OTTAWA — A significant number of immigrant service organizations in the Greater Toronto Area (GTA) are preparing for potential program closures due to federal funding cuts that commenced in 2024. According to a survey conducted by the United Way Greater Toronto, the Ontario Council of Agencies Serving Immigrants, and the City of Toronto, 44 percent of the 48 newcomer service agencies surveyed anticipate program closures, while 56 percent expect disruptions stemming from decreasing financial resources.
Jessica Kwik, director of the Peel Newcomer Strategy Group, reported that many of these cuts disproportionately affect higher-level language training, which is crucial for newcomers seeking employment. She emphasized that without adequate language training, new immigrants might struggle to secure jobs, leading to income insufficiencies that can jeopardize housing stability. “A lot of the people who come to settlement services are families with children,” Kwik stated, underscoring the vulnerability that could arise from these funding cuts.
The Peel Newcomer Strategy Group plays a vital role in connecting newcomers to organizations that offer settlement services, including language training and assistance with securing employment and housing. Kwik noted that a significant segment of those utilizing settlement services in the GTA are refugees. Federal government data indicates that Ontario has consistently recorded the highest number of asylum claims monthly since April 2023, although Quebec occasionally surpasses it. As of December 31, 2025, there were approximately 300,000 asylum claims pending in the Immigration and Refugee Board's backlog.
The United Way report highlights a three-year, $317.3 million reduction in the overall budget for Immigration, Refugees and Citizenship Canada that began with the 2024 fiscal year. This report does not account for additional cuts announced in the 2025-26 federal budget, as all federal departments have been instructed to identify 15 percent savings over the next three years.
Following the COVID-19 pandemic, the number of new arrivals to Canada increased significantly, with government efforts aimed at welcoming up to 500,000 new permanent residents annually. However, in 2024, the government began to reduce this target, with the latest immigration levels plan calling for 380,000 new permanent residents for the current year. Settlement service organizations receive federal funding based on projected permanent resident arrivals, thereby resulting in smaller budgets when fewer newcomers arrive.
Stephanie Procyk, research director for United Way Greater Toronto, indicated that demand for settlement resources surged by 70 percent since 2020, while the capacity of services only grew by 40 percent, creating a significant strain on available resources. “We’re continuing to kind of crunch that capacity,” Procyk noted, highlighting the potential consequences of impending budget reductions. A troubling statistic from the survey revealed that 68 percent of the surveyed agencies expect layoffs between now and 2028, predicting a total loss of about 310 jobs.
Kwik expressed concern over the potential loss of language trainers, emphasizing the challenge of finding individuals who possess the necessary combination of multilingual skills and a background in social services. She mentioned that it takes time to train professionals in these areas, thus cutting back on the workforce could deplete this unique skill set.
Despite the federal government’s initiatives to reduce newcomer numbers and the anticipated decline in asylum claims, Procyk expects sustained high demand for settlement services in the GTA. She warned that this could lead to increased wait times for newcomers seeking assistance and greater employee burnout as organizations strive to meet the needs of clients without sufficient resources. “When the sector has all these constraints and barriers, it impacts people on the ground in a way that’s really connected to our health and well-being as a country,” Procyk remarked, bringing attention to the broader implications of these funding cuts.
