The Canadian federal government is significantly reducing the number of temporary immigration admissions for the upcoming year. In a preview of the three-year immigration plan included in the 2025 budget, the government announced it will cut the number of temporary students allowed into the country by half. Prime Minister Mark Carney aims to maintain the annual intake of permanent residents at 380,000 until 2028, while also implementing stricter limits on temporary resident admissions.

The budget, presented on Tuesday, states that the changes are necessary due to what the government describes as an immigration system that has become unmanageable. The document notes, "In recent years, the system became even harder to manage and less functional, and the pace of arrivals began to exceed Canada’s capacity to absorb and support newcomers in the way we are used to doing." The government asserts that it is taking control of the immigration system to return to sustainable levels, which it believes will benefit all residents of Canada.

Conservative Leader Pierre Poilievre has called for the Liberal government to impose strict caps on immigration levels. He has previously criticized the current immigration system as "broken" and has promised reforms. The budget attributes challenges in housing, healthcare, and education to the rapid increase in temporary resident numbers. Between 2018 and 2024, the proportion of non-permanent residents in Canada doubled to 7.5% of the total population.

The budget indicates that the government recognizes the need for a sustainable immigration system. However, it lacks specific details on how it plans to achieve the new lower levels, such as whether it will impose caps or change eligibility criteria. Further information is expected in the upcoming 2025 Annual Report to Parliament on Immigration.

The most significant reduction in the immigration plan affects temporary foreign student admissions. The government initially intended to cap foreign student visas at 305,000 over the next two years. However, this number will now be halved to 150,000 annually until 2028. Overall, the government had projected granting temporary residency to 673,650 individuals in 2025, but that figure has been revised down to 516,600 for next year. The new plan will allow for 385,000 temporary resident visas next year and 370,000 in the following two years, representing a reduction of over 40% in temporary resident admissions from this year to next.

There will be a slight increase of 20,000 temporary worker visas issued next year. The budget also mentions that the government is considering the needs of various industries affected by U.S. tariffs and the specific requirements of rural Canada. The goal remains to reduce the non-permanent resident population to below 5% of the total population by 2028. Last year, the previous government began cutting immigration levels after years of increases, revising a planned increase of permanent resident admissions in 2025 down by nearly 100,000 to a total of 395,000.