The federal government has promised $3 million to the Regina-based First Nations University of Canada, the minister of Indian Affairs and Northern development Chuck Strahl says.
The money is just enough to let students finish the current school year and will not be released unless provincial money — which has already been promised — is actually provided.
Federal funding of the university, an annual grant of about $7.2 million, was stopped at the end of March. Provincial support, about another $5 million, was also cut off.
The government of Saskatchewan later promised to restore its funding but said the money would be delivered to the University of Regina, which has agreed in principle to manage the financial and administrative affairs of FNUC.
The federal dollars will only last a few months, Strahl said in a news release Thursday.
"This funding will fulfil our commitment to provide the students of First Nations University of Canada with the assistance they need to complete their current school year, which ends August 31, 2010."
According to the federal government, the money will come from an existing program called the Indian Studies Support Program.
The money has other conditions, beyond requiring the province's financial support for FNUC.
"As a recipient of funding under the Indian Studies Support Program, the University of Regina, will be required to provide the department with financial reports, as well as a statistical report detailing the courses offered and completion rates of students in those courses," the federal news release said.
The federal support was viewed as an encouraging sign by First Nations politicians.
"Minister Strahl's announcement yesterday afternoon underscores the importance of First Nations University," Guy Lonechild, chief of the Federation of Saskatchewan Indian Nations, which owns FNUC, said Friday in a news release. "We are very pleased to hear this news."
Lonechild also noted that "significant improvements in governance, accountability and financial stewardship" had taken place at FNUC.
The chief added he still wants the federal government to restore another $4.2 million in annual funding for FNUC.
The school, with a main campus in Regina, had 820 students enrolled in courses for 2009-2010.
Its future was thrown into turmoil in January when allegations of financial irregularities arose.
In February, claiming that accountability issues had not been resolved to their satisfaction, the federal and provincial governments announced they were cutting funds to the school.
A flurry of dismissals and some restructuring of the institution followed.