Indian Affairs and Northern Development Minister Chuck Strahl said First Nations University missed many deadlines and failed to make needed reforms. (CBC)

Millions of federal dollars being cut from First Nations University of Canada will be redirected to help First Nations students elsewhere, Indian Affairs and Northern Development Minister Chuck Strahl says.

Strahl was speaking to reporters in Ottawa on Tuesday, a day after he announced his department would stop giving money to the Saskatchewan-based university as of April 1. Last year, Indian Affairs gave the university a $7.2 million operating grant.

The Saskatchewan government, which has been giving the school about $5.2 million a year, announced last week that it would stop the funding.

Strahl said the university has serious problems related to governance and finances, and they weren't being addressed, despite constant appeals from both levels of government.

First Nations University of Canada has its main campus in Regina and satellite campuses in Saskatoon and Prince Albert. (CBC)

"Finally, we had to take the step that we did, which is to decide to focus on student needs and look after the students in the shorter term … and then reinvest that money we had budgeted for the First Nations University to make sure it does a better job of meeting the needs of First Nations students."

After the province announced it would cut FNUC funding, the Federation of Saskatchewan Indian Nations, which controls the university, said it would dissolve the board of governors and put some senior administrators on leave.

For years, the university has come under criticism for having a board of governors that's too large and dominated by First Nations chiefs and other politicians.

More reports have alleged misspending at the university at a time when it's struggling to stay out of the red.

Strahl said he was aware of the spending concerns, but the governance problems concerned him most. The federal government tried to tie conditional spending to governance reform, but this didn't work, he said.

"Every deadline came and went many times," he said.

The Federation of Saskatchewan Indian Nations and FNUC students have expressed shock about the funding cuts and were meeting Tuesday to figure out what happens next. They urged both levels of government to reinstate the money.

Nothing Strahl said Tuesday, however, suggested he is considering that option.

Some students have speculated that neighbouring University of Regina might play a larger role in their education. About 900 students attend First Nations University, which has its main campus in Regina and satellite campuses in Saskatoon and Prince Albert.