National Chief Warns On-Reserve Infrastructure Gap Could Exceed $500 Billion by 2040 Without Federal Action.

The Assembly of First Nations warns that without immediate action from the federal government, the cost of fixing infrastructure on reserves could reach over $500 billion by 2040.

They’re urging Canada to invest $349.2 billion now to bridge the gap between First Nations and non-Indigenous communities by 2030. This pledge aligns with Prime Minister Justin Trudeau’s commitment to reconciliation, but the AFN fears Ottawa may fall short. According to National Chief Cindy Woodhouse Nepinak, without swift action, First Nations could endure another 60 years of inadequate infrastructure, housing, and digital access. The report, developed in collaboration with Indigenous Services Canada and BTY Group, covers various needs like housing, schools, water plants, roads, and digital connectivity.

The staggering deficit is attributed to decades of underfunding, federal shortcomings, and unequal wealth distribution. Additionally, the report functions as a comprehensive budget proposal. It pledges that injecting $349.2 billion would generate over 3.2 million jobs and bolster Canada’s GDP by more than $1 trillion. Woodhouse Nepinak emphasized that with the report’s endorsement by Indigenous Services Canada, the government can no longer justify underfunding and neglect. Following the report’s publication, the Minister of Indigenous Services affirmed commitment to the 2030 target during a cabinet meeting on Parliament Hill.

However, achieving this goal requires collaboration among all levels of government and the private sector, she emphasized. She added that aside from financial constraints, there may be practical challenges in certain cases that currently hinder infrastructure projects.

The assembly anticipates that without intervention, costs will escalate in the upcoming years due to economic factors such as inflation, rising construction expenses, and fuel prices, compounded by the ongoing deterioration of already inadequate infrastructure.

“Our report highlights that due to the government of Canada’s lack of action, the timeline for closing the gap is projected to extend to 2040, and the cost to address the infrastructure and housing disparities in First Nations communities by 2040 will soar to $527.9 billion,” remarked Woodhouse Nepinak.

The projection does not address the infrastructure challenges confronting Métis and Inuit communities.

In a separate report, the national organization Inuit Tapiriit Kanatami estimates that it would require $75.1 billion over 35 years to bridge the gap in Inuit regions.