Quarterly Financial Report for the quarter ended September 30, 2025

1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by Treasury Board. This quarterly report should be read in conjunction with the 2025-26 Main Estimates Part II and the 2024-25 Quarterly Financial Report for the quarter ended September 30, 2024.

A summary description of Immigration, Refugees and Citizenship Canada (IRCC) programs may be found in Part II of the Main Estimates and the 2025-26 Departmental Plan.

1.1 Basis of Presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Department’s spending authorities granted by Parliament and those used by the Department consistent with the Main Estimates for the 2025-26 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

When Parliament is dissolved for the purposes of a general election, section 30 of the Financial Administration Act authorizes the Governor General, under certain conditions, to issue a special warrant authorizing the Government to withdraw funds from the Consolidated Revenue Fund. A special warrant is deemed to be an appropriation for the fiscal year in which it is issued.

The Department uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the Departmental Results Report process. However, the spending authorities voted by Parliament remain on an expenditure basis.

1.2 IRCC’s Financial Framework

In order to deliver on its mandate, IRCC is funded through three budgetary mechanisms:

  1. Appropriations
    • Voted appropriations:
      • Vote 1 – Operating Expenditures;
      • Vote 5 – Capital Expenditures; and
      • Vote 10 – Grants and Contributions (G&C)
    • Special Purpose Allotments including the Interim Federal Health Program and the Immigration and Refugee Protection Act’s Division 9.
    • Budgetary statutory authorities is comprised of Employee Benefit Plan.
  2. Vote-Netted Revenue (VNR under Vote 1)
    • International Experience Canada (IEC) Program
  3. Revolving Fund
    • Statutory authorities also includes the Passport Program Revolving Fund.

Additionally, IRCC’s non-budgetary authorities consist of Immigration loans, mainly to resettled refugees to help defray the cost of their travel to Canada and to their final destination within Canada.

2. Highlights of fiscal quarter and fiscal year-to-date (YTD) results

Following the dissolution of Parliament on March 23, 2025, ahead of a general election, no appropriation acts had been passed for the new fiscal year. To ensure the continuity of government operations, the Governor General issued two Special Warrants – one on April 1 and another one on May 2, authorizing interim funding until a new Parliament could be formed and the next appropriation act received royal assent. The 2025-26 Main Estimates were subsequently tabled in the House of Commons on May 27, 2025 and full supply was granted on June 27, 2025.

As of September 30, 2025, IRCC’s total authorities include full supply for the 2025-26 Main Estimates. Key investments include funding to continue delivering essential health care service to asylum seekers through the Interim Federal Health Program, to compensate provinces and municipalities for the interim housing of asylum claimants under the Interim Housing Assistance Program (IHAP), to advance the Digital Platform Modernization; and to sustain and expand the department’s biometric collection capabilities.

Total authorities to date also include funding from the 2024-25 Operating and Capital Budget Carry Forward.

The department’s financial outlook over the next fiscal years, starting in 2025-26, signals substantial shifts in funding allocations. Multiple sources of temporary funding that have supported the department in recent years are now coming to an end, including allocations for the Afghanistan Resettlement Commitment, the Canada-Ukraine Authorization for Emergency Travel (CUAET) and the drawing down of temporary accommodation provided to asylum claimants. In addition, Budget 2023 directed federal government departments to refocus government spending, including spending on travel and professional services. In response, IRCC committed to reducing its operating expenditures by prioritizing modernization to minimize impacts on clients. This represents a reduction of $103.1M in 2025-26, $5.6M more than the $97.5 million reduction from last year. Finally, due to the reduced immigration targets outlined in the 2025-2027 Immigration Levels Plan, funding is expected to decline across multiple years, starting in 2025-26.

These reductions will require adjustments to operational planning and service delivery strategies to maintain alignment with departmental priorities. IRCC will continue to enhance efficiency and productivity through ongoing modernization efforts, the implementation of new policies, and infrastructure investments. These investments aim to optimize operations and strengthen the department’s ability to achieve results both now and in the future.

