In 2017, Correctional Service Canada (CSC) strengthened the Section 81 funding arrangement to better support their operations and respond to the needs of Indigenous communities and organizations managing those Healing Lodges. The new funding formula provides fixed and variable payments that will equal to the negotiated daily rate. The fixed cost which is normally a 60% of the negotiated daily rate is paid whether an offender occupies a bed or not. This allows the Healing Lodge to fund all its fixed recurring financial obligations of managing a facility. The variable cost which is normally the remaining 40% of the negotiated daily rate is paid when a bed is occupied by an offender. This new funding formula which has been deemed fair and respectful by agreement holders, applies to all existing and new Section 81 agreements. It will allow Indigenous agreement holders to have access to funds that will ensure the effective operations of their Healing Lodges including adequately responding to the needs of Indigenous men and women offenders in their care and custody.