In a move that has sparked intense debate across the nation, Canada is set to terminate its controversial refugee hotel program by September 30, 2025, after seven years and a staggering $1.2 billion in taxpayer funds.
This bold decision by Immigration, Refugees and Citizenship Canada (IRCC) marks the end of a temporary measure that housed thousands of asylum seekers in hotels across the country, particularly in Ontario and Quebec.
As the program winds down, questions loom large: Where will these asylum seekers go?
Will provinces and municipalities bear the brunt of this shift?
And what does this mean for Canada’s humanitarian commitments?
This article dives deep into the details, exploring the program’s history, its costs, the challenges ahead, and the broader implications for Canada’s immigration system.
Table of Contents
The Rise and Fall of Canada’s Refugee Hotel Program
Since 2017, Canada has faced an unprecedented surge in asylum claims, jumping from 50,365 in 2017 to a staggering 173,000 in 2024.
This influx overwhelmed shelter systems in major cities like Toronto and Montreal, prompting the federal government to implement a stopgap solution: housing asylum seekers in hotels.
What began as a temporary measure to ease pressure on provincial and municipal shelters ballooned into a massive operation, with the government leasing rooms in up to 46 hotels nationwide at its peak in late 2023.
The cost?
A jaw-dropping $1.2 billion since 2020, with an additional $1.5 billion funneled to provinces and cities through the Interim Housing Assistance Program (IHAP) to support asylum seeker housing.
The program, initially designed to provide immediate shelter for those awaiting refugee claim processing, was never intended to be permanent.
IRCC has emphasized that hotels are neither sustainable nor cost-effective, with costs averaging $205 per night per claimant at their peak, later dropping to $132 per day by July 2025.
As of now, only 485 asylum seekers remain in five hotels in Ontario and Quebec, a significant reduction from the thousands housed just two years ago.
The government’s decision to end funding by September reflects a strategic pivot toward long-term housing solutions, but it has ignited a firestorm of controversy.
Why Is Canada Ending the Program?
The decision to phase out the refugee hotel program stems from several factors. First, the financial burden has become untenable.
The $1.2 billion spent on hotels since 2020 has drawn sharp criticism from taxpayers and political figures alike, with many arguing that the funds could have been better allocated to veterans, affordable housing, or other pressing domestic needs.
Critics like Conservative Leader Pierre Poilievre’s spokesperson have called the program a symptom of “failed policies and inaction,” pointing to the exponential growth in asylum claims as evidence of mismanagement.
Second, the program’s temporary nature has always been a sticking point.
IRCC spokesperson Isabelle Dubois told CBC News, “IRCC-funded hotels were always a temporary measure to support local shelter systems.”
With asylum claims stabilizing and 13,000 claimants transitioning to community-based housing between January 2024 and March 2025, the government sees an opportunity to redirect resources.
The introduction of “notices to vacate” last year incentivized asylum seekers to find independent accommodations, reducing the reliance on hotels.
Finally, political pressure has played a significant role.
Provinces like Quebec and Ontario have repeatedly complained about the strain on their shelter systems, education, and healthcare services.
Quebec alone received a $750 million pledge from Prime Minister Justin Trudeau to address these pressures, highlighting the tension between federal and provincial responsibilities.
Ontario Premier Doug Ford has also pushed for faster processing of work permits, arguing that delays leave asylum seekers dependent on government support for years.
The Human Cost: Where Will Asylum Seekers Go?
As the September 30 deadline approaches, the fate of the remaining 485 asylum seekers in hotels is uncertain.
IRCC has pledged to work with service providers to help these individuals find housing, employment, and essential services.
However, experts and advocates warn that this transition will be challenging, especially in cities like Toronto and Montreal, where housing shortages and high demand already strain resources.
Christopher Worswick, an economics professor at Carleton University specializing in migration, questions whether the federal government’s move is a genuine effort to streamline the system or an attempt to offload costs onto cash-strapped provinces and municipalities.
“Housing asylum claimants is an international obligation,” Worswick told, warning that cutting federal funding could lead to increased homelessness or reliance on already overburdened local shelters.
