Toronto’s immigrant settlement agencies are bracing for significant disruptions to services as funding cuts begin to take hold, threatening vital support for newcomers navigating life in Canada. A recent survey reveals that nearly half of these organizations in the Greater Toronto Area anticipate program closures in the near future, a consequence of federal budget reductions initiated in 2024. The looming cuts raise concerns about access to essential resources like language training, job search assistance, and housing support, particularly for vulnerable populations including refugees.
The findings, released this week, are based on a survey of 48 newcomer service agencies conducted by United Way Greater Toronto, the Ontario Council of Agencies Serving Immigrants, and the City of Toronto. According to the survey, 44 per cent of respondents expect program closures, while 56 per cent foresee program disruptions due to declining funds. This comes at a time when demand for settlement services remains high, with a 70 per cent increase in need since 2020, while capacity has only grown by 40 per cent, according to Stephanie Procyk, research director for United Way Greater Toronto.
Impact on Language Training and Employment
A key area of concern is the impact on language training programs. Jessica Kwik, director of the Peel Newcomer Strategy Group, explained that cuts are disproportionately affecting higher-level language courses. “We’re seeing that erosion where if people aren’t able to get employment, there’s going to be income insufficiency around housing,” Kwik said. “And a lot of the people who come to settlement services are families with children.” The Peel Newcomer Strategy Group connects newcomers with organizations offering language training, job assistance, and housing support.
The lack of adequate language skills can create significant barriers to employment for newcomers, leading to financial instability and housing insecurity. Kwik noted that a “strong proportion” of those utilizing settlement services in the GTA are refugees, making them particularly vulnerable to these cuts. The challenges are compounded by a significant backlog in asylum claims; approximately 300,000 claims were pending with the Immigration and Refugee Board as of December 31, 2025.
Federal Funding Reductions and Immigration Levels
The current crisis stems from a three-year, $317.3 million reduction in the Immigration, Refugee and Citizenship Canada budget that began in the 2024 fiscal year. All federal departments have been instructed to find an additional 15 per cent in savings over the next three years, potentially exacerbating the situation. These cuts are occurring as the federal government adjusts its immigration targets. After a period of aiming to welcome upwards of 500,000 new permanent residents annually following the COVID-19 pandemic, the government began reducing that target in 2024, with a current plan to accept 380,000 new permanent residents this year.
Settlement service organizations receive federal funding based on projected permanent resident arrivals. As arrival numbers decrease, so too do the budgets allocated to support these newcomers. However, Procyk emphasizes that demand for services remains substantial, even with the adjusted immigration targets. “We still expect high demand for settlement services in the GTA despite the federal push to reduce the number of newcomers,” she said.
Layoffs and Capacity Crunch
The financial strain is already leading to difficult decisions for settlement agencies. The survey revealed that 68 per cent of agencies anticipate layoffs between now and 2028, collectively predicting the loss of approximately 310 jobs. Losing skilled language trainers is a particular concern, as Kwik highlighted the difficulty in finding individuals with the necessary combination of linguistic expertise and social services experience. “It takes time for one to be trained and to develop the experience to operate in social services. So it does mean that we’re losing a lot of that combination of skills when we start cutting back on the workforce,” she explained.
Agencies are bracing for longer wait times and increased employee burnout as they attempt to maintain services with fewer resources. Procyk warned that these constraints will ultimately impact the well-being of newcomers and the broader community. “The key part of Here’s that newcomers and immigrants are not going to get the critical services they need,” she said. “They may be facing really long wait times. They may face not being able to access these critical programs, and so when the sector has all these constraints and barriers, it impacts people on the ground in a way that’s really connected to our health and well-being as a country.”
Looking Ahead
The United Way Greater Toronto is actively working to address the challenges facing the settlement sector, as evidenced by their recent grant of over $1 million to address local priorities in Toronto, Peel and York Region. More information about their initiatives can be found on their website. The next key date to watch is the release of further details regarding the 2025-26 federal budget cuts and their specific impact on Immigration, Refugee and Citizenship Canada. The situation underscores the critical need for sustained investment in newcomer services to ensure successful integration and a thriving, inclusive society.
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