Estimating First Nations and Inuit police services funding gap

Summary

In response to a request by the Standing Committee on Indigenous and Northern Affairs, this report provides an estimate of the operational funding gap for First Nations and Inuit communities served by self-administered police services supported by the First Nations and Inuit Policing Program (FNIPP). It also projects the value of one-time costs to meet provincially estimated service needs, which vary by jurisdiction as each is responsible for the administration of justice.[^1]

Potential federal legislation may introduce elements which differ from existing provincial requirements, affecting resource needs and associated costs. While no specific legislation has been tabled by the Government, Public Safety Canada has published proposed elements.[^2] With no timeline, community characteristics and policing needs at implementation may tangibly differ from those today.

This report considers the 36 self-administered police services supported by FNIPP through Self-Administered Policing Agreements in 2024-25. The difference between projected annual operating funding to meet provincially estimated service needs and that projected under self-administered agreements as of 2026-27 represents the operational funding gap.

PBO estimates an operational funding gap of $447.2 million as of 2026-27, equivalent to 103.0 per cent of projected funding under self-administered agreements (Table S-1). Using the FNIPP cost-sharing ratio of 52 per cent, the federal cost of the operational funding gap is estimated at $232.5 million as of 2026-27. These projections cover recurring items such as wages, ongoing training, and routine operations.[^3] This gap is primarily driven by the need for 841 additional funded officers, equivalent to an increase of 54.8 per cent relative to projected levels under current funding agreements.

Our November 25, 2025 report identifies possible reasons for this gap, including federal and provincial-territorial budget constraints, misaligned financial cycles, and differing service standards across jurisdictions.

PBO’s cost estimate does not account for changes to FNIPP funding since 2024-25 or for additional funding sources through other federal or provincial initiatives. Further cost increases could occur if additional communities pursue Self-Administered Policing Agreements. Potential federal legislation may introduce elements which differ from existing provincial requirements, affecting resource needs and associated costs. With no timeline, community characteristics and policing needs at implementation may tangibly differ from those today.

PBO estimates the value of one-time costs to meet provincially estimated service needs at $1,820.4 million as of 2026-27 (Tables S-2). Using the FNIPP cost-sharing ratio of 52 per cent, the value of federal one-time costs is projected to be $946.6 million as of 2026-27. This reflects the cost of non-recurring capacity-building items, such as induction training, equipment, and infrastructure.[^4] In the event sufficient funding is secured, these costs would likely be incurred over multiple fiscal years depending on the readiness of each police service.

Background

In response to a request by the Standing Committee on Indigenous and Northern Affairs, as part of its study of Indigenous Policing and Public Safety, this report provides an estimate of the annual operational funding gap for First Nations and Inuit communities served by self-administered police services supported by the First Nations and Inuit Policing Program (FNIPP). It also projects the value of one-time costs to meet provincially estimated service needs, which vary by jurisdiction as each is responsible for the administration of justice.

Most First Nations and Inuit communities receive police services through Self-Administered or Community Tripartite Policing Agreements negotiated between the federal government, provincial or territorial governments, and First Nations and Inuit communities under the FNIPP.[^5] Funding under FNIPP is shared: 52 per cent federal and 48 per cent provincial-territorial.[^6] Public Safety Canada and provincial or territorial governments monitor the application of the terms and conditions set out in each agreement, as well as guidelines on eligible expenses and how funds can be spent. In addition, the federal government also provides one-time funding for facilities through the First Nations and Inuit Policing Facilities Program (FNIPFP) under the same cost-sharing structure.[^7]

A recent evaluation of the FNIPP calls attention to the finite allocated budget, which has led to what most stakeholders believe is an underfunding of FNIPP-funded policing agreements. As a result, the scope and nature of policing services available to participating communities are limited and face ongoing operating challenges that hamper the working conditions of FNIPP-funded officers and can impact their physical and mental wellbeing.[^8]

Our estimates focus on First Nations and Inuit communities with Self-Administered Policing Agreements under FNIPP.[^9] Under Self-Administered Policing Agreements, communities are responsible for establishing and administering their own police service. This is done by creating a police governance board according to provincial or territorial policing legislation. A police governance board is responsible for public oversight as well as police officer staffing and training matters. Like non-Indigenous municipal police services, these independent police services are led by a Chief of Police who reports to the police governance board.[^10]

Table 1 provides an overview of existing self-administered police services supported by FNIPP.[^11] There is considerable variation in the size of self-administered police services, reflecting community traits and preferences. As of December 2025, 36 Self-Administered Policing Agreements served 160 First Nations and Inuit communities with a total population of 178,139.