Community organizations, which have stepped in to fill gaps in government support, are also feeling the strain.
Minister Isaac Oppong of Miracle Arena For All Nations in Vaughan, Ontario, has been housing and feeding asylum seekers since 2023 without government funding.
“There’s nowhere for them to go,” Oppong told.
“We will go back to square one like 2023,” when hundreds of asylum seekers slept on Toronto’s streets amid a funding stalemate.
Nadine Miller, executive director of Pilgrim Feast Tabernacles Church in Toronto, echoed this sentiment, urging the government to expedite paperwork processing.
“If you sit in a hotel for months without a work permit, you’re no further than the day you came in,” she said.
The Broader Implications for Canada’s Immigration System
Canada’s decision to end the hotel program comes at a time of heightened scrutiny of its immigration policies.
The introduction of Bill C-2, which seeks to restrict asylum hearings to those who arrived in Canada within a year and bar illegal border crossers from the U.S., signals a tougher stance on asylum claims.
Critics argue that these measures could undermine Canada’s obligations under the 1951 UN Refugee Convention, which mandates protection and shelter for asylum seekers.
The $1.2 billion hotel bill has also fueled public frustration, with some online commentators labeling it a “scam” to burden taxpayers.
A TikTok video claiming refugees receive $82,000 in annual benefits went viral, though fact-checkers debunked it as misleading.
The Resettlement Assistance Program (RAP) provides temporary income support based on provincial social assistance rates, far below such exaggerated figures.
Nonetheless, the narrative of “free handouts” persists, amplifying tensions in a country grappling with a housing crisis and rising living costs.
On the flip side, advocates argue that Canada’s humanitarian commitments must take precedence.
The country’s history of welcoming refugees, from Vietnamese boat people to Syrian families, has long been a point of pride.
However, the current system is buckling under the weight of unprecedented demand.
With 138,000 asylum claims pending at the Immigration and Refugee Board, experts like Sergio Karas, an immigration law specialist, argue that the government should focus on reducing claims rather than expanding housing solutions.
“Providing housing on this scale incentivizes more asylum claimants,” Karas told True North.
A Call for Sustainable Solutions
As Canada moves away from hotel accommodations, the government faces pressure to develop sustainable, cost-effective alternatives.
Proposed solutions include:
Investment in Affordable Housing: Expanding social housing and transitional programs could reduce reliance on costly hotels.
The government’s $1.1 billion allocation to IHAP through 2027 aims to support provinces in building long-term housing strategies.
Streamlined Immigration Processes: Faster processing of asylum claims and work permits would allow claimants to become self-sufficient sooner.
Ontario Premier Doug Ford has suggested using a constitutional clause to issue work permits without federal approval, a move that could empower asylum seekers to secure jobs and housing.
Regional Cooperation: Relocating asylum seekers to less burdened provinces, as IRCC has done with 10,580 claimants from Quebec to Ontario between June 2022 and February 2024, could alleviate pressure on major cities.
Financial incentives through IHAP could encourage this redistribution.
Public-Private Partnerships: Immigration Minister Marc Miller previously floated the idea of buying hotels to convert them into permanent housing facilities with on-site services.
While controversial, this model could offer a more affordable alternative to leasing rooms.
Balancing Compassion and Costs
Canada’s decision to end the refugee hotel program is a pivotal moment in its immigration journey.
The $1.2 billion spent over seven years underscores the challenges of managing a surge in asylum claims while maintaining public support.
As the September deadline looms, the government must navigate a delicate balance between fulfilling its humanitarian obligations and addressing domestic concerns about cost and capacity.
For asylum seekers, the end of the program could mean newfound independence or increased vulnerability, depending on the success of transition efforts.
For Canadians, it raises critical questions about the future of immigration policy in a country known for its compassion but strained by economic realities.
Will the government rise to the challenge with bold, innovative solutions, or will the $1.2 billion hotel bill become a symbol of a system in crisis?
Stay updated with CTC News.