Inaugural reconciliation report finds progress, warns structural barriers remain

Canada entered its most active period of federal reconciliation work since the Truth and Reconciliation Commission (TRC) issued its 94 Calls to Action 11 years ago, reads the inaugural report from the National Council for Reconciliation (NCR). 

But the country’s first legislated independent assessment on Canada’s reconciliation progress warns that the increased activity has yet to produce fundamental structural change.

The report, issued July 20, finds efforts have been made in rights-based legislation, child welfare discrimination settlements, increased investment and expanded distinctions-based partnerships, but persistent barriers continue to affect First Nations, Inuit and Métis peoples.

Those barriers include continued short-term program funding, fragmented government responsibilities, gaps in data and measurement, engagement fatigue and rising residential school denialism.

“We’ve had federal activity that’s increased over time, and there are systems that shape the daily realities for First Nations, Métis and Inuit people. But we’re not seeing a lot of change,” said Julie Ann Wriston, interim chair of the NCR.

“Canadians need to pay attention because reconciliation isn’t really about symbolism. It’s about whether our lives are improving. It’s about whether there are real structural changes, and our report is an opportunity to highlight progress or where we might need to be paying attention.”

The TRC’s Calls to Action, released in 2015, are meant to address the legacy of residential schools and advance reconciliation between Indigenous peoples and the rest of Canada. The NCR and its annual report were envisioned by the TRC in Calls to Action 53 to 56. These  called for an independent, Indigenous-led national body to monitor progress, backed by long-term funding and access to government data. The National Council for Reconciliation Act came into force in July 2024.

For the council’s first assessment of federal leadership on 76 of the Calls to Action, the NCR and Crown-Indigenous Relations and Northern Affairs Canada co-hosted the first Federal Convening Circle on reconciliation. The April 21 gathering brought together senior officials from 16 departments and agencies for “candid dialogue on federal progress.” The NCR also interviewed 20 Indigenous and settler scholars to gain their insights on the current state of reconciliation in Canada.

The NCR identified meaningful progress made since 2015 in federal rights-based legislation with the passage of the United Nations Declaration on the Rights of Indigenous Peoples Act and the Indigenous Languages Act, and in the development of the Indigenous Justice Strategy, which means to address the overrepresentation of Indigenous peoples in the criminal justice system. 

The report acknowledges Canada’s efforts to address failures in child welfare with settlements for past discrimination and agreements to reform the First Nations Child and Family Services Program. It recognizes the evolving work undertaken on distinctions-based, Indigenous-led health governance.

But the report also says many Calls to Action remain only partially implemented with continuing inequities in child welfare, education, income, health and justice. Some Calls have also been classified as completed based on legal or procedural changes despite broader systemic concerns remaining unresolved.

Federal reporting itself remains a concern. The NCR found that Ottawa continues to emphasize activities, legislative changes and funding announcements rather than on providing evidence that conditions are improving. This makes it difficult for Parliament, Indigenous peoples and the general public to determine whether federal action is producing results.

“What gets measured gets done, right?” Wriston said.

Data gaps pose another obstacle. Federal performance systems largely track programs, training and policy changes rather than Indigenous-defined outcomes, such as shifts in jurisdiction and power, language revitalization, community well-being, justice and safety.

Unstable funding is another recurring concern. Crown-Indigenous Relations and Northern Affairs Canada reported that 82 per cent of its funding is temporary, with 60 per cent scheduled to expire by 2028. The NCR warns that short-term funding creates instability as communities invest in programs only to risk losing the resources needed to sustain them.

“The issues that we’re seeing show up in programs that start and stop, so there’s not that longevity. Commitments may not hold over time, and a lot of the time you see some progress and then the tap turns off,” Wriston said.

 “The opportunity now is to focus on those long-term, rights-based structural changes.”

The gap between government action and measurable outcomes is apparent across several areas. By late 2024, Ottawa reported 11 child and family services co-ordination agreements, 19 Indigenous child and family services laws in force, and another 26 co-ordination tables underway. Despite those changes, Indigenous children remain vastly overrepresented in care, while fragmented data makes it difficult to determine whether fewer children are entering the system.

Federal funding for First Nations K-12 education on reserve nearly doubled between 2015-16 and 2023-24, with 10 regional education agreements in place. Yet large gaps in educational attainment and income persist between Indigenous and non-Indigenous people.

Similar disparities remain in health and justice. Indigenous health outcomes have generally improved only modestly since 2015, while First Nations, Inuit and Métis peoples remain significantly overrepresented in custody and among victims of violence.

The report also warns that reconciliation gains could be reversed as rights-based legislation, Indigenous language revitalization and reconciliation-focused education remain vulnerable to changing political priorities and funding pressures.

The scholar interviews also raised concerns about organized residential school denialism. Scholars described it as a co-ordinated problem that distorts evidence, retraumatizes survivors and fuels anti-Indigenous sentiment. They say it requires a national response rather than being treated solely as individual ignorance.

“This is not just an Indigenous conversation. This is a Canadian conversation, and the public has to play a meaningful part in this work,” Wriston said. “Part of that is continuing to learn the truth. We have to challenge denialism. We have to support Indigenous-led initiatives.”

The NCR is calling on Ottawa to develop a federal reconciliation plan with clear priorities, multi-year timelines and milestones for implementing the TRC Calls to Action. It also recommends stable, long-term funding for reconciliation programs and institutions.

Other recommendations include improving how reconciliation outcomes are measured, accelerating the alignment of federal laws and policies with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), and providing stable support for Indigenous-led language revitalization.

The NCR also wants reconciliation commitments protected from changing political and fiscal priorities through legislation and federal policies that strengthen long-term accountability.

 “Then we actually have a plan that we can sit down and sink our teeth into,” Wriston said.

Under the National Council for Reconciliation Act, the NCR and federal government both have annual reporting obligations.

The NCR report was submitted to Crown-Indigenous Relations Minister Rebecca Alty on June 30 and must be laid before each House of Parliament on one of the first 15 sitting days after its receipt. Once the report is laid before Parliament, Prime Minister Mark Carney has 60 days to respond on behalf of the federal government by publishing an annual report on the state of Indigenous Peoples outlining Ottawa’s plans for advancing reconciliation.

The NCR says it expects that response to be issued publicly and jointly with the council and to set out commitments and next steps.

Ultimately, the NCR report is intended to independently measure whether reconciliation is producing lasting change.

“The council’s job isn’t necessarily to applaud activity, but to look at whether real change is happening in the lives of First Nations, Inuit and Métis people,” Wriston said.

The NCR itself acknowledges the first report does not yet reflect every voice or region. Survivors whose voices were not heard directly, Indigenous youth, and individuals and communities in rural and remote regions are among those it intends to engage more deeply in future reporting.

“This council is just the first step in a long process that Canada is going to go through towards reconciliation,” Wriston said. “We hope to create a foundation that honours the history and the interest of First Nations, Métis and Inuit people in being a meaningful part of the Canadian fabric, and that Canada itself can say we know who we are on this point.”

To view the full report, visit https://reconciliation.ca/whats-new/.