Canadian Refugee Health Program Costs Soar to $1 Billion Amid Asylum Surge
A federal initiative designed to provide healthcare to refugees and asylum seekers in Canada has seen its expenses balloon dramatically over the past decade. Originally costing taxpayers a modest $60 million annually in 2016, the Interim Federal Health Program (IFHP) is now projected to reach nearly $1 billion in expenditures this year. According to a recent report from the Parliamentary Budget Officer, this trend is set to continue, with annual costs expected to surpass $1.5 billion by the end of the decade.
Drastic Increase in Asylum Claims Fuels Financial Strain
The sharp rise in program costs is largely attributed to two key factors: the Liberal government's expansion of program benefits and a significant increase in asylum applications, many of which are considered fraudulent. In 2016, the program covered just over 16,000 individuals who had claimed asylum in Canada. By 2024, the number of asylum seekers had surged to 190,000, with an additional backlog of more than 250,000 unheard claims as of late last year.
Currently, approximately 600,000 people are enrolled in the IFHP, with asylum claimants constituting more than two-thirds of this total. This represents a staggering growth in coverage, placing immense pressure on public finances.
Breakdown of Program Coverage and Eligibility
The IFHP serves several distinct groups:
- Overseas Settled Refugees: Individuals resettled from refugee camps abroad, representing the smallest segment of beneficiaries.
- In-Canada Resettled Refugees: Those granted entry based on persecution in their home countries due to factors like race, religion, or political opinion.
- Asylum Claimants: The majority of participants, who arrive in Canada through various means—such as visa-free travel or temporary permits—and subsequently file for asylum.
Canada's lenient visa policies have been identified as a primary driver of the influx. For instance, the absence of visa requirements for certain countries has enabled thousands to enter and claim asylum upon arrival. Notably, in 2024, there were 12,891 claims from Mexico, a figure that dropped significantly after visa requirements were reinstated.
Notable Trends in Asylum Applications
The data reveals concerning patterns in asylum claims from countries not traditionally associated with refugee crises. In 2024, 32,563 Indian nationals sought asylum in Canada, with a backlog of roughly 44,000 claims by the end of 2025. This marks a dramatic shift from a decade ago, when only a few hundred Indian nationals applied annually under the Stephen Harper government.
Similarly, close to 500 Americans declared asylum in Canada in 2025, highlighting systemic issues that persist regardless of political leadership in the United States.
Taxpayer Burden and Proposed Reforms
As costs escalate, Canadian taxpayers are footing the bill for a program increasingly exploited by those seeking to bypass standard immigration procedures. In response, the Mark Carney Liberals have proposed adjustments to curb expenses, including introducing a 30% co-pay for services like dental, eye, and mental health care—benefits that many Canadians lack under their own government plans.
However, critics argue that such measures merely tinker at the edges. A more effective solution, they suggest, would involve overhauling the asylum system to prevent abuse and restore public confidence, thereby reducing financial strain and ensuring resources are directed toward genuine refugees in need.
