Ottawa Officials Seek Answers on Potential Asylum Seeker Housing Funding Reductions
City of Ottawa officials are actively seeking additional information from Immigration, Refugees and Citizenship Canada regarding potential funding cuts to asylum seeker housing programs. This comes as Toronto simultaneously calls for increased funding to support housing for asylum seekers across municipalities.
Report Reveals Federal Plan to Shift Costs to Municipalities
A recent report from the Canadian Centre for Policy Alternatives has revealed that Immigration, Refugees and Citizenship Canada plans to download asylum housing costs onto municipalities like Ottawa. The report indicates that IRCC funding cuts will significantly impact asylum seeker housing funding for municipalities, along with health-care reductions for claimants and program cuts for economic migrants.
Ottawa, Montreal, Toronto, and the Peel Region currently house almost all asylum seekers in Canada. Ottawa received approximately 10 percent of funding from the Interim Housing Assistance Program, which was designed as a temporary solution for cities experiencing an influx of refugees.
Uncertain Future for Municipal Budgets
The temporary IHAP program was gradually winding down its funding, with the federal government originally planning to split costs with municipalities after 2027. However, according to the report, the federal government's spending review—which sought approximately a 15 percent cut to IRCC's budget—has displaced that plan in favor of a complete download of costs to municipalities.
Now, cities could face significant financial challenges in an uncertain global environment marked by emerging conflicts. "The City has not received any formal communication from IRCC regarding potential reductions to IHAP funding or any plans to transfer operating costs to municipalities, despite recent media reports," said Councillor Laura Dudas, chair of the Community Services Committee.
Ottawa's Current Housing Agreement
Kale Brown, director of Housing and Homelessness for the City of Ottawa, confirmed that the city signed an agreement for IRCC funding required to purchase a vacant hotel at 377 O'Connor Street to support family transitional housing for asylum seekers. However, this signed agreement remains subject to council approval.
Council must now make a decision regarding the vacant hotel with the knowledge that the city could potentially foot the entire bill for future operating costs. According to the report's author, David Macdonald, the city could pay between $14 million and $25 million annually without federal assistance.
Municipal Concerns About Fiscal Capacity
"Immigration is a federal responsibility," emphasized Councillor Dudas. "Municipalities simply do not have the fiscal capacity to assume the costs associated with housing newcomers. Any reduction or change to federal funding must therefore be accompanied by a new funding mechanism or a continuation of the existing program."
Brown stated that the city is aware of the report and is "working with the federal government to better understand the implications for the city." This situation highlights the growing tension between federal immigration responsibilities and municipal financial realities as cities prepare for potential funding shifts that could significantly impact their budgets and services.
