CIMM - Overview of the 2025 Budget - December 4, 2025

Key Messages

• For the first time, Budget 2025 announced the government’s 2026–2028 Immigration Levels Plan, underscoring its commitment to returning immigration rates to sustainable levels. The plan sets clear targets and ensures Canada meets its economic and social objectives.
• Budget 2025 included two special measures to strengthen pathways towards permanent residency: recognizing eligible Protected Persons and transitioning up to 33,000 work permit holders.
• Budget 2025 reinforces Canada’s position as a top destination for global talent, introducing an accelerated pathway for H1-B visa holders and launching the International Talent Attraction Strategy, with major investments to recruit over a thousand world-class researchers to Canada.

2026–2028 Immigration Levels Plan

• Budget 2025 outlines a Levels Plan designed to:
  • Stabilize permanent resident admission targets at 380,000 per year for three years while increasing the share of economic migrants to 64% by 2027.
  • Reduce the target for new temporary resident admissions to 385,000 in 2026, and 370,000 in 2027 and 2028.
    • The fiscal cost of this measure is $168.2M over four years, starting in 2026–2027, and $35.7M ongoing. These costs primarily represent the net loss in fee revenue, driven by fewer temporary resident admissions.
• Budget 2025 also included funds for two one-time measures:
  • An initiative to recognize eligible Protected Persons in Canada as permanent residents over the next two years.
    • The fiscal cost of this measure is $120.4M over four years, starting in 2026–2027. This represents the costs for Immigration, Refugees and Citizenship Canada (IRCC) and the Canada Border Services Agency (CBSA) to process the additional applications, which are partially offset by higher fee revenues.
  • A measure to accelerate the transition of up to 33,000 work permit holders to permanent residents over the next two years.
    • The fiscal cost of this measure is $19.4M over four years, starting in 2026–2027 for IRCC and other departments to process the additional applications, which are partially offset by higher fee revenues.
• No funding is being sought in the 2025–2026 Supplementary Estimates (B) for these items.

If pressed on funding related to the Immigration Levels Plan:

• With the decrease in immigration levels since 2025, IRCC is seeing funding reference levels decreasing as well. The Department continues to examine the impact of all the Budget decisions.

International Talent Attraction Strategy and Action Plan

• Budget 2025 introduces the International Talent Attraction Strategy and Action Plan, which will position the immigration system to meet strategic labour market needs, while respecting immigration targets to ensure a sustainable immigration rate. More details will be made public on this Strategy throughout 2026.
• The Budget proposes a targeted, one-time initiative to recruit over 1,000 highly qualified international researchers to Canada and provides funding for the Natural Sciences and Engineering Research Council, Social Sciences and Humanities Research Council, and Canadian Institutes of Health Research as follows:
  • $1B over 13 years to launch an accelerated research Chairs initiative to recruit exceptional international researchers to Canadian universities;
  • $133.6M over three years to enable top international doctoral students and post-doctoral fellows to relocate to Canada; and
  • $120M over 12 years to support universities’ recruitment of international assistant professors, as appropriate.
• The government will also launch an accelerated pathway for H1-B visa holders to strengthen Canada’s innovation ecosystem and address labour shortages, by attracting top talent in healthcare, research, advanced industries and other key sectors. The Department is working on this initiative and more information will come in due time.
• IRCC is not seeking funding in the 2025–2026 Supplementary Estimates (B) for these items.

Comprehensive Expenditure Review

• Budget 2025 also announced targeted adjustments to IRCC programs, including:
  • Adjustments to the Interim Housing Assistance Program commensurate with the decline in asylum claimants.
  • Transfer of responsibility for employer-focused compliance inspections under the International Mobility Program to Employment and Social Development Canada (ESDC).
  • Readjustment to the Settlement Program to implement limits to program eligibility for economic immigrants.
  • Introduction of a modest co-pay model to the Interim Federal Health Program for supplemental health products or services (e.g., prescriptions, dental care).
  • Streamlining of our internal services, using technology to improve productivity; reducing the number of external consultants and investing in internal capacity; and reevaluating human resources requirements, including management layers.
• These items do not affect the 2025–2026 fiscal year, therefore they are not reflected in the 2025–2026 Supplementary Estimates (B).

If pressed on spending reductions this fiscal year:

• IRCC has adjusted its spending, including with the workforce adjustments that started in early 2025, prior to the Comprehensive Expenditure Review. These adjustments are in consideration of the 2025–2027 Immigration Levels Plan decreases and the phasing down of work and associated temporary funding for various initiatives, including the resettlement of Afghan nationals and measures related to the Canada–Ukraine Authorization for Emergency Travel.

Other Funding for IRCC and Announcements that would Implicate IRCC Business

• Budget announced $100M over two years for the Department of Canadian Heritage, Royal Canadian Mounted Police, Canada Border Services Agency, Canadian Food Inspection Agency, Canadian Air Transport Security Authority, and IRCC for their activities in support of the FIFA Men’s World Cup 2026.
  • IRCC is not seeking funding in the 2025–2026 Supplementary Estimates (B) for this item, but anticipates seeking funding via a future Estimates.
• The Immigration and Refugee Board of Canada will receive $66M over two years to improve asylum claim processing efficiency.
• The government noted in the Budget that it strongly supports Bill C-12, the Strengthening Canada’s Immigration System and Borders Act, which includes important elements for IRCC’s program integrity such as authorities for mass cancellations, certain asylum measures, as well as expanded information sharing.
• ESDC will launch a Foreign Credential Recognition Action Fund by redirecting $97M over five years from existing resources.
• Artificial intelligence/Digitalization: The government announced that it will create an Office of Digital Transformation to identify, implement and scale technology solutions across the federal government.
• Treasury Board Secretariat will receive $7.7M to implement a new Buy Canadian Policy that will require federal agencies and Crown corporations to procure from domestic suppliers as the norm. When domestic suppliers are not available, purchases will be required to include Canadian content or to be sourced from trusted partners.
• The government is also investing in housing, with $13.5B over five years for Build Canada Homes, including $1B for transitional and supportive housing.

Workforce and Workplace

• The government has committed to bring public service growth in line with forecasted Canadian population growth, in part, using workforce adjustment and attrition. This is expected to result in a reduction of 40,000 employees, from 368,000 in 2023–2024 to 330,000 in 2028–2029.
• “Spending less on government and more on Canada”: The government has committed to reducing the compound annual growth rate for direct program expenses down over the next four years, from 8.1% from 2014–2015 to 2024–2025 to 0.5% by 2029–2030.
• The government will reduce expenses on management and other consulting services by 20% in three years.
• Save federal employees up to $1,100 in annual pension contributions, while maintaining their pension benefit levels and aligning pension benefits with the Consumer Price Index.

Policy Actions Taken Since the 2024 Fall Economic Statement

• The Budget also noted recent decisions taken by the government since the 2024 Fall Economic Statement:

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