Immigrant services face uncertain financial future

Community agencies that help newcomers build lives in Canada are warning of program closures and staff layoffs as Ottawa moves to reduce funding for immigrant settlement services.

Federal budget decisions, combined with a directive requiring departments to find significant savings, are shrinking resources once dedicated to language training, employment counselling and integration supports for immigrants and refugees. Service providers say the impact will be felt quickly and deeply, particularly in large urban centres.

A recent survey of nearly 50 immigrant serving organizations across the Greater Toronto Area found that 44 per cent expect to shut down programs and 68 per cent anticipate cutting jobs by 2028 if current funding levels continue. Many of these agencies offer English classes, job search assistance, school registration guidance and help accessing housing and mental health supports.

The funding strain is linked to two policy shifts. Ottawa has lowered temporary immigration targets for 2026 under its broader fiscal plan, meaning fewer newcomers and reduced allocations for settlement programming. At the same time, federal departments have been instructed to identify savings of up to 15 per cent over the next three years, placing additional pressure on immigration and citizenship budgets.

In Toronto, agencies say the consequences are already visible. Debbie Douglas, executive director of the Ontario Council of Agencies Serving Immigrants, said the reductions threaten the stability of frontline services.

“When you cut settlement funding, you are cutting the bridge that allows newcomers to find work, learn English and contribute fully,” she said.

“These programs are not extras. They are foundational to successful integration.”

Municipal leaders are also grappling with the fallout. In Toronto, reduced federal contributions toward refugee shelter costs have contributed to a $107 million budget shortfall, prompting calls for additional support from Ottawa to prevent disruptions.

Beyond Ontario, the impact is national. In Vancouver, an immigrant support centre that has assisted newcomers with employment and integration for more than a decade has announced it will close later this year due to financial constraints.

Advocates argue that scaling back investment in settlement services runs counter to Canada’s economic objectives, particularly as employers continue to report labour shortages in several sectors. They contend that helping newcomers secure stable employment and housing ultimately strengthens communities and public finances.

With the next federal budget cycle approaching, settlement agencies are urging the government to reconsider the depth of the cuts and restore funding to programs they say are essential to Canada’s long term growth and social cohesion.

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