Canada has long been recognized as one of the most welcoming countries for newcomers, and with the newly announced Immigration Budget for 2026-2028, the government is taking a more balanced and strategic approach to growth. This plan focuses on stability, sustainability, and smarter integration of both temporary and permanent residents into the Canadian economy and society.
Let’s break down what this new plan means for immigrants, workers, and Canada’s future.
A Stable Plan for Permanent Residency (2026-2028)
Under the new Immigration Levels Plan, Canada will freeze permanent resident admissions at 380,000 per year from 2026 to 2028.
This steady target reflects Canada’s goal to maintain a sustainable pace of immigration ensuring newcomers are well supported while still contributing to economic and demographic growth. It’s a signal that the government values stability over rapid expansion, giving provinces, territories, and communities time to strengthen housing, healthcare, and labour market capacities.
A Gradual Reduction in Temporary Resident Admissions
Canada has seen record numbers of temporary residents in recent years international students, temporary foreign workers, and visitors. To better balance population growth with available resources, the new plan reduces temporary resident admissions from 673,650 in 2025 to 385,000 in 2026 and 370,000 in 2027-2028.
This gradual reduction aims to ensure that newcomers arriving temporarily have better access to housing, community support, and transition pathways to permanent residency when eligible.
A One-Time Initiative for Protected Persons
In a humanitarian move, the government is launching a one-time initiative to recognize eligible Protected Persons in Canada as permanent residents over the next two years. It ensures that the individual is genuinely in need of Canada’s protection.
This policy ensures that the individual is genuinely in need of Canada’s protection and, they have found safety and stability in Canada.
Pathway for 33,000 Work Permit Holders to PR
Another significant highlight is a one-time measure to transition up to 33,000 work permit holders to permanent residency in 2026 and 2027.
These are workers who have already proven their commitment to Canada. They are contributing to the economy, paying taxes, and filling essential roles in key sectors. This initiative acknowledges their hard work and helps retain skilled talent that Canada needs for continued economic strength.
$97 Million for Foreign Credential Recognition
A major challenge for many newcomers has been getting their foreign credentials recognized in Canada. To address this, $97 million is provided over five years, starting in 2026-27, to Employment and Social Development Canada (ESDC) to create the Foreign Credential Recognition Action Fund.
This fund will work with provinces and territories to make credential recognition more fair, transparent, timely, consistent. The focus will be on healthcare and construction sectors, where skilled workers are urgently needed.
International Talent Attraction Strategy
Canada is also looking beyond its borders to bring in the best and brightest minds. The International Talent Attraction Strategy and Action Plan will ensure that the immigration system is aligned with strategic labour market needs, particularly in innovation, research, and advanced industries.
As part of this effort, the government plans to:
- Enrol over 1,000 highly qualified international researchers through a one-time initiative.
- Provide $133.6 million over three years to attract top international doctoral students and post-doctoral fellows.
- Allocate up to $120 million over 12 years to help universities recruit international assistant professors.
Accelerated Pathway for H1-B Visa Holders
In a forward-looking move, the government will soon launch an accelerated pathway for H1-B visa holders highly skilled professionals currently working in the United States.
Further, for strengthening Canada’s innovation ecosystem and addressing critical labour shortages, this pathway will help attract top talent in healthcare, research, technology, and advanced industries,
The Road Ahead
Canada’s 2026-2028 Immigration Budget isn’t just about numbers, it’s about strategic growth, inclusion, and sustainability.
By balancing temporary and permanent immigration, investing in credential recognition, and opening doors for international talent, Canada continues to shape an immigration system that benefits both newcomers and the nation as a whole.
For individuals and families dreaming of building their future in Canada, this plan represents a more structured, opportunity-rich environment.
The experts at Doherty Fultz Immigration can help you understand what these new changes mean for your unique case.
