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Canada Sets Multi-Year Cuts to Temporary Residents, Halves International Student Permits

The budget pivots to curb strain on housing and public services.

Overview

  • Temporary resident admissions are targeted at 385,000 in 2026 and 370,000 in both 2027 and 2028, including a reduction in international study permits to 155,000 in 2026 and 150,000 in 2027–28.
  • Permanent resident admissions are stabilized at 380,000 annually from 2026 to 2028, with a renewed goal to lower temporary residents to 5% of the population by 2027.
  • The 2026 target includes 230,000 temporary workers, down sharply from nearly 368,000 planned for 2025, according to the federal plan.
  • Economists forecast that slower temporary inflows could leave population growth flat over the next two years and weigh on economic growth, with mixed implications for rental markets and construction.
  • IRCC says master’s and doctoral students will be exempt from the study‑permit cap starting January 1, 2026, with expedited processing for doctoral candidates and their families.