Toronto Immigrant Services in Crisis: Half Face Closure Due to Funding Cuts (2026)

Almost Half of Toronto's Immigrant Settlement Services Face Program Closures

The Future of Toronto's Immigrant Services: A Looming Crisis

In a concerning development, nearly half of the immigrant service organizations in the Greater Toronto Area (GTA) are bracing for program closures in the near future. This alarming trend is primarily attributed to federal funding cuts that began in 2024. A survey conducted by the United Way Greater Toronto, Ontario Council of Agencies Serving Immigrants, and the City of Toronto reveals a stark reality: 44% of the 48 newcomer service agencies surveyed anticipate program closures, while 56% expect disruptions due to declining funds.

The Impact on Language Training and Employment

Jessica Kwik, director of the Peel Newcomer Strategy Group, highlights a critical issue. Many of the cuts are affecting higher-level language training, which is essential for newcomers to find employment. Without this training, newcomers may struggle to secure jobs, leading to income insufficiency and housing instability. Kwik emphasizes that many of the people seeking settlement services are families with children, making the situation even more vulnerable.

The Peel Newcomer Strategy Group's Role

The Peel Newcomer Strategy Group plays a vital role in connecting newcomers with settlement service organizations specializing in language training and employment assistance. Kwik notes that a significant portion of the people using these services in the GTA are refugees, further emphasizing the urgency of the situation.

Federal Funding Cuts and Their Impact

The United Way report reveals that the cuts are part of a three-year, $317.3 million reduction in the overall Immigration, Refugee, and Citizenship Canada budget, which began in the 2024 fiscal year. This reduction does not account for other cuts announced in the 2025-26 federal budget, where all federal departments have been instructed to find 15% savings over the next three years. The number of new arrivals to Canada surged after the COVID-19 pandemic, with the government aiming to welcome over 500,000 new permanent residents annually.

The Government's Response and Its Implications

The government has since reduced this target, with the latest immigration levels plan setting the goal at 380,000 new permanent residents this year. Settlement service organizations receive federal funding based on projected permanent resident arrivals, and with fewer newcomers, their budgets are shrinking. Stephanie Procyk, research director for United Way Greater Toronto, points out that demand for settlement resources grew rapidly after 2020, but resources have not kept pace, leading to a capacity crunch.

The Way Forward: Challenges and Concerns

As the government continues to reduce the number of newcomers, Procyk expects high demand for settlement services in the GTA. She predicts growing wait times and increased employee burnout as agencies struggle to provide services with fewer resources. Procyk emphasizes that newcomers and immigrants will not receive the critical services they need, potentially facing long wait times and limited access to essential programs. This situation directly impacts the health and well-being of the country.

A Call for Action and Discussion

This crisis raises important questions about the future of immigrant services in Toronto and the impact on newcomers. As the sector grapples with these challenges, it is crucial to consider the ground-level implications and how these decisions will affect communities. The potential for layoffs, as indicated by the survey, further underscores the urgency of addressing these issues. The loss of language trainers, in particular, is a concern due to the specialized skills required for these roles. The situation demands a thoughtful and proactive approach to ensure the well-being of newcomers and the stability of settlement services in the GTA.

Toronto Immigrant Services in Crisis: Half Face Closure Due to Funding Cuts (2026)

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