Canada’s New Immigration Policy: Two Years In

In 2024, the federal government introduced significant changes to its immigration policy, reducing the cap on international study permits and tightening eligibility for temporary foreign workers and permanent residents. Immigration, Refugees and Citizenship Canada (IRCC) cited increasing pressures on housing markets, healthcare, and infrastructure as the rationale behind its new measures, along with a goal to improve system integrity.

Tightened policies introduced

According to Canadian Immigrant, a multimedia platform established to support immigrants to Canada, just under 78,000 new study permits were granted in 2025, which is a huge decrease (64%) from the previous year and the lowest number in a decade, even lower than it was at the height of the pandemic. Public colleges have been hit hard because they have relied heavily on the high fees paid by international students whose numbers plummeted by a whopping 75% over the last two years. Consequently, there have been severe program reductions, campus closures, and job losses. Indeed, more than 5,000 postsecondary education jobs were cut, 70% in Ontario (see data from Academic Jobs).

Miscalculations by IRCC

• The IRCC bungled its projections. In 2024, it approved less than half of its target, while in 2025 it finished the year by approving just under 78,000, which is only 30% of its forecast (Auditor General Reports).
• Also embarrassing for the department is that it fell short on its integrity targets by mismanaging fraudulent applications, as outlined in the Auditor General’s report tabled on March 23, 2026.
• Plus, the department sowed confusion and discontent by flip-flopping on whether master’s and doctoral students fall under the cap. This naturally led to a drop in graduate school applications. 
• Post Graduate Work Permit (PGWP) amendments were not clearly stated, so surprised students have recently sparked protests and media attention.

Sughanda Mahajan, a writer for Moving 2 Canada summarizes IRCC’s behaviour this way

The IRCC appears to have prioritized speed and statements over foresight, introducing measures without fully considering the broader impacts. The result has often been a need to manage the unintended consequences after the fact, rather than anticipating how these changes would ripple through the system. 

Still,the Canadian government keeps hammering away at the industry. According to a recent article in the Canadian Magazine of Immigration, the government has just reduced its immigrant settlement funding by a whopping $98.1 million for the 2026–2027 fiscal year, leaving Ontario with a 17.3% spending cut. The programs now at risk include job counselling, resume workshops, mentorships, orientation, translation, and other services that help people integrate into society. Can you imagine how hard it would be to set up a life for you and your family in a new country, a new language, and a new culture without these services? An agency director quoted in the Toronto Star described the cut as a “one-two punch” given that their funding had already been slashed.¹

Adding more salt to the wound, the government has instituted even more restrictions, the effects of which are yet to play out:

• Language programs will now stop abruptly at CLB level 4, which will drastically hinder students’ confidence and proficiency before they integrate into society or take further studies. 
• According to the Toronto Star article above, current and new economic-class permanent immigrants are now required to access settlement programs within a set period (six years as of April 1, 2026, then down to five years on April 1, 2027). This will impact newcomers who typically postpone accessing settlement centres (caregivers, recent trauma survivors, people with disabilities, those waiting for their credential assessments and individuals who are returning to the workforce after a gap).
• Of particular concern is Bill C-12, which was passed in March 2026. This bill prevents immigrants from applying for refugee status after they have been in Canada for more than a year and a half. According to Canadian Immigrant, this measure will likely mean that “tens of thousands” will have their claims denied. In addition, the bill gives the government power to “cancel or suspend immigration documents and even entire application categories.” The magnitude of this power is obvious and can have far-reaching consequences for immigrants should the government decide to use it.

It is certainly disappointing that the IRCC didn’t have its numbers right when it launched its new immigration measures in 2024. In essence, it didn’t have to cut and tighten as much as it did to meet its targets, which means that the damage to our industry didn’t have to be nearly as devastating. And yet, instead of correcting upwards, the government continues to set lower caps on students, temporary workers, and permanent residents. In fact, it has decided to decrease the cap on new international students to 155,000 for 2026 (read more here).

While some reports suggest that Canada has eased pressures on housing, we must ask at what cost? It’s just too early to see the very real ramifications to come. Let’s not forget that international students bring a lot to the table: not only do they make strong economic contributions to this country, but they also bring cultures and languages that shape who we are, who our kids are. I have been proud to teach, work with, and learn from these students. As Canada’s population ages and more international students become disenchanted with their prospects here, there will be a labour and skill gap unlike anything Canada has experienced in recent years.

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¹ Nicholas Keung, “Canada will slash millions in spending meant to help immigrants. Here’s how hard Ontario is being hit,” Toronto Star, February 24, 2026, https://www.thestar.com/news/canada/ottawa-cuts-98m-in-funding-for-immigrant-settlement/article_a620839c-614a-4512-8ccf-f14efc658871.html.