a growing commitment to economic growth and self-determination.

Quotes:

“For 20 years, the First Nations Fiscal Management Act has provided communities with the tools they need to grow their economies on their own terms. The First Nations-led institutions created by the Act are helping communities build infrastructure, attract investment, and create new opportunities for their people. Our government is proud to mark this anniversary and will continue to support this work and the Indigenous Partners leading it in the years ahead.” ~ The Honourable Rebecca Alty, Minister of Crown-Indigenous Relations, Government of Canada

“At the time of Royal Assent, I called the passage of the FMA a triumph for First Nations and Canada that would usher in a new era of economic development, job growth and improved infrastructure. Over the past twenty years, First Nations have collected more than $1 billion in local revenues to support community development and build more sustainable economies across Canada. While there is much to celebrate from our past, I am enthusiastic and optimistic about our future. We have been joined by a new generation of First Nation leadership who share our vision of true and full self-determination. With the North Star as our guide, we will walk and work together to clear the path for fiscal jurisdiction, strengthen community development, improve infrastructure and help First Nations advance self-determination as they build strong economies.” ~ C.T. Manny Jules, Chief Commissioner, First Nations Tax Commission

“This milestone celebrates the choice of First Nations leadership to deliver real results for their communities, with 67% of eligible First Nations now scheduled to the FMA. Good financial management equips First Nations to achieve their goals for the future, and the FMB will continue to adapt and create new tools as needed to meet the challenges ahead.” ~ Harold Calla, Executive Chair, First Nations Financial Management Board

“To date, FNFA has raised more than $4.2 billion for First Nations contributing to the creation of an estimated 40,000 jobs and almost $9 billion to Canada’s economy. Further amendments to the Act, such as enabling FNFA to lend to Special Purpose Vehicles, will only increase Indigenous economic participation and further drive growth and prosperity for generations to come.” ~ Ernie Daniels, President and CEO of First Nations Finance Authority

“On the 20th anniversary of the First Nations Fiscal Management Act, we celebrate the many First Nations that have worked with the FMA institutions to strengthen their economies and advance their right to self‑determination. Building on this success, FNII looks forward to working alongside these institutions and participating First Nations to extend that progress into infrastructure, which is at the heart of every First Nation community—supporting communities as they plan, build, and manage projects that reflect their own priorities for generations to come.” – Allan Claxton, First Nations Infrastructure Institute Development Board Chair

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About FNTC

The FNTC undertakes a comprehensive range of functions and services designed to meet the evolving interests, needs and circumstances of First Nations and their taxpayers. The aim of these functions and services is to ensure the integrity of the system of First Nation real property taxation, and to promote a common approach to First Nation real property taxation nationwide, having regard to variations in provincial real property taxation systems.

About FMB

The First Nations Financial Management Board is a First Nations-led non-profit organization that supports First Nations in developing sound financial and administrative governance practices. The FMB was created under the First Nations Fiscal Management Act (FMA) in 2006. Services offered are at no cost to First Nations.

About FNFA

FNFA is a First Nations-led non-profit, financial services corporation mandated under the First Nations Fiscal Management Act (2005) providing cost-effective financing, investment management, and capital advisory services to First Nations governments in Canada. FNFA does not rely on federal government funding and is self-sufficient.

About FNII

FNII is a centre of excellence that helps First Nations and Indigenous organizations plan, design, and deliver infrastructure projects that reflect their priorities and support long-term community wellbeing. It offers flexible, optional supports—from advisory services to workshops and tools—that help Nations lead their own innovative infrastructure solutions and close the infrastructure gap on their own terms.

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Westbank First Nation, British Columbia – First Nations Finance Authority (FNFA) has issued its 15^th debenture, raising $485 million for First Nation governments in Canada to finance projects including new housing construction, construction of an LNG facility, investment in health services, and building critical infrastructure. With significant excess demand, the issuance was sold to 40 investors globally. FNFA secured a rate of 3.99 per cent for members, 0.46 per cent lower than bank prime rate of 4.45 per cent, keeping borrowing costs affordable results in more funds available for other community priorities.

