Home » News » ‘It was never meant to be permanent’: Canada to stop funding hotel rooms for asylum seekers, spent $1.1 billion since 2020

‘It was never meant to be permanent’: Canada to stop funding hotel rooms for asylum seekers, spent $1.1 billion since 2020

Canada Halts Hotel Aid for Asylum Seekers

Government Cites $1.1 Billion Spent as Program Ends September 30

Canada is set to discontinue funding for hotel accommodations for asylum seekers as the federal government concludes a program that has cost an estimated $1.1 billion since 2020. Immigration, Refugees and Citizenship Canada confirmed that funding for these temporary housing arrangements will cease on September 30, 2025.

Humanitarian Measure Nears Conclusion

The provision of hotel rooms was initiated as a temporary humanitarian response to a significant increase in asylum claims, rather than a long-term solution. Officials emphasized that the measure was never intended to be permanent. The department is now focused on assisting the remaining individuals in hotels to secure more sustainable housing before the deadline.

Over 15,000 asylum claimants have already transitioned from hotel stays to independent living arrangements. For the 485 individuals still housed in hotels, the department will offer on-site support as they search for longer-term accommodations. Canada also plans to continue supporting provincial and municipal efforts to develop their own housing strategies.

Canada’s commitment to housing asylum seekers stems from its obligations under international law, including the 1951 UN Refugee Convention, and domestic legislation. This support ensures basic shelter and safety while refugee claims are processed.

Provincial Concerns Over Processing Times

The move comes as some provinces express frustration with federal processing timelines. Ontario Premier Doug Ford recently highlighted that asylum seekers can wait over two years for work permits, a delay he believes contributes to the necessity of government-funded hotel stays. Ford indicated that his administration is exploring ways to issue permits directly, bypassing federal delays.

In 2023, a funding dispute between the federal government and Toronto left hundreds of asylum seekers without shelter, forcing them to sleep on city streets. This situation underscored the challenges in managing the influx and ensuring adequate support systems.

Canada plans to cease funding for asylum seeker hotel rooms by September 30, 2025.

The backlog in processing asylum claims in Canada has reached critical levels, with some applicants waiting years for a decision. According to a report by the Canadian Council for Refugees, as of December 2023, over 150,000 asylum claims were pending, representing a significant increase from previous years.

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