A. Significant changes to authorities

The following table shows the total budget available for use by IRCC. Only authorities available for use and granted by Parliament as at September 30, 2025 are included.

Table 1: Significant changes to Authorities (in thousands of dollars)
(in thousands of dollars) Fiscal Year 2025-26 Fiscal Year 2024-25 Variance
Total available for use for the year ending March 31, 2026Table note 1 Total available for use for the year ending March 31, 2025Table note 1 $ %
Vote 1 - Operating Expenditures 2,294,281 2,273,582 20,699 1%
Vote 5 - Capital Expenditures 9,053 16,401 (7,348) -45%
Vote 10 - Grants and Contributions 2,777,304 2,769,329 7,975 0%
Budgetary Statutory Authorities 181,361 200,533 (19,173) -10%
Contributions to Employee Benefit Plans 146,600 141,616 4,984 4%
Passport Program Revolving Fund 20,643 41,098 (20,455) -50%
Other Budgetary Statutory Authorities 14,118 17,819 (3,701) -21%
Total Budgetary AuthoritiesTable note 2 5,262,000 5,259,845 2,155 0%

IRCC’s total budgetary authorities available for use in fiscal year 2025-26 increased by approximately $2.2 million (0.04%) compared to the same quarter in 2024-25.

i. Authorities for Vote 1 – Operating Expenditures

The Department’s Vote 1 – Operating Expenditures authorities increased by $20.7 million (1%), which is mainly explained by the following items:

Increases:

Decreases:

ii. Authorities for Vote 5 – Capital Expenditures

The Department’s Vote 5 – Capital Expenditures authorities decreased by $7.3 million (45%), which is mainly explained by the following items:

Decreases:

iii. Authorities for Vote 10 – Grants and Contributions (G&C)

The Department’s Vote 10 – Grants and Contributions authorities increased by $8.0 million (0%), primarily attributable to the following changes:

Increases:

Decreases:

iv. Budgetary Statutory Authorities

The 2025-26 statutory authority level in the second quarter decreased by $19.2 million (10%) compared to 2024-25, primarily attributable to the following changes:

Decreases:

Increases:

B. Significant changes to departmental budgetary expenditures by standard object

Quarter over quarter analysis

The following table shows IRCC’s budgetary expenditures and revenues netted against expenditures for the period, and their comparison with the same period last fiscal year.

Table 2: Significant changes to budgetary expenditure by standard object (in thousands of dollars)
(in thousands of dollars) Fiscal Year 2025-26 Fiscal Year 2024-25 Variance
Expended during the quarter ended September 30, 2025 Expended during the quarter ended September 30, 2024 $ %
Personnel 297,377 324,220 (26,843) -8%
Transportation and Communications 13,224 19,515 (6,291) -32%
Information 888 772 116 15%
Professional and Special Services 364,966 418,375 (53,409) -13%
Rentals 10,416 81,583 (71,167) -87%
Repair and Maintenance 1,669 412 1,257 305%
Utilities, Materials and Supplies 11,393 19,625 (8,232) -42%
Acquisition of Machinery and Equipment 529 995 (466) -47%
Transfer Payments 866,351 749,760 116,591 16%
Other Subsidies and Payments 5,905 20,616 (14,711) -71%
Total Gross Budgetary Expenditures 1,572,718 1,635,873 (63,154) -4%
Less Revenues Netted against Expenditures
Passport Program 132,547 167,796 (35,249) -21%
International Experience Canada 1,772 2,964 (1,192) -40%
Total Net Budgetary Expenditures 1,438,399 1,465,113 (26,713) -2%

Note: Numbers may not add up due to rounding.

