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The partnership with the churches remained in place until 1969 and, although most of the schools had closed by the 1980s, the last federally supported residential schools remained in operation until the late 1990s.

In the 1980s, various members of Canadian society began to undertake a reassessment of the residential school experience. Starting in 1986, Canadian churches began to issue apologies for attempting to impose European culture and values on Aboriginal people. Apologies specific to the residential schools were to follow in the 1990s. Former students began to speak out publicly about their experiences, leading to both criminal charges against some sexual abusers and the launching of class-action lawsuits against the churches and the federal government. The cases were eventually resolved in the Indian Residential Schools Settlement Agreement, the largest class-action settlement in Canadian history, which was reached in 2006 and came into effect in 2007.

That agreement provided for a payment to all former students who resided in federally supported residential schools, additional compensation for those who suffered serious personal harm, a contribution to the Aboriginal Healing Foundation, support for