The federal government has confirmed it will end funding for temporary hotel accommodations for asylum seekers by September 30, 2025, sparking serious concerns from housing advocates and frontline organizations. The program, which Immigration, Refugees and Citizenship Canada (IRCC) maintains was always meant as a short-term emergency solution, will be phased out just as housing markets in major cities continue to tighten.
Since the initiative began in 2020, the government has spent approximately $1.1 billion providing hotel rooms for asylum claimants. While more than 15,000 people have since transitioned into independent housing, 485 individuals across Ontario and Quebec still rely on federally funded hotel accommodations. According to IRCC, staff will remain on-site during the transition to help these individuals secure longer-term housing and connect with provincial and municipal supports.
But for many in the sector, the looming deadline has triggered alarm. Adaoma Patterson of United Way Greater Toronto warned that shelter systems are already stretched thin. She said the sudden withdrawal of hotel funding risks forcing vulnerable newcomers into overcrowded or unsafe environments, endangering their health and safety.
This decision comes just weeks after the federal government scrapped a $68 million asylum system overhaul and introduced the Strong Borders Act, a controversial policy that includes a one-year deadline for asylum applications after arrival in Canada. Critics argue that these changes reflect a hardening federal stance on immigration, even as demand for support remains high.
IRCC claims the number of asylum seekers has dropped by nearly 40 percent compared to last year, though it has not provided clear explanations for the decline. Economist Christopher Worswick questioned whether the drop in numbers simply reflects a shift in responsibility—from Ottawa to financially stretched provinces and municipalities. “Where is the money going to come from?” he asked, pointing out that local governments lack the tax powers to absorb such sudden costs.
Faith-based and grassroots groups are also sounding the alarm. In Vaughan, Ontario, Miracle Arena For All Nations has sheltered over 500 asylum seekers since 2023, often without formal government support. Its leader, Minister Isaac Oppong, says the church is doing all it can—but warns the end of federal hotel funding could leave many newcomers homeless once again. “We are already overwhelmed,” he said. “If nothing changes, people will be back on the streets.”
As the September deadline nears, questions remain about how governments at all levels will coordinate support—and whether those caught in the middle will be left behind.