The total gross budgetary expenditures during the quarter ending September 30, 2025 decreased by $63.2 million (4%) compared to the same quarter in 2024-25, which is mainly explained as follows:

  1. Salaries and Employment Benefits have decreased by $26.8 million (8%) which is attributable to a reduction in temporary funding for various initiatives, including the resettlement of Afghan nationals; the decrease of funding following the decision to reduce immigration levels as part of the 2025-2027 Immigration Levels Plan; as well as the department strategy to reduce spending following the Budget 2023 announcement.
  2. Transport and Communications expenditures have decreased by $6.3M (32%) primarily due to reduced courier services stemming from a lower volume of travel documents seen this quarter, compared to the second quarter 2024-25; as well as a reduction in travel expenditures following the Budget 2023 announcement on Refocusing Government Spending.
  3. Professional and Special Services expenditures have decreased by $53.4 million (13%) which is attributed to a decrease in payments to Employee and Social Development Canada (ESDC) for passport delivery services due to the lower projected volumes for fiscal year 2025-26 and credits received during Q2 related to Q1 expenses; a decrease in temporary accommodation costs for asylum seekers associated with the Department’s draw down operations; a decrease in payments made to Shared Services Canada due to the timing of invoices; a decrease in operational costs to support third party Visa Application Centres (VAC) due to a significant decline in Temporary Resident enrollments; and reduction in the use of Controlled forms. These decreases are partially offset by an increase in reimbursements paid to Interim Federal Health Program (IFHP) health-care providers as a result of a growing total eligible beneficiary population, increased overall program utilization and a higher first-year utilization rate among asylum seekers; as well as an increase in payments made to the Department of Justice for legal services due to the timing of invoices.
  4. Rentals expenditures have decreased by $71.2 million (87%) which is attributed to a decrease in the average temporary accommodation cost per asylum claimant, and a decrease in the overall number of rooms due to the Department’s drawn down operation scheduled to end on September 30th, 2025. The decrease also reflects lower expenditures in the second quarter, due to software license payments that were accounted for in Q2 2024–25.
  5. Utilities, Materials and Supplies expenditures have decreased by $8.2 million (42%) which is attributable to a decrease of meal provisions due to the number of asylum claimants dropping. This is part of the significant adjustments made to the Interim Lodging Services Program to reflect the reduced capacity, as the program was winding down.The decrease is also due to an invoice timing difference related to passport materials.
  6. Transfer Payments have increased by $116.6 million (16%) is mainly explained by an increase to the base amount of the Canada-Quebec Accord on Immigration as well as the timing of the quarterly payments to Quebec. The increase is partially offset by a decrease in spending under the Interim Housing Assistance Program due to timing of payments.
  7. Other Subsidies and Payments have decreased by $14.7 million (71%) which is mainly attributed to a decrease in refunds related to Service Fees Act remissions compared to last fiscal year as a result of the decision to pause remissions, with only complaint-based payments being issued.

Through the Passport Program and International Experience Canada, IRCC generated $132.5 million and $1.8 million respectively in re-spendable revenues in the second quarter of 2025-26. Overall, this resulted in net budgetary expenditures of $1,438.4 million as of September 30, 2025, compared to $1,465.1 million in the same quarter of 2024-25.

  1. Passport re-spendable revenues have decreased by $35.2 million (21%) compared to the same quarter of the previous fiscal year, mainly due to a decline in the demand for passport services. This is largely attributable to the impact of the economic outlook and impacts of tariffs where demand since January 2025 has significantly decreased.
  2. International Experience Canada revenues have decreased by $1.2 million (40%) compared to the same quarter in the previous fiscal year as a result of a decrease in the number of participants in the Program seen this quarter, as well as the absence of quota adjustment between countries during the 2025 season.

Cumulative analysis

The following table shows IRCC’s year-to date budgetary expenditures and revenues netted against expenditures, and their comparison with the same period last fiscal year.

