Canada will slash millions in spending meant to help immigrants. Here’s how hard Ontario is being hit

As expected given decline in overall numbers. Odd that services will be restricted to economic immigrants given that they are largely selected on the basis of higher levels of human capital and thus arguably in less need than other categories:

The federal government is going to slash its immigrant settlement funding by $98.1 million this year, including a 17.3 per cent reduction for organizations that support newcomers in Ontario, the Star has learned.

The across-the-board funding reductions outside Quebec are expected to affect all services, including employment counselling, information and orientation, translation help for appointments and other supports to assist newcomer integration. Newcomer women and caregivers, survivors of trauma, people with disabilities and others who are likely to delay language and other programs are feared to be disproportionately affected, though refugee services won’t be affected by the cuts.

The 9.5 per cent overall cut for the 2026-2027 fiscal year is in addition to the previously announced spending cuts to end all English classes beyond level 4 of the Canadian Language Benchmark (the government’s language assessment system with levels from 1 to 12) by September 2026. New eligibility will also take effect on April 1 to restrict access to services for economic immigrants.

Immigrant service agencies in Ontario will see funding reduced to $424.6 million from $513.6 million in 2025-2026. The hardest hit province is British Columbia, which will see a 25 per cent reduction in settlement funding, followed by Nova Scotia (23.3 per cent) and Prince Edward Island (22 per cent).

“The department recognizes the challenging impact these funding decisions will have on service provider organizations, and we will strive to provide transparent and timely information, as well as to respond to any concerns,” assistant deputy immigration minister Catherine Scott said in a Feb. 13 email to service agencies. “We can jointly ensure service continuity for clients.”

All funded agencies are expected to be contacted by the department before the end of the week on how their individual programs will be affected, as resources will also be reallocated to support organizations that serve French-speaking clients as a result of Ottawa’s priority to boost francophone immigration outside Quebec. 

The news has sent another shock wave to service providers, who had already had federal funding for the sector reduced from about $1.17B in 2024-25 to $1.12B in the current fiscal year.

“It’s a one-two punch,” said the executive director of one multiple service agency, who asked not to be identified for fear of repercussions to his organization by the department….

Source: Canada will slash millions in spending meant to help immigrants. Here’s how hard Ontario is being hit