“The interest in Indigenous bonds continues to grow, the investor community sees what FNFA is doing – the projects we are financing, and how an investment in FNFA debentures benefits First Nation communities across the country,” said Chief Derek Epp, Ch’íyáqtel First Nation, British Columbia, and FNFA Board Chair. “FNFA’s latest issuances are tagged by Bloomberg as “Sustainable” which represents many investors’ criteria. As we see more demand for financing for Indigenous-led projects and continued demand for our debentures from investors, we can secure the best rates for our members.”

FNFA operates a pooled-borrowing model to provide First Nation governments with access to affordable capital with favorable terms. Loans are fully supported by the members’ own source revenues. FNFA is a one-of-its-kind model showing the power and success of First Nations when they come together.

“Our success in raising capital is delivering real results: stronger communities and a stronger Canada,” said Ernie Daniels, President and CEO, FNFA. “With new legislative amendments set to permit FNFA lending to Indigenous‑owned Special Purpose Vehicles, our low‑cost financing will further advance Indigenous participation and leadership across the economy.”

FNFA’s loan portfolio now exceeds $4.3 billion in financing for its members, has created an estimated 41,000 job opportunities and contributed approximately $9.0 billion to Canada’s economic output.

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About FNFA

FNFA is a First Nations-led non-profit, financial services corporation mandated under the First Nations Fiscal Management Act (2005) providing cost-effective financing, investment management, and capital advisory services to First Nations governments in Canada. FNFA does not rely on federal government funding and is self-sufficient.

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Westbank First Nation, British Columbia – First Nations Finance Authority (FNFA) has successfully raised over $4 billion in financing for Nation-building projects in Canada contributing to the creation of an estimated 39,006 jobs and $8.47 billion to Canada’s economy.

“We are the only First Nation-led organization in the world leveraging private capital for a pooled-borrowing model, and this proves it’s working.” said Ernie Daniels, President and CEO, FNFA. “In 2014 we issued our first bond for $90 million, and without the leadership of our dedicated board of directors and team over the years, we would not have reached $4 billion in financing.”

FNFA raises capital through its successful bond issuances and a commercial paper program of $900 million to finance community priorities. FNFA’s innovative model strives to provide affordable interest rates and better financing terms, making them a national lender of choice for Nations in Canada who choose to work with them.

“First Nations have already demonstrated their ability to drive economic growth, create thousands of jobs and strengthen industries from clean energy to seafood,” said Chief Derek Epp, Ch’íyáqtel First Nation, BC and FNFA Board Chair. “This milestone represents our growing membership and the vision of leaders who are building economic wealth and improving quality of life in their communities.”

Over half of the 634 First Nations in Canada are voluntarily scheduled to the First Nations Fiscal Management Act (2005) allowing those members access to affordable financing and investment services through FNFA.

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About FNFA

FNFA is a First Nations-led non-profit, financial services corporation mandated under the First Nations Fiscal Management Act (2005) providing cost-effective financing, investment management, and capital advisory services to First Nations communities in Canada. FNFA does not rely on federal government funding and is self-sufficient.

Media Contact:

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Westbank First Nation, British Columbia – First Nations Finance Authority (FNFA) welcomes measures in Budget 2025 with the intent to amend the First Nations Fiscal Management Act (2005) to enable FNFA to lend to Indigenous-owned special purpose vehicles. This will expand access to affordable capital for Indigenous participation in economic and resource development projects.

“Every Nation, large or small, will now have access to affordable financing to accelerate building to close the infrastructure gap, enhance their communities, and increase quality of life,” said Ernie Daniels, President and CEO, FNFA. “It sends a strong signal that Indigenous Nations are significant drivers of the Canadian economy, and FNFA is ready to implement.”

Furthermore, the government’s intention to explore a bonding and surety backstop pilot project for First Nations contractors on reserve—enabling them to competitively bid on infrastructure projects—alongside a standalone pilot to monetize federal transfers to support on-reserve infrastructure financing, reflects a clear recognition of the systemic inequalities that exist. More importantly, it signals a commitment to addressing these disparities through meaningful policy reform and by empowering First Nations-led institutions.

