Canada opens fast-track for H-1B visa holders, announces $1.2 billion plan

Canada sets aside C$1.7 billion to bring in over 1,000 top researchers and launches a fast-track for H-1B visa holders while halving foreign student permits

The Canadian government is rolling out new initiatives to attract top international researchers and skilled professionals, even as it moves to sharply reduce the number of foreign students entering the country each year.

 

Prime Minister Mark Carney’s first budget has set aside C$1.7 billion ($1.2 billion) to bring in over 1,000 highly skilled researchers from abroad. “The expertise of these researchers will help advance our global competitiveness and contribute to the economy of the future,” the budget document said.

 

What’s the Canada plan for H-1B visa holders?

 

The government also plans to launch an “accelerated pathway” for H-1B visa holders in the coming months. The move comes as President Donald Trump’s administration has raised H-1B visa fees to $100,000, sparking concerns among skilled foreign workers in the United States who may now look north.

 

 

While attracting talent is a clear priority, Canada is keeping firm control over the overall number of immigrants allowed into the country. Officials have cited the recent surge in population as a reason for tightening temporary migration flows.

 

How many immigrants will Canada admit?

 

The latest immigration plan sets a target of 380,000 new permanent residents each year from 2026 through 2028. In contrast, the number of temporary residents will be reduced to 385,000 in 2026 and 370,000 in the following two years, a decline of more than 40 per cent from current levels.

 

Much of this decrease will come from a steep reduction in the number of study permits issued to international students.

 

2026: 155,000 new study permits

2027: 150,000

2028: 150,000

 

These figures represent roughly half the intake projected by former Prime Minister Justin Trudeau’s government, which planned for about 305,900 study permits annually from 2025 to 2027.

 

How have universities responded?

 

Universities Canada responded cautiously to the new plan. In a statement, it said it “recognises the government’s efforts to build a sustainable immigration system that welcomes those seeking to study at Canada’s world-class universities, but the plan must match this government’s talent and economic agenda.” 

 

What does the Desjardins report say about the economy?

 

A report by Desjardins, a leading Canadian financial firm, said that bringing fewer people into the country “should support wage growth in the near-term, as employers bid to attract fewer available workers.”

 

The report added that slower population growth could ease pressure on housing. “The slower population growth should ease shelter inflation, particularly in the rental sector, as temporary foreign workers and international students are likelier to rent. Lastly, the slower pace of population growth should help reverse Canada’s falling GDP per capita,” it said.

 

Desjardins expects only a minor impact on Canada’s overall GDP growth projections despite the demographic slowdown. 

 

How will the new policy affect non-permanent residents?

 

The government now wants to bring the share of non-permanent residents down to below 5 per cent of the population by the end of 2027, extending that target by a year. As of July 1, non-permanent residents accounted for 7.3 per cent of Canada’s population.