The Vision Behind the Indigenous Early Learning and Child Care (IELCC) Framework

In 2018, the Government of Canada and Indigenous partners co-developed the Indigenous Early Learning and Child Care (IELCC) Framework. This distinctions-based framework was designed to support First Nations, Inuit, and Métis children and families with high-quality, culturally appropriate, and accessible early learning – whether they live in urban, rural, remote, or on-reserve settings.

The IELCC Framework promised:

• Culturally grounded child care rooted in Indigenous languages, traditions, and governance.
• Indigenous control over program design, delivery, and evaluation.
• Investments in child care infrastructure, workforce training, and new spaces.

Budget 2021: The Funding Commitments

Budget 2021 committed $2.5 billion over five years to Indigenous Early Learning and Child Care, building on previous funding in the 2020 Fall Economic Statement. This includes:

• $1.4 billion over five years to expand programming, build governance capacity, extend hours, train and retain staff, and create up to 3,300 new spaces, including Aboriginal Head Start in Urban and Northern Communities.
• $515 million over five years for before- and after-school care for First Nations children on reserve.
• $264 million over four years to repair and renovate existing centres.
• $420 million over three years to build and maintain new centres.
• Annual program funding increases of 3% starting in 2027–28.

How the Funding Flows: The Contribution Agreement Model

The federal government distributes IELCC funds primarily through distinctions-based funding envelopes:

1. First Nations – negotiated with the Assembly of First Nations (AFN) and delivered through Indigenous governing bodies.
2. Inuit – negotiated with Inuit Tapiriit Kanatami (ITK).
3. Métis – negotiated with the Métis National Council (MNC).

From these national agreements, the money flows through contribution agreements:

• Contribution agreements are formal funding contracts between the federal government and Indigenous governments, councils, or designated organizations.
• They specify the funding amounts, eligible activities (e.g., opening new spaces, staff training, infrastructure), timelines, and reporting requirements.
• Indigenous communities then allocate funds to service providers such as band-operated child care centres, Indigenous early learning hubs, or community organizations.

Where Urban Indigenous Communities Fit Into Funding

Urban Indigenous organizations, such as Friendship Centres, often do not receive funding directly from the main distinctions-based envelopes. Instead, they may:

• Access funds through separate federal programs like Aboriginal Head Start in Urban and Northern Communities (AHSUNC).
• Partner with municipalities or provinces, which may retain control over funding decisions and program oversight.
  

The evaluation of the IELCC Transformation Initiative found that this model often leaves urban Indigenous families underserved. Because funding distribution is heavily tied to on-reserve and distinction-specific allocations, urban Indigenous-led child care remains underfunded, even though 88% of Indigenous people in Ontario live in urban areas.

Why Understanding Indigenous Child Care Funding Matters

Indigenous child care funding is purposefully distinction-based, flowing from federal commitments through agreements with First Nations, Inuit, and Métis organizations, and then to local programs. This model ensures Indigenous communities maintain control over program design, delivery, and culturally grounded care. However, it also highlights gaps, particularly for urban Indigenous families. Understanding where the money comes from and how it is distributed is essential for anyone interested in supporting equitable, culturally appropriate early learning for Indigenous children across Canada.