Province announces review of child welfare funding, governance By: Carol Sanders Posted: 2:22 PM CDT Tuesday, Jul. 28, 2026 Last Modified: 5:34 PM CDT Tuesday, Jul. 28, 2026 Updates

An independent external review of provincial Child and Family Services funding and its governance model, which is expected to begin this fall, is long overdue, says one Indigenous leader who described a system in crisis.

“We’re sort of meeting a crisis in terms of the funding formula as it stands right now,” said Grand Chief Jerry Daniels of the Southern Chiefs Organization, one of several Indigenous and child welfare organizations that have called for a funding review in recent years.

“We know right now that it’s not meeting the needs.”

“We know right now that it’s not meeting the needs, because our agencies are not being able to manage the caseloads under the current fiscal regime,” Daniels said Tuesday after the province announced it’s ordering a deep dive into the $427-million budget for CFS authorities. “They need to take a close look at why that is and what is the true nature of the financial crisis that agencies are experiencing right now.”

On Tuesday, Families Minister Nahanni Fontaine announced the review to help strengthen the child welfare system, improve transparency and support better outcomes for children, youth and families.

The current model of “single envelope funding” introduced in 2019 by the previous Tory government provides overall policy direction and funding, while the four CFS authorities oversee and manage funding for their mandated agencies. The previous funding model allowed agencies to invoice the province for individual expenses associated with children in their care — independent from their authority and budget.

“We want children and families to have the supports that they need so that they can thrive. We want our people to be healthy.”

Fontaine said she’s heard from leaders, agencies and authorities about funding challenges.

“That’s why I think this review is so important, to get a really good line of sight on the fiscal health of CFS funding in Manitoba and governance and how that all works together,” she said at a news conference.

“We want children and families to have the supports that they need so that they can thrive. We want our people to be healthy.”

A consulting firm will be selected through a competitive procurement process to assess funding supports and pressures within Manitoba’s CFS system, examine financial management and oversight practices, review governance structures as they relate to funding and accountability and identify funding and governance opportunities to support the return of Indigenous jurisdiction over child welfare.

The minister said the contract will be awarded this fall, with the findings made public by the end of 2027.

Tory families critic Jodie Byram said the review should’ve included systemic failures that led to children’s deaths, and called for transparency in the procurement process and the review’s findings.

The Manitoba Advocate for Children and Youth said she hopes the voices of youth will be included in the review.

“We share the same goal, which is to ensure young people across Manitoba have the resources and supports they need to thrive,” Sherry Gott said in an email. Her office shared the concerns of service providers, agencies, authorities and Indigenous governments regarding the current funding model with Fontaine’s office earlier this year, she said.

When asked why it’s taken the NDP government nearly three years into its mandate to order the funding review, Fontaine said steps have been taken to understand authorities’ and agencies’ financial situation. She expects to see some of the findings from financial audits of the authorities in the next two weeks.

“It’s clear from those financial reviews that an independent external review is needed,” she said, noting those findings won’t be shared with the public.

Fontaine said since the NDP took office in 2023, annual funding to the CFS system has increased by $77 million in response to pressures identified by agencies and authorities. She wouldn’t say if the funding now being provided is enough.

She said the CFS funding and governance model must support Indigenous-led care and the exercise of Indigenous jurisdiction over the well-being of children and families. A review will provide a clearer understanding of the needs and challenges within the current model, while identifying what changes may be needed to better support children, families, caregivers and communities, she said.

Daniels said the single-envelope funding that’s provided isn’t enough, even with the funding bump from the province.

“The vast majority of the children entering care are ending up incarcerated on the streets and addicted to drugs,” said Daniels, who is skeptical of jurisdiction transferring from the province to First Nations without the proper funding to go with it.

“We have to take a very close look and start to invest to create healthy outcomes until we see the trend going in a direction (where) more children are ending up with higher education attainment rates, are ending up in specialized qualified jobs in the industry,” Daniels said.

“That’s the narrative that needs to come out of child welfare. Until that happens, there is no success on this file.”

carol.sanders@freepress.mb.ca