The Federal Court grants approval to a $23 billion settlement for First Nations child welfare.

A Federal Court judge has granted verbal approval for a historic $23 billion settlement, which will entail the Canadian government compensating over 300,000 First Nations children and their families for the chronic underfunding of child-welfare services on reserves.

The Assembly of First Nations and the First Nations Child and Family Caring Society initiated a human-rights complaint in 2007 that led to this significant development.

In 2016, the Canadian Human Rights Tribunal characterized the federal government’s handling of First Nations child welfare as ‘deliberate and reckless.’ The tribunal determined that First Nations were disproportionately affected by government-provided services and, in some instances, were denied services due to government involvement.

Last year, Ottawa proposed a $20 billion budget for child-welfare system reform and an additional $20 billion for compensation. However, the tribunal expressed concerns that not all eligible claimants would receive compensation.

Patty Hajdu, the Minister of Indigenous Services, expressed her satisfaction with the approved settlement and hopes it will bring peace to the litigants.