The federal government on Jan. 21 announced it would pay $2.8 billion to settle a class-action lawsuit brought by members of two B.C. First Nations bands seeking compensation for students who attended residential schools as day scholars.
Minister of Crown-Indigenous Relations Marc Miller said the settlement just signed was for “unfinished business” from an earlier settlement in 2021, making this the second of two agreements under the lawsuit.
Millar said the $2.8 billion will be held in a not-for-profit trust fund that will operate independent of the government.
The settlement applies specifically to IRS day-scholar students, who were not eligible for a 2006 settlement that applied only to IRS live-in students with a $1.9 billion compensation package, which was made under Prime Minister Stephen Harper’s government.
The agreement must still receive Federal Court approval between Feb. 27 and March 1, followed by an appeal period, before the money is released and transferred to the trust fund.
The funds are intended to be used to promote and protect indigenous language, culture, heritage, and the wellness of First Nations communities.
Miller said this is the first time Canada is providing compensation to indigenous bands and communities related to residential schools.
Individual First Nations bands will develop 10-year implementation plans to use and disperse the funds.