Canada has reached a $40billion agreement in principle to compensate First Nations children harmed by an underfunded child welfare system.

The deal is slated to end a human rights challenge that launched 14 years ago.

Minister of Indigenous Services Patty Hajdu made the announcement on Tuesday.

Nearly $20 billion of the funding will be going to those impacted by the discriminatory underfunding of the First Nations child and family services program that led to children being taken from their families or caregivers.

Another $20 billion will be spent over the next five years to reform the First Nations Child and Family Services program and begin the work to reform Jordan's principle and other departmental initiatives.

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