‘Really big blow:’ Indigenous CEO calls for private capital after $2.3 billion cut in programs

Tracee Smith, founder and CEO at Keewaywin, joins BNN Bloomberg to discuss the implications of the 2025 budget for indigenous business following $2.3 billion cu

Canada reducing funding for Indigenous programs is a “big blow” to communities who may be better off looking for private capital to fulfill their needs, said a First Nations CEO.

The federal Liberal government tabled its 2025 spending plan on Tuesday which shows an over $2.3 billion cut in funding for two Indigenous programs over the next five years.

What’s especially notable and disappointing this year are the programs facing the cuts, Tracee Smith, an Indigenous CEO for venture capital Keewaywin Capital In, told BNN Bloomberg on Tuesday.

The budget report states Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs will face a two per cent cut per year for efficiency.

“I think that’s really going to be felt on the ground in these communities across the country,” said Smith.

She said while the government says it’s making the cuts to increase efficiency —meaning they’re going to cut back on bureaucrats sitting in offices — it’s the people in the communities who are affected when there is no one to answer their call.

“The frustration continues to grow with dealing with these departments in terms of accessing the financing they’re entitled to and also the programs they need to continue to build infrastructure: housing, health, education,” said Smith, whose venture capital firm lends money to Indigenous communities.

The budget report states the ”government remains committed to reconciliation” and the two programs deliver important programs that are legally or constitutionally required, including child and family services, primary health care, and essential community infrastructure.

“The government will review how these organizations can deliver these programs more efficiently, with a two per cent savings target,” said the report.

Money for housing

Smith said Indigenous communities need housing, and the government’s funding programs are not going far enough.

Approximately $350 billion is needed to address the infrastructure gap, according to a 2024 report from the Assembly of First Nations which consulted 401 First Nations across Canada.

The federal government launched The First Nation Infrastructure Fund in 2007 to help Indigenous communities upgrade public infrastructures and the Indigenous Community Infrastructure Initiative in 2021 to offer long term loans to Indigenous infrastructure projects.

The 2025 budget lists $2.8 billion for urban, rural, and northern Indigenous housing. There is also over $3 billion remaining for First Nations, Inuit, and Métis to advance their housing priorities.

“At the core of it, you know, their vision is not really focused on Indigenous housing and infrastructure. They’re focused more on energy projects and nuclear deals and things like that,” said Smith.

More money in private capital

Smith said Indigenous communities need to look at ways to leverage private capital to fill in gaps of government funding.

“There’s way more private capital than there is government money,” said Smith.

She said she is seeing more investors who want to put their money and get a return with their capital while also making a social impact.