Maple News reports that Immigration, Refugees and Citizenship Canada (IRCC) allocated over $1.7 billion in the 2021–2022 fiscal year to support immigrant settlement and integration across the country. This figure is part of Canada’s broader goal to facilitate newcomer success and represents nearly half of IRCC’s total operational budget.
An internal IRCC memo, approved by then-Immigration Minister Marco Mendicino, outlines how the funds were distributed by province and territory. Ontario led the provincial allocations with $407.2 million, followed by Alberta ($124.1 million) and British Columbia ($119 million). The province of Quebec, which administers its own programs under the Canada-Quebec Accord, received the single largest share—$650.3 million—through a separate grant.
Settlement services funded by IRCC include language training, employment assistance, mentorship, and programs aimed at supporting refugees and other newcomers. These services are typically administered through approved non-profits, educational institutions, and—in some cases—private sector organizations. All services are free to eligible immigrants.
Funding allocations are based on a National Settlement Funding Formula, which factors in a three-year average of immigrant landings by region. Refugees are given additional weight due to their greater need for support services. While this formula promotes proportional funding, IRCC acknowledges it is imperfect, often causing pushback from provinces and service organizations who face operational uncertainty when allocations shift.
Smaller jurisdictions such as Nunavut and the Yukon received significantly higher per-capita funding—up to $16,432 per person in Nunavut—given their lower immigration numbers and need for capacity building. Ontario, despite receiving the most in total funds, secured approximately $3,033 per newcomer.
Quebec stands out for its favorable arrangement under the 1991 Canada–Quebec Accord, which guarantees increasing settlement grants regardless of the province’s immigration intake. For example, despite Quebec reducing its immigration levels by 22% in 2019 compared to 2018, its funding continues to rise annually. This has sparked debate over the fairness of such agreements.
Some provinces, such as Alberta and the Northwest Territories, saw their allocations shrink due to recent declines in immigration, challenging their ability to maintain services. Recognizing this shortfall, the IRCC made a one-time funding top-up to Alberta to maintain its settlement support infrastructure.
Looking ahead, IRCC anticipates growing funding needs in line with Canada’s historic Immigration Levels Plan, which aims to welcome over 400,000 newcomers annually. The department expects to increase total settlement funding to over $2 billion by 2023–24, underscoring Canada’s ongoing commitment to being one of the most supportive countries globally for immigrant integration.
Canada remains a leading funder of settlement services worldwide, investing in newcomers not just to help them adapt, but to ensure long-term national prosperity through their success.