The Carney government has announced plans to cut the number of permanent and temporary resident admissions into Canada over the next three years amid concerns over the impacts on social and housing infrastructure.
The changes were contained in the 2025 federal budget unveiled in Ottawa on Tuesday.
“Canada’s new government recognizes that this system is no longer sustainable, and we are determined to make it so, for everyone who lives in and comes to this country,” officials wrote.
“We are taking back control over the immigration system and putting Canada on a trajectory to bring immigration back to sustainable levels.”
Between 2026 and 2028, officials are targeting 380,000 permanent resident admissions for each year – down from 395,000 in 2025.
There will be a large cut in temporary resident admissions, which would see a target of 385,000 in 2026 and 370,000 in 2027 and 2028. In 2025, there were approximately 673,650 temporary resident admissions.
The move is expected to result in the loss of more than $168 million over four years starting in the 2026-2027 fiscal year. Officials said most of that is due to a loss of resident application fees.
Coinciding with the announcement, the budget proposed a two-year program that would recognize eligible refugees (referred to as “protected persons”) in Canada as permanent residents. The program is estimated to cost more than $120 million over four years to process the applications.
“This practical step is a reflection of the fact that the vast majority of these people cannot return to the country of their origin,” officials wrote.
“It will also ensure that those in genuine need of Canada’s protection have their permanent status recognized, accelerating their full integration into the Canadian society and their path to citizenship.”
When it comes to the temporary foreign workers program, which occasionally has been a point of controversy due to its overuse by major corporations, there were no major changes announced in the budget. Officials said the 2026-2028 immigration levels plan will “consider industries and sectors impacted by tariffs and the unique needs of rural and remote communities,” but no other details were provided. They also noted temporary foreign worker arrivals dropped by close to 50 per cent in 2025.
