Indian Affairs Minister Chuck Strahl says he is not ready to restore federal funding to the embattled First Nations University of Canada.

Some $7 million in federal grants to the Regina-based school are set to end April 1. In February, the federal government — following on the heels of Saskatchewan — announced it was pulling FNUC's grants because of concerns about how the university was run.

Since then, changes have been made, including the installation of a new board of governors and the firing of FNUC president Charles Pratt.

On Tuesday, provincial government officials signed a memorandum of understanding allowing for a temporary administrative reorganization of FNUC under the auspices of the University of Regina.

But in Ottawa on Wednesday, Strahl told reporters the fate of federal funding for FNUC hasn't changed.

"We have to see the institutional reform to see if it's possible to salvage the good parts of FNU going forward," Strahl said. "We'll be interested to see the plans."

Strahl suggested he had good reason for skepticism, noting that FNUC's financial and administrative problems have been known for several years, and he has heard promises of reform in the past.

"I've been told that now," he said of the promises. "And our government's been told that for five years. And it stretches back into the Liberal government era."

Strahl said the federal government was not part of the memorandum signed Tuesday that restores $5.2 million in provincial money to FNUC.

Ottawa might be open to a form of financial support for First Nations education that does not involve grants to FNUC, he said. His focus now is on the needs of the 820 students enrolled at FNUC at its main campus in Regina and satellite classrooms in Saskatoon and Prince Albert.

"We've told the students and we've told the First Nation University that I'm most concerned about this academic year for the students," Strahl said.

He suggested officials from FNUC could apply for support under an existing federal program for First Nations students called Indian Student Support Programming.

"I urged them to apply under the Indian Student Support Programming because that is programming that's available to all post-secondary institutions," Strahl said. "We're examining those applications."