What major challenge did the provinces face following Confederation?

Following Confederation in 1867, one of the major challenges faced by the provinces was balancing federal and provincial powers. The British North America Act established a federal system that divided responsibilities between the national government and the provinces. This division led to confusion and conflict over the scope and limits of each level of government's authority. Provinces were eager to exercise their newfound powers and manage local affairs, while the federal government sought to maintain a coherent national policy.

Disputes emerged over who had the jurisdiction to legislate on key issues such as education, health, and transportation, among others. This challenge was significant because it required careful negotiation and compromise to ensure that both the provincial and federal governments could operate effectively while addressing the needs of their constituents. Over time, these tensions resulted in legal battles and political debates that helped shape the interpretation of Canadian federalism.

The other choices highlight important issues but are not as directly tied to the immediate structural challenges post-Confederation. Limited governance refers more to the initial lack of authority before Confederation, overwhelming economic growth was not a predominant challenge immediately after Confederation, and the upholding of Indigenous treaties, while crucial, involved complexities that developed over time as provincial and federal roles evolved.