Table 3: Significant changes to budgetary expenditure by standard object (in thousands of dollars)
(in thousands of dollars) Fiscal Year 2025-26 Fiscal Year 2024-25 Variance
Year-to-date used at quarter-end Year-to-date used at quarter-end $ %
Personnel 596,706 641,460 (44,754) -7%
Transportation and Communications 22,449 38,180 (15,731) -41%
Information 1,791 2,248 (457) -20%
Professional and Special Services 671,178 689,507 (18,329) -3%
Rentals 29,568 163,588 (134,020) -82%
Repair and Maintenance 1,722 512 1,210 236%
Utilities, Materials and Supplies 27,956 33,510 (5,554) -17%
Acquisition of Machinery and Equipment 6,400 1,995 4,405 221%
Transfer Payments 1,404,934 1,518,799 (113,865) -7%
Other Subsidies and Payments 17,336 44,082 (26,746) -61%
Total Gross Budgetary Expenditures 2,780,040 3,133,881 (353,841) -11%
Less Revenues Netted against Expenditures
Passport Program 268,606 342,905 (74,299) -22%
International Experience Canada 5,273 6,354 (1,081) -17%
Total Net Budgetary Expenditures 2,506,161 2,784,622 (278,461) -10%

Note: Numbers may not add up due to rounding.

IRCC’s year-to-date gross budgetary expenditures totalled $2,780.0 million in 2025-26, compared to $3,133.9 million in 2024-25, representing an decrease of $353.8 million (11%), which is mainly explained by the following:

  1. Salaries and Employment Benefits have decreased by $44.8 million (7%) which is attributable to a reduction in temporary funding for various initiatives, including the resettlement of Afghan nationals; the decrease of funding following the decision to reduce immigration levels as part of the 2025-2027 Immigration Levels Plan; as well as the department strategy to reduce spending following the Budget 2023 announcement.
  2. Transportation and Communications expenditures have decreased by $15.7 million (41%) primarily due to reduced courier services stemming from a lower volume of travel documents; as well as a reduction in travel expenditures following the Budget 2023 announcement on Refocusing Government Spending.
  3. Professional and Special Services expenditures have decreased by $18.3 million (3%) which is attributed to a decrease in payments to Employee and Social Development Canada (ESDC) for domestic passport delivery services due to the lower projected volumes for fiscal year 2025-26; a decrease in temporary accommodation costs for asylum seekers associated with the Department’s draw down operations; a decrease in payments made to Shared Services Canada due to the timing of invoices; and a decrease in operational costs to support third party Visa Application Centres (VAC) due to a significant decline in Temporary Resident enrollments. These decreases are partially offset by an increase in reimbursements paid to Interim Federal Health Program (IFHP) health-care providers as a result of a growing total eligible beneficiary population, increased overall program utilization and a higher first-year utilization rate among asylum seekers.
  4. Rentals expenditures have decreased by $134.0 million (82%) which is attributed to a decrease in the average temporary accommodation cost per asylum claimant, and a decrease in the overall number of rooms due to the Department’s drawn down operation, scheduled to end on September 30, 2025. The decrease also reflects lower expenditures due to software license payments that were accounted for in 2024-25.
  5. Utilities, Materials and Supplies expenditures have decreased by $5.6 million (17%) in 2025-26 which is attributable to a decrease of meal provisions due to the number of asylum claimants dropping. This is part of the significant adjustments made to the Interim Lodging Services Program to reflect the reduced capacity, as the program was winding down.
  6. Acquisition of Machinery and Equipment expenditures have increased by $4.4 million (221%), primarily attributable to the purchase of new laptops which was reported from 2024-25 to 2025-26.
  7. Transfer Payments have decreased by $113.9 million (7%) which is mainly explained by a decrease in spending under the Interim Housing Assistance Program due to the timing of payments as well as decreases in the Settlement program and the Resettlement Assistance Program (RAP) also attributed to the timing of payments but more specifically under the Resettlement Assistance Program Transitional Financial Assistance associated with the Ukraine initiative ending in June 2024. The decrease is partially offset due the increase to the base of the Canada-Quebec Accord on Immigration as well as timing of quarterly payments to Quebec.
  8. Other Subsidies and Payments have decreased by $26.7 million (61%) which is mainly attributed to a decrease in refunds related to Service Fees Act remissions compared to last fiscal year which is due to the decision to pause remissions, with only complaint-based payments being issued.