“This model is an innovative way to address housing and infrastructure needs and support First Nations in the prioritization of their own projects while creating jobs in the Canadian economy.” said Chief Derek Epp, Ch’íyáqtel First Nation, BC and FNFA Board Chair. “Monetization will work to close the widening $349.2 billion infrastructure gap quicker and build more for less, today.”

For over a decade, FNFA’s pooled, investment-grade borrowing model under the First Nations Fiscal Management Act (2005) has provided more than $4 billion in financing to member Nations, generating approximately 39,000 jobs and $8.5 billion to Canada’s economy.

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About FNFA

FNFA is a First Nations-led non-profit, financial services corporation mandated under the First Nations Fiscal Management Act (2005) providing cost-effective financing, investment management, and capital advisory services to First Nations communities in Canada. FNFA does not rely on federal government funding and is self-sufficient.

Media Contact:

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Westbank First Nation, British Columbia – First Nations Finance Authority (FNFA) has issued its first 5-year bond which enables a 3.08 per cent rate for FNFA Borrowing Members. This marks FNFA’s 14^th debenture, including the attraction of new institutional investors, raising an additional $435 million for First Nation governments in Canada to build projects that increase quality of life.

“Providing growing access to low-cost capital for First Nation governments is essential to help close the estimated $349 billion infrastructure gap between First Nations and the rest of Canada,” said Chief Derek Epp, Ch’íyáqtel First Nation, BC, and FNFA Board Chair. “This issuance supports more communities getting shovels in the ground and building their priorities faster than ever before.”

Scaling its innovative and tailored model, FNFA operates under the successful First Nations Fiscal Management Act and lends directly to First Nation governments who choose to access these tools. To date, FNFA financing has created an estimated economic impact of over $8 billion to Canada’s economy through critical infrastructure and economic development projects.

“This is about access to affordable financing for our members and supporting their journey to self-determination,” said Ernie Daniels, President and CEO of FNFA. “We are supporting First Nations to create generational wealth and opportunity that flows right back to our people and many other Canadians.”

FNFA’s debentures continue to be a sought-after investment for investors globally. Due to prudent risk management, revenue-intercept mechanisms, and AA credit ratings, FNFA bonds have consistently been oversubscribed. Underscored by the types of projects financed, such as water treatment plants, schools, housing, green energy, and economic development projects, FNFA bonds demonstrate First Nations ability to build critical infrastructure and major projects while contributing to the GDP of Canada.

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About FNFA

FNFA is a First Nations-led non-profit, financial services corporation mandated under the First Nations Fiscal Management Act, 2005, providing cost-effective financing, investment management, and capital advisory services to First Nations communities in Canada. FNFA does not rely on federal government funding and is self-sufficient.

Media Contact:

Jennifer David, FNFA

Director of Communications and Marketing

Email: jdavid@fnfa.ca

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As originally published in the Hill Times on Monday October 20, 2025

It’s time to correct a common misconception: granting First Nations Finance Authority (FNFA) the ability to finance Special Purpose Vehicles (SPVs) is not about giving First Nations a competitive edge—it’s about leveling the playing field.

Under the current framework, municipalities and other public entities routinely use SPVs to finance infrastructure and economic development. First Nations, however, are constrained by outdated provisions of the Indian Act, which limit their ability to participate in these same opportunities. FNFA’s capacity to finance SPVs simply allows First Nations to access the same tools others already use. This is not preferential treatment, it’s parity.

More broadly, this issue underscores the critical role of the First Nations Fiscal Management Act (FNFMA) institutions. These institutions—FNFA, the First Nations Tax Commission, the First Nations Infrastructure Institute, and the First Nations Financial Management Board—are not only pillars of Indigenous fiscal empowerment, but also models of good governance, accountability, and economic development. Their success benefits all Canadians by fostering stronger, self-sustaining communities and reducing reliance on federal transfers.

