The Liard First Nation in Watson Lake, Yukon, says it's not going to administer a federal income assistance program any longer.
The First Nation will give responsibility for the program back to the Yukon branch of Aboriginal Affairs and Northern Development.
The First Nation cited a lack of funds and onerous rules as reasons.
The program is one of a group of five federal social programs for First Nations citizens that are contracted out by the Aboriginal Affairs.
The department said it's looking into the situation. It said it will work with the First Nation to minimize any impact the change may have on the delivery of the program.