Toronto 
Canada wants to reduce the number of new temporary residents entering the country, but it also plans to give more people already living here a chance to stay permanently.
Credit: sebastiaan stam
Under Budget 2026, Ottawa proposes allowing up to 200,000 existing temporary residents to become permanent residents by the end of 2027.
The announcement comes alongside immigration targets of 380,000 new permanent residents and 370,000 temporary resident arrivals annually for the next three years.
Who Could Qualify for the 200,000 Permanent Residency Opportunities?
The proposed initiative would help longstanding temporary residents already in Canada transition to permanent residency by the end of 2027.
Of the 200,000 potential transitions, the government specifically identifies 100,000 workers eligible through Express Entry or the Provincial Nominee Program.
Ottawa intends to work with provinces and territories on the initiative, giving them more flexibility to select workers who meet regional employment needs.
The budget proposes $302.3 million over four years, beginning in 2027–28, followed by $90.6 million in future years, to support implementation.
What remains unclear is how the remaining potential transitions would be handled.
The government has not provided a complete list of eligible occupations, work experience requirements, qualifying immigration statuses or application procedures. It also has not said whether people will need to apply through a new program or existing immigration pathways.
The proposed 200,000 figure is therefore not a guarantee of permanent residency for everyone currently holding temporary status.
Canada’s Immigration Targets for 2027 to 2029
While the government is planning more permanent residency transitions for people already here, it intends to keep overall immigration at lower levels than those recorded in recent years.
The proposed 2027–2029 Immigration Levels Plan sets the following annual targets:
- 380,000 permanent resident admissions in each of 2027, 2028 and 2029.
- 370,000 new temporary resident arrivals in each of those years.
In 2024, Canada admitted 483,655 permanent residents and recorded 686,010 new temporary resident arrivals. In 2023, there were 471,820 permanent resident admissions and 971,815 new temporary resident arrivals.
Ottawa’s proposed targets would bring both categories below those earlier levels.
Ottawa says it wants immigration to respond to labour shortages without placing excessive demands on public services. In the budget, the government describes the challenge as meeting economic needs while “avoiding undue pressures on housing, health care, and social services.”
The new figures are annual targets, not the total number of immigrants or temporary residents living in Canada.
The budget also does not establish whether the proposed 200,000 permanent residency transitions would be additional to the annual admission targets. They should not be treated as separate admissions on top of the 380,000 figure.
International Student and Foreign Worker Arrivals Have Already Fallen
Canada’s immigration reductions are already reflected in the government’s arrival figures.
Between January and August 2026, new international student arrivals fell 71%, or 156,440, compared with the same eight months in 2024.
New worker arrivals dropped 57%, representing 170,455 fewer arrivals. New asylum claims were also down 68% over the same comparison period.
These numbers measure new arrivals and claims, not the total number of international students, temporary workers or asylum claimants currently in Canada.
The budget does not separately specify how many international students or foreign workers would be admitted annually under the proposed 370,000 temporary resident target.
Those details are expected to accompany the immigration levels plan when the Minister of Immigration, Refugees and Citizenship tables the 2026 Annual Report to Parliament on Immigration.
Temporary Foreign Worker Program to Undergo More Changes
Employers relying on foreign workers could also see changes.
Budget 2026 proposes $151.5 million over five years, beginning in 2026–27, to reform the Temporary Foreign Worker Program.
The government wants the program to respond more closely to regional labour shortages, reduce processing times and strengthen checks on employers following program rules.
The reforms would be developed with provinces and territories.
The budget also includes $82 million over four years for the Migrant Worker Support Program, which funds organizations helping foreign workers understand their rights and seek assistance with workplace problems, including abuse or exploitation.
For workers and employers, however, the budget does not yet provide a detailed timetable for the proposed reforms.
Express Entry, Skilled Workers and a New Startup Pilot
Even as Canada lowers overall arrival targets, the government says it intends to continue attracting people with skills needed by Canadian businesses.
The budget points to ongoing efforts to modernize Express Entry selection, particularly for workers who can fill critical labour shortages.
It also mentions the development of a new high-impact startup immigration pilot for entrepreneurs and innovators with the potential to create jobs in Canada.
These efforts build on the $1.7 billion International Talent Attraction Strategy and Action Plan announced in Budget 2025.
The government also highlights the Global Talent Stream, under which eligible employers in strategic sectors can receive Labour Market Impact Assessment processing in as few as 10 business days.
The budget does not provide an opening date or eligibility criteria for the proposed startup pilot.
New Immigration Screening Requirements Also Proposed
Changes could also affect some people travelling to Canada.
Budget 2026 proposes $90 million over four years to expand biometric screening, including a requirement for visa-exempt travellers applying for an electronic Travel Authorization (eTA) to submit a facial image remotely to verify their identity.
The government also proposes $98 million in gross funding for asylum processing, with $35 million to come from existing departmental resources, to help reduce outstanding cases.
The proposed biometric changes have no confirmed implementation date in the budget.
More information is expected when the federal government releases the details accompanying its 2027–2029 Immigration Levels Plan.
More Details: Chapter 3 of Budget 2026, and Chapter 5.