Ironically, these institutions exist precisely because of the limitations imposed by the Indian Act. They were created to fill the gaps, to offer First Nations the tools to build their own futures. Supporting their evolution—including enabling FNFA to finance SPVs—is not just a policy decision, it’s a commitment to reconciliation, equity, and shared prosperity.

Let’s move past the notion of advantage and focus on fairness. Empowering First Nations through the FNFMA is a win for everyone.

Canada’s economy and resource potential stands at a crossroads: Indigenous communities are prepared to be part of nation building and contribute towards economic progress, but governments continue to struggle to meaningfully (and legally) consult and engage Indigenous rights holders on decisions that impact their territories.

Since time immemorial, Indigenous Peoples shared the land, our traditional knowledge, and developed robust trade networks that made survival possible for new settlers.

Today, our people remain burdened and oppressed by the Indian Act legislation, paternalistic Ottawa, and various legislative impediments to otherwise wanted and much needed economic progress. Indigenous Peoples do not simply want to be “consulted”, we want to contribute to the development of projects to build Canada, and at the same time, contribute to increased productivity and real GDP growth.

FNFA created by federal legislation, the FNFMA, 2005, allows the participation of member Nations in economic projects. Over the past 20 years, FNFA has delivered more than $4 billion in financing, raised through capital markets, for First Nations projects—supporting the creation of an estimated $8.35 billion in national economic output, created an estimated 38,500 jobs, and helped to build critical infrastructure like housing, schools, and water systems. From the Haisla Nation’s $1.4 billion majority stake in Cedar LNG, to the Mi’kmaq Coalition’s $700 million investment in Clearwater Seafoods, First Nations are actively leading and partnering in Canada’s energy and resource economy on a global stage.

Yet despite our success, our legislative act still prohibits us from providing financing to Nations who wish to come together to support major projects through SPVs—legal partnerships which First Nations can use to pool resources for major projects—even when federal or provincial guarantees are in place.

Private companies, Crown Corporations and banks face no such restrictions, leaving Canada’s First Nations, who are members of FNFA, shut out of opportunities to access affordable capital at preferred rates from an Indigenous-led financial organization. The very reason we were created.

According to Chief Derek Epp Ch’íyáqtel (formerly Tzeachten First Nation), “The Stonlasec8 deal is a prime example of an Indigenous-owned SPV, comprising 38 First Nations in British Columbia who are investing $736 million for a 12.5 per cent equity stake in the project. If FNFA was the lender of choice in that deal, we could have obtained more affordable financing, and those funds could have been reinvested into our communities.”

If Prime Minister Carney and Finance Minister Champagne truly want to get our economy moving, they need to ensure First Nations are part of more projects. Concrete and immediate actions are necessary to empower First Nations to invest in and become full partners in projects.

First Nations across Canada already realize the strategic benefits of entering into SPVs when exploring innovative solutions to economic opportunities. Not only can they secure lower rates of financing for projects, but they can also de-risk their investments by working together.

Earlier this month, at a conference on the traditional territory of the Mississaugas of Scugog Island First Nation, Chief Kelly LaRocca shared, “SPVs are de-risked, tariff-proof funding – spreading out the risks and minimizing delays of a project.” 

What is standing in the way of FNFA lending to SPVs is an outdated legislative barrier that should be amended as part of Minister Champagne’s November 4^th Budget. This will be a genuine test and opportunity for the Prime Minister to demonstrate his government’s commitment to the participation of Indigenous Peoples in economic projects.

Across all federal political parties, there is support that amending the legislation would enable FNFA to finance Indigenous-owned SPVs, and that this amended legislation would be a practical, non-partisan step towards economic Reconciliation.

If private lenders can finance SPVs, often at a higher rate than FNFA, why should FNFA be prohibited from doing the same?

Making such a move costs nothing and in fact saves the government money in the short and long term and carries no risk to FNFA’s borrowing pool. It levels the playing field within the broader Canadian economy. It opens the door for multi-Nation ownership in major projects, creating lasting economic benefits for First Nations communities across Canada.

Prime Minister Mark Carney has doubled the Indigenous Loan Guarantee Program, and these tools compliment his priorities and his understanding of what is at stake. Without SPVs, these commitments remain half-measures. With SPVs, they become real and financially impactful.

