Prime Minister Mark Carney unveiled a new immigration plan on Tuesday, aiming to address Canada's growing population. The plan proposes granting permanent resident status to 380,000 individuals each year from 2026 to 2028. Additionally, over the next two years, 148,000 refugees and work permit holders will also receive permanent residency. This indicates that not all individuals with temporary status will return to their home countries.

The government plans to welcome 385,000 temporary residents, including workers and study permit holders, in 2026, followed by 370,000 in each of the subsequent two years. This totals more than 800,000 new arrivals annually. However, a budget note clarifies that these figures do not include asylum seekers, who are not subject to any caps. Asylum seekers may enter Canada through various means, including visitor visas, illegal border crossings, and temporary workers who apply for asylum to extend their stay.

Visitor visas also lack a cap, raising concerns about their misuse. Many individuals from economically disadvantaged countries use these visas to enter Canada and subsequently claim asylum. The lengthy processing times for these applications allow them to access Canadian healthcare and establish roots, which can support future permanent residency applications if their asylum claims are denied.

While the new immigration levels represent a decrease from the record numbers of 2022—437,000 new permanent residents and 604,000 temporary residents, totaling over 1 million—the 2026 plan still exceeds the 681,000 new entrants recorded in 2014. Critics argue that a return to 2014 levels should be the minimum expectation, especially after the surge in immigration under the previous administration.

The ongoing high immigration rates contribute to intense competition in the job market, inflated housing costs, and strain on the healthcare system. Schools are also struggling to accommodate the influx of new families, many of whom have children who may not speak English. The broader societal costs of cultural non-integration remain difficult to quantify.

The budget provides some insight into the financial implications of the immigration plan. For the 2025-26 year, Canada spent $67 million on lodging for asylum seekers. Although this program officially ended in September, the budget reflects expenses incurred prior to that date. Asylum seekers will now need to rely on non-profit, provincial, and municipal housing resources or pay for housing privately, which may still leave the government responsible for some costs.

In terms of healthcare, the government has allocated $1 billion over the next two years for asylum seeker and refugee health coverage. This funding is necessary because Canada guarantees healthcare access to anyone who claims asylum, a policy that has not been adjusted despite the recent surge in migration. Coverage includes a wide range of services, such as doctor visits, prescription drugs, vision care, and psychological counseling.

Additionally, $479 million is earmarked over the next three years for enhancing the asylum system and legal aid capacity, which includes funding for legal representation for asylum seekers. Some of this funding will also support the Canada Border Services Agency, which is tasked with enforcing immigration laws and deporting individuals when necessary, although the agency is also facing its own challenges.