In a recent Toronto Star article by Ryan Tumilty and Nicholas Keung, the federal government announced sweeping changes as part of its Canada Immigration Overhaul, including a dramatic reduction in the international student permit cap for 2026—cutting new permits to just 150,000, less than half the previous target. The budget also maintains an annual intake of 380,000 new permanent residents over the next three years, with a clear shift toward economic immigration. These adjustments come as Ottawa responds to mounting public concerns over housing affordability, rising living costs, and pressure on healthcare resources.

MKS partner Kyle Hyndman, warns that the new student permit cap for 2026 risks undermining the country’s long-standing approach to nation-building. “It’s through immigration that you bring in skilled people who are going to build, who are going to contribute to the economy, who are going to create jobs,” Hyndman states, arguing that the Canada Immigration Overhaul is more about reacting to opinion polls than fostering sustainable growth.

The government defends the changes as necessary to restore sustainability. Finance Minister François-Philippe Champagne asserts, “We are taking back control of our immigration system.” However, critics like Larissa Bezo, CEO of the Canadian Bureau for International Education, warn that the new caps “further erode Canada’s reputation” and signal closed doors to prospective students.

While the plan reduces temporary resident admissions, it offers pathways for some work permit holders and protected persons to gain permanent residency. The share of economic immigrants will rise to 64%, but refugee and asylum spots will decrease. Hyndman’s remarks underscore the tension between public sentiment and Canada’s traditional role as a destination for global talent and opportunity.

To read the complete article click here

Our recognition among Canada’s Best Law Firms is a testament to the trust our clients and peers place in our expertise and the unwavering dedication of our team. This honour inspires us to continue setting the standard for legal excellence in immigration law. Whether you’re navigating complex visa processes, seeking permanent residency, or planning your future in Canada, MKS Immigration Lawyers is here to guide you every step of the way. Let’s discuss how we can help you achieve your goals—book your consultation with us today.