The federal government's spring economic update has provided a financial reprieve for several programs that were facing funding reductions, including refugee housing support.
Funding for Asylum Seeker Housing
Immigration, Refugees and Citizenship Canada (IRCC) will receive $188 million per year for three additional years, until 2029-30, for sheltering asylum claimants. This is a decrease from the $252 million allocated in 2026-27, but it reverses a potential funding cliff that could have downloaded costs onto municipalities.
Before the update, refugee advocates had expressed concern about the renewal of the Interim Housing Assistance Program, which helps municipalities pay for sheltering asylum seekers. Economists warned that without renewed funding, cities like Ottawa, Peel Region, Toronto, and Montreal would bear the brunt of housing costs for asylum seekers starting at the end of the current fiscal year.
Other Programs Receive Funding
The spring economic update also allocated funds to other areas. The temporary foreign worker program, administered by Employment and Social Development Canada, will receive $88 million over two years starting this fiscal year. Additionally, a Migrant Worker Support Program will get $20 million in 2026-2027.
Library and Archives Canada, which faced a $13.6 million cut to its access-to-information division, will receive $81 million over four years to address its backlog of access requests.
Economic Context
Hadrian Mertins-Kirkwood, an economist at the Canadian Centre of Policy Alternatives, described the funding as "mostly not a huge amount of money," but noted it reflects adjustments after the fall budget's spending review, which required departments to find hundreds of millions in savings.
Mostafa Askari, an economist at the Institute of Fiscal Studies and Democracy, stated that the spring economic update indicates the federal government is on track to balance its operating budget in three years.
The update did not specify whether the Interim Housing Program specifically will receive the funding, which was designated for "Sheltering Asylum Claimants." However, the allocation ensures continued support for refugee housing in the near term.