Through the Passport Program and International Experience Canada, IRCC generated $268.6 million and $5.3 million respectively in re-spendable revenues by the end of the second quarter of 2025-26. Overall, this resulted in net budgetary expenditures of $2,506.2 million as of September 30, 2025, compared to $2,784.6 million as of September 30, 2024.

  1. Passport re-spendable revenues have decreased by $74.3 million (22%) compared to the previous fiscal year mainly due to a decline in the number of passport applications. This is mainly attributable to the impact of the economic outlook and impacts of tariffs where demand since January 2025 has significantly decreased.
  2. International Experience Canada revenues have decreased by $1.1 million (17%) compared to the previous fiscal year as a result of a decrease in the number of participants in the Program, as well as the absence of quota adjustment between countries during the 2025 season.

3. Risks and Uncertainties

IRCC operates in a constantly changing environment. Its strategic directions as well as its policies and operations are influenced by external factors such as emerging domestic and global events, impacts of climate change on migration patterns, Canadian and international economic conditions, shifting social or political contexts, increasing cyber security threats and rapidly shifting migration trends.

Internal or management risks also may present as threats, opportunities or events that may influence the operations and service delivery of the Department. Risks such as system outages or the potential for workplace disruptions have a direct impact on IRCC’s ability to deliver on its mandate and are therefore also factored into the Department’s forward thinking and planning.

Given IRCC’s ongoing efforts to review the scope of its mandate and modernize its organization as well as its operations and service delivery model, the Department will operate in a challenging and complex environment and is expected to continue to maintain its pace and focus on the breadth of challenges, innovations and opportunities it seeks to address.

3.1 Crisis Management

As global displacement becomes more complex, Canada is increasingly called upon to address unique humanitarian situations. Canada may use a range of immigration measures in responding to international crises, including a combination of permanent and temporary pathways and discretionary tools, alongside other Government of Canada responses (e.g., consular support, humanitarian assistance, etc.). As part of IRCC’s approach to well-managed migration, the Department leverages the Crisis Response Framework (CRF) to advance consistent and coherent strategic advice for Government decisions and well-coordinated migration responses to international crises. Building on lessons learned from recent responses, the CRF includes tools to assess and implement migration responses in alignment with annual immigration levels planning, and enable coordination with provinces and territories, partners, and stakeholders. The CRF also helps guide IRCC’s analysis and decision-making related to advice on the provision of supports and services to crisis cohorts where there is an identified need. The Department continues to process applications from clients affected by international crises (including those in Afghanistan, Sudan, and Gaza) and is working to support their settlement in Canada.

It has also become evident that unforeseen crisis events can significantly impact IRCC’s operations, particularly when they occur in regions where our offices and employees are located, complicating response efforts. IRCC also responds to wildfires and other natural disasters in Canada by supporting affected Canadian citizens, permanent residents and temporary residents through special measures and facilitation of foreign emergency services personnel.

Beyond these crises, IRCC manages irregular migration crossings at the Canada-US border, and an increased demand for services such as passports. While addressing these priorities, efforts continue to improve internal processes and systems through change initiatives.

3.2 Litigation and Legal

IRCC operates in a very high volume litigation environment which includes complex, high profile and high impact files. Sound management practices are in place to manage all of these challenges in a consistent and coordinated fashion, including consultations with Justice and other partner departments.

4. Significant Changes in Relation to Operations, Personnel and Programs

Mory Afshar will assume the interim role of executive director and senior general counsel of IRCC Legal Service Unit following the retirement of Caroline Fobes, effective September 12, 2025.

Effective September 29, 2025, Martin Rubenstein will step in Nicole Primeau’s role of IRCC’s chief audit and evaluation officer.

There have been no other significant changes in relation to operations, personnel and programs during the quarter.

