After American Dream, Canadian Dream Falters As Ottawa Moves To Slash Visas & Tighten Borders

If you had pinned your hopes on Canada after the end of the American dream, you might have to think again. Canada is preparing to implement one of the most extensive immigration control measures in its modern history, marking a significant shift in a country that has long been viewed as one of the world’s most open destinations for migrants and international students.

The federal government’s proposed Bill C12, tabled in Parliament as part of its new border legislation, will give immigration authorities broad powers to suspend or cancel entire groups of temporary visas, including by country or applicant category, if certain conditions arise.

Publicly, officials have said the measures will be reserved for emergencies such as pandemics or global

crises that require swift travel restrictions. However, internal documents reviewed by public sources suggest the Bill is also intended to address concerns about country-specific visa fraud. The documents cite joint efforts with international partners to detect and block large-scale fraudulent visa applications, particularly those linked to visitor and study permits.

Immigration Levels Slashed

In its latest immigration levels plan, released with Tuesday’s federal budget, Ottawa announced a sharp reduction in temporary resident admissions. The number of temporary residents allowed to enter Canada will be capped at 3,85,000 next year, down from 6,75,000 in 2025—a reduction of more than 40 per cent.

The cuts will heavily affect international students, a key source of both talent and revenue for Canada’s post-secondary institutions. The government’s previous target of admitting 3,05,900 students annually from 2025 to 2027 has been cut to 1,55,000 in 2026 and further reduced to 1,50,000 in 2027 and 2028.

“This reduction reflects waning public support for immigration,” said Amarjeet Singh Gill, an immigration lawyer based in Toronto. “Political parties are adjusting their policies to match public sentiment.”

The decision is expected to spark pushback from colleges and universities that depend on international tuition to sustain their budgets.

Sharp Decline In Indian Student Approvals

The tightening of Canada’s immigration system is already visible in recent data. In August, nearly 75 per cent of Indian applicants seeking study permits were rejected, compared with just 32 per cent a year earlier.

Globally, student permit rejection rates have remained around 40 per cent, while Chinese applicants saw a denial rate of only 24 per cent.

According to Immigration, Refugees and Citizenship Canada (IRCC), the number of active study permits held by Indian nationals fell from 3,19,000 in 2023 to 2,26,000 in 2024—the steepest annual decline in over a decade.

The crackdown follows the 2023 student visa fraud scandal, in which authorities uncovered 1,550 fraudulent study permit applications linked to fake admission letters, most originating from India.

Balancing Restriction With Opportunity

Despite the new restrictions, the federal budget includes provisions aimed at attracting global tech talent. Ottawa has announced plans for a streamlined pathway for holders of US H-1B visas, allowing skilled workers in the technology sector to transition more easily to Canada.

Analysts say the measure is designed to help Canadian firms compete for highly skilled professionals, even as the government reins in the overall number of temporary residents.

For decades, Canada’s immigration policies have been a cornerstone of its economic and social growth. But with housing affordability, public services, and labour market pressures becoming dominant political issues, the government appears to be recalibrating its approach.

As Bill C12 advances and new admission caps take effect, many observers believe the era of Canada’s open-door immigration model may be coming to an end.