The federal government and First Nations leaders have struck a historic $40 billion agreement-in-principle to compensate young people harmed by Canada's discriminatory child welfare system while reforming the system that tore First Nations children from their communities for decades, according to CBC Canada.

The non-binding agreement sets aside $20 billion for compensation and $20 billion for long-term reform of the on-reserve child welfare system. If approved, the financial settlement would be the largest of its kind in Canadian history. The parties have until March 31 to finalize the agreement.

It's not clear yet when payments will be made or exactly how much each recipient will be paid.

The Canadian Human Rights Tribunal ruled in 2016 that $40,000 should be paid to each First Nations child unnecessarily placed in foster care.