If you have been keeping an eye on Canadian news lately, you will notice a flurry of headlines about immigration. The upcoming immigration updates come with many significant changes that we expect to impact temporary foreign workers and international students in the country. The federal government expects these policies to have a major impact on newcomers.
The government has made some massive announcements that are set to reshape the landscape of international students and temporary workers. Here’s more insight into the most notable immigration news to expect in the coming months with the 2026-2028 Immigration Levels Plan and budget.
Changes to Impact International Students in Canada
The rules are also changing for foreign students looking to study in Canada.
A Slashed Study Permit Cap
The federal government has, in the last two years, capped Canada’s number of study permit applications it accepts for processing in any given year. The latest Immigration Levels Plan cuts the target for new international students by nearly half, dropping from 305,900 in the previous plan to just 155,000 in 2026. Consequently, we can expect the study permit cap to be reduced significantly.
Then again, this year, Canada has fallen short of its targeted international student admissions. So, while halving the number of new international students to 155,000 in 2026, may make study permit applications more competitive on paper, many potential new students may not be significantly impacted by the cap.
Graduate Students Will Be Exempted From the Study Permit Cap
Another critical factor worth mentioning is the exemption of all graduate students from the anticipated study permit cap. As such, we can expect master’s and doctoral degree students in Canada to no longer require a Provincial or territorial attestation letter (PAL/TAL). This will make it easier for these students to get a study permit even with the study permit cap in effect, starting January 1, 2026.
Immigration, Refugees, and Citizenship Canada (IRCC) seeks to expedite the study permit application processing time for master’s and doctoral degree students. The permit will be inclusive of the applicants’ accompanying family members, allowing them to get their status papers in as little as two weeks.
Changes to Affect Temporary Foreign Workers in Canada
Tightened Eligibility Requirements on TFWP
Prime Minister Mark Carney hinted at changes to the Canadian Temporary Foreign Worker Program (TFWP) in September 2025. In his statement, the Prime Minister alluded that the TFWP needed a focused approach that targeted specific, strategic sectors in specific regions, ensuring all needs were met.
However, there’s still no clear strategy on how the TFWP will implement this new approach. In 2024, the government paused the processing of all Labour Market Impact Assessments, which temporary foreign workers in Canada need for their TFWP work permits. The pause was especially implemented in regions that reported an unemployment rate of over 6%.
In 2026, the latest Immigration Levels Plan also intends to slash the number of foreign workers (through TFWP) – from 82,000 to 60,000. This further proves the tightening of the program’s eligibility criteria for getting an LMIA, a prerequisite for getting the TFWP work permit.