Table 2 presents the distribution of communities by geography type using data from Public Safety Canada, which is informed by Crown-Indigenous Relations and Northern Affairs Canada’s geographic zones.[^12] Non‑remote communities have year-round road access and are near service centres, road‑access communities also have year-round road access but are over 50 km from the nearest service centre, and fly-in communities lack year-round road access. Nearly half of residents served reside in non-remote communities, which tend to have larger populations than road access and fly-in communities.

Cost Estimate

Projected operating funding to meet provincially estimated service needs is compared to projected funding under self-administered agreements to estimate an operational funding gap as of 2026-27.

The 2026-27 value of one-time costs to meet provincially estimated service needs is also projected.

Results

PBO estimates an operational funding gap of $447.2 million as of 2026-27, equivalent to 103.0 per cent of projected funding under self-administered agreements. Using the FNIPP cost-sharing ratio of 52 per cent, the federal cost of the operational funding gap is estimated at $232.5 million as of 2026-27. These projections cover recurring items such as wages, ongoing training, and routine operations.[^13] This gap is primarily driven by the need for 841 additional funded officers, equivalent to an increase of 54.8 per cent relative to projected levels under current funding agreements.

Our November 25, 2025 report identifies possible reasons for this gap, including federal and provincial-territorial budget constraints, misaligned financial cycles, and differing service standards across jurisdictions.

PBO’s cost estimate does not account for changes to FNIPP funding since 2024-25 or for additional funding sources through other federal or provincial initiatives. Further cost increases could occur if additional communities pursue Self-Administered Policing Agreements. Potential federal legislation may introduce elements which differ from existing provincial requirements, affecting resource needs and associated costs. With no timeline, community characteristics and policing needs at implementation may tangibly differ from those today.

Examining estimated operational funding gaps by police service provides further insight into the diverse needs of communities served by self-administered police services supported by FNIPP. Figure 1 presents each police service’s estimated operational funding gap as a per cent of projected operating funding under their respective agreement.

Office of the Parliamentary Budget Officer.

Office of the Parliamentary Budget Officer.

Geography types follow the categories provided by Public Safety Canada, which is informed by Crown-Indigenous Relations and Northern Affairs Canada’s geographic zones. Mixed-geography services are classified by their most remote community.

Variation is observed within geographic groups, implying factors beyond remoteness impact the magnitude of estimated operational funding gaps. Across all services, the gap is estimated to be 103.0 per cent of projected operating funding under self-administered agreements. Individual police service gaps range from 1.4 per cent to 572.3 per cent.

There is also wide variation in the scale of funded officer gaps. Across all services, the estimated gap is 54.8 per cent of 2024-25 funded officers. Individual police service gaps range from 0.0 per cent to 450.0 per cent.

PBO estimates the value of one-time costs to meet provincially estimated service needs at $1,820.4 million as of 2026-27. Using the FNIPP cost-sharing ratio of 52 per cent, the value of federal one-time costs is projected to be $946.6 million as of 2026-27. This reflects the cost of non-recurring capacity-building items, such as induction training, equipment, and infrastructure.[^14] In the event sufficient funding is secured, these costs would likely be incurred over multiple fiscal years depending on the readiness of each police service.

Data and Methodology

Operating funding under self-administered agreements was projected for 2026-27 by applying a 2.75 per cent escalator to 2024-25 FNIPP funding figures provided in Information Request IR0876.[^15] This projection does not account for changes to FNIPP funding since 2024-25 or for additional funding sources through other federal or provincial initiatives.

Resource needs estimated by provinces are obtained from Public Safety Canada through Information Request IR0875.[^16] These include uniform and non-uniform staffing levels, equipment, and facilities as estimated by provincial authorities.

Unit costs draw on financial data from First Nations and Inuit as well as non-Indigenous police services across Canada. To prevent unit costs from reflecting geographic characteristics specific to source communities, non-remote equivalents are estimated where appropriate. The median of these non-remote values forms the baseline unit cost estimates.[^17]

For each police service, baseline unit costs are adjusted to reflect shipping, living, and fuel costs in the communities served.[^18] These were grown in line with inflation in PBO’s economic and fiscal outlook to reflect fiscal year 2026-27.[^19]

Adjusted unit costs are combined with estimated resources to project operating costs under provincially estimated service needs as of 2026-27. The same approach is used to project the 2026-27 value of one-time costs. The service needs estimated by provinces rely on assumptions intended to support planning rather than prescribe budgets for First Nations and Inuit police services.

The projected operational funding gap does not account for any elements under potential federal legislation which may differ from provincially estimated service needs. Any divergence could result in a change of costs for federal and provincial governments. While no specific legislation has been tabled by the Government, Public Safety Canada has published proposed elements.[^20] Further cost increases could occur if additional communities pursue Self-Administered Policing Agreements.