The Prime Minister should ensure that the Budget Implementation Act, which accompanies the federal budget, amends the FNFMA to allow FNFA to finance SPVs, thereby unlocking billions in investment, creating thousands of jobs, and ensuring profits flow into housing, water, and health services.

This proposal to unleash Indigenous capital and investments is a high-impact, low-cost plan, rooted in true partnerships between the Canadian Government and Indigenous Rights and Title Holders. This is an Indigenous-led solution resulting in meaningful Reconciliation, for the benefit of all Canadians, and the time is now.

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Over $3.4B in First Nations-led Projects Financed by FNFA

For Immediate Release: June 26, 2025

Westbank First Nation, British Columbia – First Nations Finance Authority (FNFA) has issued its first 30-year bond for $350 million contributing to financing Haisla First Nation (British Columbia) and their majority equity ownership in Cedar LNG; a floating LNG facility being built within Haisla’s traditional territory. This issuance also marks the addition of Cedar Leaf Capital to the syndicate selling FNFA’s issuances to investors.

“With a collective goal of promoting more Indigenous participation in the capital markets, it made sense to partner with Canada’s first majority Indigenous-owned investment dealer,” said FNFA President and CEO, Ernie Daniels. “We welcome the opportunity to work with Cedar Leaf Capital as a member of our bond syndicate.”

Once complete, Haisla’s Cedar LNG will be one of the lowest carbon LNG facilities in the world which is intended to run on hydro-electric power. With more investors across the world insisting that portions of their portfolios are held in securities that support sustainability, social and impact investment goals, FNFA bonds are a clear choice.

“We are honoured to be part of the syndicate for this historic bond issuance by First Nations Finance Authority,” said Clint Davis, CEO of Cedar Leaf Capital.

FNFA’s loan portfolio now exceeds $3.4 billion in financing for its members, has created an estimated 34,000 job opportunities and contributed $7.4 billion to Canada’s economy. Over half of the 634 First Nations in Canada are scheduled to the Act FNFA operates under giving them access to pursue financing and services.

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About FNFA

FNFA is a non-profit organization that provides financing and access to long-term loans with preferable interest rates, investment and advisory services to First Nation governments that voluntarily schedule to the First Nations Fiscal Management Act. FNFA does not rely on federal government funding and is self-sufficient.

About Cedar Leaf Capital

Cedar Leaf Capital Inc. is Canada’s first majority Indigenous-owned investment dealer, with a commitment to Indigenous economic reconciliation. The firm provides services as an underwriter or placement agent of new debt issues for corporate and government clients in Canada, with plans to potentially expand into advisory services and equity capital markets. Cedar Leaf Capital operates as a registered Investment Dealer across all provinces and territories in Canada. The company is regulated by the Canadian Investment Regulatory Organization (CIRO).

Media Contact:

Jennifer David, FNFA

Director of Communications and Marketing

Email: jdavid@fnfa.ca

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Sen. Prosper was joined by National Chief Cindy Woodhouse Nepinak, Chief Leroy Denny, Chief Gerry Toney and members of various First Nations organizations to discuss their shared vision for progress on a “Canada Strong” strategy that is inclusive and continues to move Reconciliation with First Nations people forward.  This approach is consistent with the approach taken by the Senator in his Reconcili-ACTION report.

Senator Prosper lists 7 key priority points that include clear actions that can reasonably be taken in the first 100 days after Parliament resumes.  It outlines legislative and policy measures that can be undertaken to support areas the Prime Minister has identified as the new government’s priorities such as bolstering Canada’s economy and building much-needed housing.

These priorities were released ahead of the upcoming cabinet shuffle with the hope of influencing ministerial mandate letters and the upcoming budget.

The Senator is grateful to the National Chief, Nova Scotia Chiefs, and all organizations that helped to bring this priority list together.  It is a show of unity amongst First Nations peoples, eager to see progress on key issues and to contribute to a stronger, more prosperous and more self-sufficient Canada.

