immigration News Immigration Updates Team January 28, 2026

Canada and U.S. took opposing paths on immigration in 2025

Canada and the United States both reduced immigration levels in 2025, but each adopted sharply different strategies. The U.S. government implemented wide-ranging restrictions, while Canada narrowed its focus to adjust programs in specific sectors facing labour shortages.

The contrasting approaches affected pathways to permanent residence, employer sponsorships, and temporary work permits across both countries, shaping workforce and economic priorities throughout the year.

The U.S. halted the Diversity Visa Program and introduced a high-cost investment-based permanent residence option.
Canada launched new permanent residence pilots for rural and francophone communities.
U.S. employers faced a new $100,000 fee for sponsoring H-1B foreign workers.
Canada limited low-wage Temporary Foreign Worker Program positions in areas of high unemployment.
New Canadian immigration pathways targeted essential sectors such as healthcare, education, and trades.

Different strategies behind immigration reductions

Under President Donald Trump, the United States adopted a protectionist approach to immigration, limiting access for foreign workers and reducing visa availability across industries. The administration cited a need to prioritize U.S. citizens in the labour market.

Canada’s federal government, meanwhile, took a more selective approach by adjusting permanent residence and temporary work programs to address labour market gaps. Rather than across-the-board reductions, measures targeted specific economic sectors and regions requiring workforce support.

Canadian permanent residence initiatives

In early 2025, Canada introduced two new employer-driven programs: the Rural Community Immigration Pilot (RCIP) and the Francophone Community Immigration Pilot (FCIP). Both are designed to support economic development in smaller or remote regions by connecting local employers with foreign workers seeking permanent residence.

Applicants under these pilots must secure a job offer from a participating employer, with regional development organizations endorsing both the employer and the position. The approach decentralizes decision-making to local communities, empowering them to fill essential labour roles.

Later in the year, the federal government also unveiled a temporary-to-permanent residence program intended to transition eligible foreign workers already in Canada to permanent status. The program was included in the 2025 federal budget and aims to provide long-term stability for approximately 33,000 participants.

U.S. permanent residence changes

The United States took a markedly different route by suspending the Diversity Visa Program, which historically allocated green cards to applicants from underrepresented countries through a lottery system. In its place, Washington introduced the “Gold Card,” offering permanent residence to foreign entrepreneurs who invest at least one million U.S. dollars.

Later, a separate “Trump Platinum Card” was announced, granting holders up to 270 days of residency per year without taxation on non-U.S. income, for a fee of five million U.S. dollars. Both initiatives were positioned as economic investment incentives but limited access to high-net-worth individuals.

Targeted workforce measures in Canada

Throughout 2025, Canada refined its immigration selection to focus on high-demand professions. In February, new permanent residence opportunities were introduced for workers in healthcare, social services, education, and skilled trades. By December, a dedicated stream for physicians with Canadian work experience was also announced.

These actions complemented existing programs such as the Manitoba Provincial Nominee Program (MPNP), which continues to support provincial efforts to attract and retain skilled workers based on regional economic priorities.

Work permit restrictions and expansions

Canada’s adjustments to temporary work permits included halting new and renewed applications for low-wage positions under the Temporary Foreign Worker Program in areas with higher unemployment. Additionally, eligibility for spousal open work permits was restricted to the spouses of certain international students and high-skilled foreign workers.

These targeted changes aimed to balance local employment conditions while maintaining access to talent in key industries. By contrast, the U.S. introduced a universal $100,000 filing fee for employers seeking to sponsor foreign workers through the H-1B visa program, widely used in technology, healthcare, and engineering sectors.

Following the U.S. fee announcement in September 2025, H-1B registrations declined by 27 percent year over year. Canada responded within weeks by outlining plans to attract international talent impacted by the new U.S. policy, including a future pathway to permanent residence for current H-1B visa holders.

Broader implications for labour and migration

Canada’s approach in 2025 emphasized labour market responsiveness and community involvement, with immigration used as a tool for regional development. U.S. policy, in contrast, prioritized domestic employment protection and investment-based residency opportunities.

Both countries reduced overall immigration volumes, yet their contrasting frameworks underscored different national priorities: Canada’s focus on economic inclusion through skills and local demand, and the United States’ emphasis on protectionism and capital inflow.

As both governments prepare future immigration frameworks, observers note that the divergence between targeted economic migration and broad restrictionist policy continues to shape North American mobility and labour trends.

For further coverage of evolving Canadian immigration programs and provincial nominee initiatives, readers can explore related updates in the immigration news section.