The Canadian government has unveiled plans to reduce the number of temporary residents by as much as one-third while introducing a new fast-track pathway for U.S.-based H-1B visa holders and other highly skilled professionals to obtain permanent residency.
The measures, announced under Budget 2025 and the 2026–2028 Immigration Levels Plan, mark a shift from population-driven growth to skills-based immigration as Canada faces mounting pressure from housing shortages, strained healthcare services, and growing public concern over record population increases.
As part of the reforms, up to 33,000 H-1B visa holders and other skilled professionals will be able to transition directly to Canadian permanent residency by 2027. Officials say the initiative is aimed at bolstering the country’s innovation and research sectors while taking advantage of restrictive immigration trends in the United States.
“We’ve exceeded our capacity in recent years,” said Finance Minister François-Philippe Champagne, presenting the plan in Parliament. “Our focus now is building a stronger, more resilient Canadian economy through balance, sustainability, and skills-driven growth.”
While overall permanent immigration levels will remain steady at 380,000 per year through 2028, the composition will shift. Skilled workers, entrepreneurs, and other economic-class immigrants will account for 64% of total admissions, up from 59%, underscoring Ottawa’s push to better align immigration policy with labor market needs.
The policy overhaul comes amid a notable shift in public sentiment. A recent Environics Institute poll found that 56% of Canadians now believe Canada temporary visa immigration targets are too high—a sharp departure from the broadly positive views that dominated much of the past decade.