What you need to know about new legislation that could expand First Nations status

OTTAWA — All four opposition parties in the House of Commons are backing legislation to change status rules in the Indian Act to end what is known as the second-generation cutoff.

But the Liberals say while they support changes to registration eligibility, more consultations with First Nations are needed before the law is amended.

The bill passed second reading in the House of Commons last week and will now go to the House of Commons Indigenous and Northern Affairs committee for further study.

First Nations status is a highly complex and personal topic, and changes to the rules on who can claim status will have ripple effects throughout both First Nations communities and individual families with mixed legal standing under the Indian Act.

First Nations status under the Indian Act allows individuals to access certain social services and tax benefits. Under the current rules, however, individuals whose close family members hold status may themselves be ineligible.

Here’s what you need to know about First Nations status, the issues that have been raised by chiefs, and how the government is responding:

What does the bill seek to change?

Bill S-2, introduced in the Senate with support from the Liberal government, was drafted to eliminate some gender inequities in the Indian Act and allow some 3,500 people to become eligible for First Nations status.

Some senators and First Nations community leaders said the bill didn’t go far enough. Senators voted to extend eligibility requirements to allow status to be transferred to children if one of their parents is registered, and sent the legislation to the House of Commons.

The Senate committee studying the legislation heard from nearly 50 witnesses, all of whom said the second-generation cutoff needs to be eliminated. Senators said those voices represent more than half of First Nations in Canada.

How do you qualify for First Nations status now?

Current law uses a formula to determine whether an individual qualifies for First Nations status.

There are two categories of status under the Indian Act — 6(1) and 6(2).

Generally, a person with 6(1) status is considered to hold “full” status, while a 6(2) individual holds “half” status.

Individuals registered under 6(1) are able to transfer status to their children — even if they had those kids with someone who does not have status. In that case, their children would be granted 6(2) status.

If a 6(1) individual has children with a 6(2) status person, those children are considered 6(1). The same is true for someone registered under 6(1) who has children with another 6(1) individual.

Individuals who are 6(2), meanwhile, are unable to transfer status to their children unless they had those children with someone who is 6(1) or 6(2).

This is what’s known as the “second-generation cutoff” and it’s where most of the criticism is focused.

Why change the eligibility requirements?

First Nations are the only Indigenous group in Canada whose recognition is determined by the federal government.

Critics have argued the formula for First Nations status punishes people over their choice of partners. Some chiefs have warned they will have no status First Nations members at all in the next generation under the current eligibility requirements — which would essentially eradicate their status as distinct peoples.

The United Nations also has raised concerns about how Canada determines First Nations status, saying the current system primarily affects First Nations women and denies their descendants equal access to treaty and inherent rights.

Some First Nations set their own membership rules — but this does not necessarily mean the people they recognize as members of their First Nation are seen that way by the federal government.

What does the federal government say?

The federal government began looking into the issue in 2018. It released a report in 2019 that said the second-generation cutoff was something First Nations wanted resolved, but there was no consensus on a way forward.

Consultations between Ottawa and First Nations on the topic have continued since.

Gull-Masty warned senators against amending Bill S-2 to remove the second-generation cutoff and assured them she would come back with a plan in 2026.

When the bill was up for debate in the House of Commons last week, Gull-Masty said the “second-generation cutoff is a critical issue that must be addressed the right way,” but there are still questions on when changes will be made.

Opposition parties, meanwhile, signalled support for the changes made by senators, including MPs from the NDP, Green party, Conservatives and the Bloc Québécois.

MP Billy Morin, the Conservative critic for Indigenous Services, said in a speech Friday in the House of Commons the legislation gives Parliament a unique opportunity to broaden eligibility requirements without First Nations leaders going to court. He said the Liberals should support the changes proposed by the Senate.

NDP MP Lori Idlout accused the Liberals of using consultations on the issue as a delaying tactic, and that First Nations leaders have been raising issues for years about the second-generation cutoff.

What does the Assembly of First Nations say?

Assembly of First Nations National Chief Cindy Woodhouse Nepinak has said First Nations know who belongs to their communities and “it is time Canada finds another lane and respect First Nations citizenship and First Nations sovereignty over their population, membership and people.”

Last December, chiefs passed resolutions at the Assembly of First Nations calling for a process to end the second-generation cutoff and to recognize First Nations jurisdiction over status.

Regional First Nations groups, including the British Columbia Assembly of First Nations and the Union of B.C. Indian Chiefs, have also called for the elimination of the second-generation cutoff.

Several First Nations groups welcomed the changes made to Bill S-2 by senators. Anishinabek Nation, representing 39 First Nations in Ontario, praised senators for having the “courage” to change the bill.

What happens if eligibility shifts to a one-parent rule?

If the amendments made in the Senate pass in the House of Commons, Morin said approximately 22,000 people would be added to the Indian Act registry in the first year, and between 7,000 and 8,000 people per year for the next 30 to 40 years.

While the amendments are largely supported by First Nations, some remain concerned about the prospect of taking on an unknown number of new members.

Chippewas of the Thames First Nation Chief Joe Miskokomon told The Canadian Press he is not opposed to changes, but he fears Indigenous Services Canada will not increase funding to support new members, making it difficult to plan for new infrastructure projects.

Morin said the cost per new registered member would be marginal, accounting for about $2,000 per person.

This report by The Canadian Press was first published March 2, 2026.

Alessia Passafiume, The Canadian Press