Compensation for Victims of Discrimination: First Nations Child and Family Services and Jordan’s Principle Settlement

Children & Youth | Family Law

Tuesday, November 25, 2025

Purpose

This blog post provides general information on an important settlement for victims of discrimination in Canada’s First Nations Child and Family Services Program and Jordan’s Principle.

The purpose of this blog post is to share information. It is not legal advice.

For more information and to submit a claim, visit: Compensation – First Nations Child and Family Services and Jordan’s Principle Settlement

Abbreviations Used

  • CHRT = Canadian Human Rights Tribunal
  • Compensation Settlement Agreement = First Nations Child and Family Services and Jordan’s Principle Settlement
  • FNCFS Program = First Nations Child and Family Services Program
  • ISC = Indigenous Services Canada

Background

  • The Compensation Settlement Agreement is intended to compensate those harmed by discriminatory underfunding of the federal government’s FNCFS Program and its narrow interpretation of Jordan’s Principle.
  • There are a few separate legal proceedings that relate to the same issues: a human rights case and multiple class actions. Because of this, the settlement followed multiple tracks for approval: the human rights case was before the Canadian Human Rights Tribunal (CHRT), and the class actions were before the Federal Court. Both the class actions and the human rights case are included under the Compensation Settlement Agreement.
  • Some of the parties to the CHRT case and the parties to the class actions worked together to negotiate the Compensation Settlement Agreement, which was then approved by the CHRT and the Federal Court.
  • The human rights component of the Compensation Settlement Agreement is part of a larger case, ongoing since 2007, about discrimination against First Nations children and families in Canada’s funding and delivery of the FNCFS Program and implementation of Jordan’s Principle. (For more background on the human rights case, see the Caring Society’s website: I Am a Witness: Human Rights Case | First Nations Child & Family Caring Society.)
  • In 2019 CHRT 39, the CHRT found that Canada wilfully and recklessly discriminated against First Nations children and their caregivers in its approach to the FNCFS Program and Jordan’s Principle. The CHRT found that Canada’s conduct led to “pain and suffering of the worst kind” that warranted maximum compensation for children and families (see 2019 CHRT 39, paras 225, 234).

    “The evidence and findings above support the finding that Canada was aware of the discrimination adversely impacting First Nations children and families in the contexts of child welfare and/or Jordan’s Principle and therefore, Canada’s conduct was devoid of caution and without regard for the consequences on First Nations children and their parents or grandparents which amounts to a reckless conduct compensable under section 53 (3) of the CHRA. The Panel finds that Canada’s conduct amounts to a worst-case scenario warranting the maximum compensation of $20,000 under the Act.” (2019 CHRT 39, para 242)

  • On July 26, 2023, the CHRT released a decision approving the revised Compensation Settlement Agreement. (The Tribunal released a short “letter decision” first, followed by full reasons in 2023 CHRT 44).
  • At the time of the CHRT decision, there were parallel class action lawsuits about the same subject, which included more people than the CHRT decision. The class actions were heard together before the Federal Court. On October 24, 2023, the Federal Court approved the Compensation Settlement Agreement. (See the Federal Court’s reasons here: 2023 FC 1466 (CanLII) | Moushoom c. Canada (Procureur général) | CanLII).

Basics of the Compensation Settlement Agreement

  • The total amount of the Compensation Settlement Agreement is $23.34 billion.
  • There are nine different groups of people eligible for compensation (called “Classes”). Compensation amounts and timelines for the distribution of compensation vary by Class. Generally, payments may be up to $40,000 for each eligible Removed Child (or more, depending on the number of claimants).

Who is Eligible to Receive Compensation Payments Now?

  • Compensation is not yet available for all of the eligible Classes. Right now, claims are only being accepted for the Removed Child Class and the Removed Child Family Class.
  • The Removed Child Class includes:
  • First Nations children who, while under the age of majority between April 1, 1991 and March 31, 2022, were removed from their homes and placed into care funded by ISC.
  • Removal must have happened while the child or at least one of their Caregiving Parents or Caregiving Grandparents were ordinarily resident on-reserve or in the Yukon.
  • Individuals who were Crown wards and individuals who were removed from their homes and later returned may be eligible.
  • The Removed Child Family Class includes:
  • Caregiving Parents or Caregiving Grandparents of a member of the Removed Child Class.
  • “Caregiving Parents” are the child’s biological parents, adoptive parents, or stepparents who were living with the child and actively taking on parental responsibilities at the time the child was removed from the home.
  • “Caregiving Grandparents” are the child’s biological or adoptive grandparents who were living with the child and actively taking on parental responsibilities at the time the child was removed from the home.
  • Some individuals may be eligible for compensation as a Removed Child and as a Caregiving Parent or Caregiving Grandparent.
  • Compensation for Removed Child Family Class claims is based on a priority system. For example, if multiple caregivers make claims regarding the same child, whomever the child was removed from first will have priority to receive compensation.
  • Eligibility for compensation does not apply to:
  • Foster parents.
  • Caregiving Parents and Caregiving Grandparents who committed Abuse (as defined in the Compensation Settlement Agreement) that led to the removal of the child.
  • Children or Caregiving Parents or Caregiving Grandparents of children who left home on their own (were not removed by child welfare authorities) or where a child’s placement wasn’t funded by ISC.
  • Siblings, cousins, or godparents are not eligible unless they adopted the child through a recognized provincial, territorial, or custom adoption process. (Note: others may still benefit from the Cy-près fund, for more information on the Cy-près fund see: Additional Funds – First Nations Child and Family Services and Jordan’s Principle Settlement).
  • For more information on the Removed Child Class and Removed Child Family Class see:
  • We will post more information about the other eligible Classes when compensation becomes available.

How to Apply for Compensation

  • Claims Helpers are available to claimants at no cost. A Claims Helper can be requested by calling 1-833-852-0755 (toll-free) Monday to Friday from 8am-8pm.
  • The claims registration period opened March 10, 2025.
  • If a claimant was over the age of majority when the claims period opened on March 10, 2025, they have 3 years to submit their claim, with the possibility of a one-year extension.
  • If a claimant is a minor, they can submit their claim up to 2 years before reaching the age of majority where they reside, but their claim will not be processed until they reach the age of majority.

Role of First Nations Leadership in the Compensation Settlement Agreement Process

  • First Nations may be called upon to provide letters or otherwise to confirm an individual is recognized as a citizen or member of their First Nation whether under treaty, agreement or First Nations’ customs, traditions or laws.

Related Previous Blog Posts

First Nations win major child welfare case – OKT | Olthuis Kleer Townshend LLP

Canada Ordered to Stop Discriminating Against First Nations Children, For the Third Time – OKT | Olthuis Kleer Townshend LLP

A Victory for First Nations Children: Jordan’s Principle Recognized – OKT | Olthuis Kleer Townshend LLP

https://www.oktlaw.com/first-nations-children-special-needs-going-get-fair-treatment/

Canada still discriminating; Tribunal tells Canada to stop it, immediately, again – OKT | Olthuis Kleer Townshend LLP

Federal Court Upholds CHRT Decisions re Compensation and Jordan’s Principle Eligibility – OKT | Olthuis Kleer Townshend LLP

How Jordan’s Principle Can Help Support First Nations and Inuit Children Through COVID-19 & Beyond – OKT | Olthuis Kleer Townshend LLP

 

 

Written by
Sinéad Dearman

sdearman@oktlaw.com

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