The Trudeau government and WE Charity are ending a controversial partnership that would have seen the city responsible for distributing nearly $1-billion in federal grants to students this summer.

A statement from the government says this was a ”mutually agreed upon decision.”

”The Government of Canada and WE Charity  will work together to ensure that the volunteers who have applied and been placed won’t be adversely affected.  WE Charity has also decided to return any funds that had already been received,” said Diversity, Inclusion and Youth Minister Bardish Chagger.

”Our government’s objective remains to connect the skills and abilities of young people with service opportunities to help help their communities.”

In a statement, WE charity acknowledges criticism of its involvement ”has not abated.”

”Our concern is that to continue in this way, the program itself will begin to suffer — and as a consequence, opportunities for students might be negatively affected.  Not only would that be unwelcome, it is unnecessary.”

The decision to give the work to an organization with ties to the prime minister’s family was criticized by some in the charitable sector and Opposition Conservatives.

Justin Trudeau and mother Margaret have appeared at a number of WE Day events while the prime minister’s wife, Sophie Gregoire Trudeau, hosts the podcast ”WE Well-being” for the group.

Trudeau defended the partnership saying WE was the only group with a network capable of distributing that kind of money, something the Opposition Tories say is not true.