Approval by Senior Officials

Approved by:

(Original signed by)
Dr. Harpreet S. Kochhar
Deputy Minister

(Original signed by)
Nathalie Manseau, CPA
Chief Financial Officer

Ottawa, Canada
November 19, 2025

Statement of Authorities
(in thousands of dollars)

(in thousands of dollars) Fiscal Year 2025-26 Fiscal Year 2024-25
Total available for use for the year ending March 31, 2026Table note 1 Used during the quarter ended September 30, 2025 Year-to-date used at quarter-end Total available for use for the year ending March 31, 2025Table note 1 Used during the quarter ended September 30, 2024 Year-to-date used at quarter-end
Vote 1 - Operating Expenditures 2,294,281 539,300 1,010,323 2,273,582 656,826 1,157,915
Vote 5 - Capital Expenditures 9,053 779 1,520 16,401 1,710 3,158
Vote 10 - Grants and Contributions 2,777,304 866,351 1,404,934 2,769,329 749,760 1,518,799
Budgetary Statutory Authorities
Contributions to Employee Benefit Plans 146,600 36,650 73,300 141,616 33,964 67,928
Minister's Salary and Motor Car Allowance 102 34 51 99 24 48
Federal Skilled Worker Fees Returned (Terminated Applications) 4 - 4 13 9 14
Immigrant Investor Program and Entrepreneur Program Fees Returned (Terminated Applications) - - - 3 - 3
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets 20 - - 8 - -
Court Awards 131 12 131 52 17 52
Refunds of Previous Years Revenue 13,780 4,485 13,780 16,650 5,142 16,650
Collection Agency Fees 9 5 9 10 9 10
Payment pursuant to section 24 (1) of the FAA 72 2 72 984 984 984
Passport Program Revolving Fund 20,643 (9,219) 2,037 41,098 16,668 19,061
Total Budgetary Authorities 5,262,000 1,438,399 2,506,161 5,259,845 1,465,113 2,784,622
Non-Budgetary AuthoritiesTable note 2 70,026 5,616Table note 3 4,784 97,348 31,944Table note 3 48,354
Total AuthoritiesTable note 4 5,332,026 1,444,015 2,510,945 5,357,193 1,497,057 2,832,976

Departmental Budgetary Expenditures by Standard Object
(in thousands of dollars)

(in thousands of dollars) Fiscal Year 2025-26 Fiscal Year 2024-25
Planned expenditures for the year ending March 31, 2026 Expended during the quarter ended September 30, 2025 Year-to-date used at quarter-end Planned expenditures for the year ending March 31, 2025 Expended during the quarter ended September 30, 2024 Year-to-date used at quarter-end
Expenditures
Personnel 1,197,349 297,377 596,706 1,259,979 324,220 641,460
Transportation and Communications 75,993 13,224 22,449 116,975 19,515 38,180
Information 10,495 888 1,791 17,985 772 2,248
Professional and Special Services 1,602,678 364,966 671,178 1,475,730 418,375 689,507
Rentals 99,476 10,416 29,568 173,439 81,583 163,588
Repair and Maintenance 2,169 1,669 1,722 2,482 412 512
Utilities, Materials and Supplies 74,813 11,393 27,956 74,275 19,625 33,510
Acquisition of Machinery and Equipment 19,900 529 6,400 29,296 995 1,995
Transfer Payments 2,777,304 866,351 1,404,934 2,456,242 749,760 1,518,799
Other Subsidies and Payments 18,899 5,905 17,336 335,333 20,616 44,082
Total Gross Budgetary Expenditures 5,879,076 1,572,718 2,780,040 5,941,736 1,635,873 3,133,881
Less Revenues Netted against Expenditures
Passport Program 602,827 132,547 268,606 667,642 167,796 342,905
International Experience Canada 14,249 1,722 5,273 14,249 2,964 6,354
Total Net Budgetary Expenditures 5,262,000 1,438,399 2,506,161 5,259,845 1,465,113 2,784,622

Note: Numbers may not add up due to rounding.

Page details

2025-11-28