Quote

“It’s important to me that I use my platform to support First Nations priorities.  I firmly believe that everything I’ve outlined in the list of priorities for the first 100 days of Parliament is achievable.  I’m hopeful that this document will be considered as the Government develops its mandates and the next budget.”

– Senator PJ Prosper (Nova Scotia/Mi’kma’ki)

“If FNFA could lend to SPVs with the support of a federal loan guarantee, First Nations of any size could seize access to affordable financing to participate in equity-based opportunities. We applaud the expanded mandate of Canada’s that has a focus on economic reconciliation, including an increase in the authority of the Canada Indigenous Loan Guarantee Corporation to support up to $10 billion in loans. FNFA calls on the federal government to support this next logical step, to amend the FMA to allow lending to SPVs.”

– Ernie Daniels, President & CEO, FNFA

“The recent dissolution of Parliament led to the lapse of Bill C-61, the First Nations Clean Water Act the introduction of which was required under the Settlement Agreement Canada signed with First Nations to resolve the ongoing crisis of unsafe water in their communities. It is critical that steps be taken urgently to reinstate Bill C-61 or to introduce equivalent legislation to ensure all First Nations have fully funded access to clean, safe water that meets specified quality and quantity standards.  Such legislation will protect the First Nations’ fundamental human right to clean water and empower them with the legal framework necessary to manage their water systems.”

– Kerry Black, FNAC

associated links

• Learn more about the Senator’s report, Reconcili-ACTION
• Read the AFN’s “Prosperity for All” 2025 Election Priorities Report
• Learn more about Special Purpose Vehicles here
• Learn more about One Bowl
• Information on the water legislation that died on the Order Paper can be found here
• DFO’s 2019 Reconciliation Strategy can be found here
• Learn more about Ta’n Etli-tpi’tmk

For media inquiries:

Claudine Santos, Director of Parliamentary Affairs

Claudine.Santos@sen.parl.gc.ca/(m) 613.601.1184

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Canada is doubling down on Indigenous-led projects, increasing funding for a federal program that helps finance infrastructure projects like roads, water systems, and stakes in major resource projects.

The federal government is boosting its support for the Canada Indigenous Loan Guarantee Corporation to $10 billion. The expansion means First Nations can now get increased funding for infrastructure, transportation and trade initiatives, in addition to energy and natural resource projects. 

The loan guarantee program is expected to help improve basic municipal services in First Nations communities, such as clean water, sewage treatment, roads, health facilities, and public schools — services other municipalities have had for decades.

“First Nations have really gone without for so long that there’s going to be a massive need for a lot of investment in infrastructure and communities,” said Derek Epp, Chief of Tzeachten First Nation in British Columbia.

Historically, First Nations have faced significant barriers to securing financing for economic development, due to colonial policies like the Indian Act. 

The Indigenous Loan Guarantee Program was launched by the Canadian government in December 2024. The program initially had $5 billion in loan guarantees to support Indigenous ownership in natural resource and energy projects to address historic barriers to accessing capital. Now, the funding has been doubled to $10 billion. 

The government program serves as a safety net for Indigenous groups, allowing them to borrow money for large-scale projects. If they cannot repay the loans, the government promises to cover the debt. 

The First Nations Finance Authority uses its own funding sources to also provide loans, but with this program’s increased guarantee, it can lend more confidently, knowing the government will back any unpaid loans. Ultimately that means more funding for more projects in First Nations communities.

“A lot of these larger resource projects are going to be in our traditional territories. … Being in a partnership with us is the way to go, because it creates greater certainty for projects to be completed,” said Ernie Daniels, president and CEO of the First Nations Finance Authority.

The model opens up opportunities for equity ownership in projects like the Trans Mountain pipeline, natural gas expansion in BC and Alberta, mining in the Prairies and hydroelectric projects in Quebec.

“The idea of First Nations owning a stake in projects like Trans Mountain has been discussed for years and with the expanded funding, this could become a reality,” Epp said.

There are about 130 Indigenous communities located near areas along the route of the Trans Mountain pipeline, primarily in British Columbia and Alberta that are expected to be impacted. “If the federal government decides to transfer the project to First Nations, there would be an opportunity for all communities who are impacted to be involved,” he added. 

