Canada is shifting gears on immigration. In its biggest policy overhaul in decades, the federal government has unveiled a plan to reduce the number of temporary residents by as much as one-third while creating a new fast-track pathway for U.S.-based H-1B visa holders and other highly skilled professionals to become permanent residents.
The changes, announced under Budget 2025 and the 2026–2028 Immigration Levels Plan, reflect a pivot from population-driven growth to skills-based immigration as Canada grapples with housing shortages, healthcare strain, and public concern over record arrivals.
At the same time, Canada is positioning itself to attract high-value talent from the United States. A new immigration stream will allow up to 33,000 H-1B visa holders and other skilled professionals to transition directly to Canadian permanent residency by 2027.