Indigenous communities will share more than $300 million to support residential school survivors and fund programs to search for unmarked graves.
The federal government is investing $83 million to help communities with conducting searches at former sites.
Ottawa is also providing an additional $107 million for mental health services to help with trauma caused by the institutions.
Another $100 million will go toward repurposing or tearing down the old schools.
Meanwhile, a national monument will be built in Ottawa to honour the survivors and victims of the residential school system.