Epp says most First Nations across the country don’t have the capital to participate in these equity ownership stakes. The new model allows small First Nations to buy a stake in a company like a typical investor. Or multiple First Nations could pool their money to invest in large projects together. 

“This is key to economic reconciliation — it supports First Nations leadership and ensures the benefits stay within our hands.” Epp said. 

But Daniels is cautious about whether the new project financing will solve the gap in funding needed for infrastructure like roads, housing and water systems — estimated to be $350 billion and growing due to inflation.  

Most First Nations are still dependent on the government for annual infrastructure funding, which is often not enough. 

“We still need a revenue stream to pay off that debt,” he said. “What we really need is more predictable revenue-sharing between the federal government and First Nations communities. Take taxes on tobacco, for example. If those revenues were shared directly with them, that could help,” Daniels said.

“One of the ways that we’re going to become economically self-sufficient is we need infrastructure. Infrastructure is a precursor to successful economic development.” 

Research by the First Nations Major Projects Coalition, a group of over 170 First Nations across Canada, estimates $630 billion will be invested in energy, mining, forestry, infrastructure and trade over the next decade. Of that, more than $50 billion could be needed in loan guarantees for Indigenous communities to take part in those projects.

Despite the challenges, First Nations experts are optimistic about further government investment as success builds momentum. “If this works out really well, I could see them putting more money into that,” Daniels said. 

Daniel says programs like this allow First Nations to reduce dependence on federal transfers and create long-term socioeconomic benefits by creating jobs, building infrastructure and reinvesting project revenue into community development, so future generations can prosper. 

“We are an emerging economy within an established one,” he said. “Once we get that economic self-sufficiency going, the economic benefits will be felt across Canada as a whole.”

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Westbank First Nation, British Columbia – First Nations Finance Authority (FNFA) applauds the Government of Canada’s recent move to increase the funding authority for the Canada Indigenous Loan Guarantee Corporation from $5 billion to $10 billion. This decision to expand the Indigenous Loan Guarantee Program (ILGP) to cover not just natural resources but also infrastructure, transportation, and trade is a decision that is not only good for First Nations, but good for Canada, of particular importance in a time of shifting economic opportunities. This represents a major milestone, and FNFA is prepared to work with First Nations to transform this opportunity into prosperity.

For over 11 years, FNFA has been a globally unique, self-sufficient model under the First Nations Fiscal Management Act (FNFMA), providing over $3 billion in financing to First Nation governments for infrastructure and economic development contributing over $7 billion to Canada’s economy. But more must be done to close the $350 billion infrastructure gap.

“Economic reconciliation involves more than just funding; it encompasses access,” said Chief Derek Epp, Ch’íyáqtel First Nation, BC and FNFA Board Chair. “With FNFA loans, Nations become equity partners in their own futures. We offer lower interest rates and higher returns—keeping more value in our communities.”

Currently, FNFA can only lend to scheduled First Nation governments backed by their own source revenue. FNFA is working with Canada to amend the FNFMA to allow lending to Special Purpose Vehicles (SPVs), a proven model when multiple Nations choose to work together safely and strategically without risking their core community budgets.

“If FNFA could lend to SPVs with the support of a federal loan guarantee, Nations of any size could seize access to affordable financing and set to work in building major projects faster than ever before,” said FNFA President and CEO Ernie Daniels. “We applaud this expanded mandate and call on all federal leaders—whether it’s Mark Carney or Pierre Poilievre—to support this next logical step: amend the Act to allow lending to SPVs.”

FNFA remains ready to work with its Treaty Partner to ensure First Nation-led growth fuels prosperity for all Canadians.

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FNFA is a non-profit organization that provides financing and access to long-term loans with preferable interest rates, investment and advisory services to First Nation governments that voluntarily schedule to the First Nations Fiscal Management Act. FNFA does not rely on federal government funding and is self-sufficient.

Media Contact:

Jennifer David, FNFA

Director of Communications and Marketing

Email: jdavid@fnfa.ca

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