Federal government is moving away from expensive hotel accommodations for asylum seekers, moving to community based housing solutions as part of a major policy change that will reshape how Canada houses asylum seekers.While not completely eliminating hotel funding, Ottawa is dramatically scaling back its direct support for temporary hotel stays. As of March 2025, approximately 1,474 asylum seekers remain housed in seven hotels, with about 3,500 hotel beds maintained for emergency situations. However, secured funding for these hotel operations expires in September.The transition represents a significant change in approach after years of costly hotel arrangements that sparked public criticism. The government has issued notices to individuals seeking asylum, urging them to secure alternative housing arrangements. .This strategy has demonstrated its effectiveness, resulting in over 13,000 hotel departures between January 2024 and March 2025.Federal officials emphasize that hotel stays were always intended as short term emergency measures. The new direction focuses on sustainable, long term solutions through the renewed Interim Housing Assistance Program (IHAP), which received $1.1 billion over three years starting in 2024. .Sask NDP demands Sask Party MLA condemn Western independence movement.These funds target upfront costs, capital construction projects, and programs designed to help asylum seekers achieve “housing independence.”The program redesign includes establishing new reception centres in communities like Peel and Ottawa. The government is actively relocating asylum seekers to provinces that have community housing capacity, such as Newfoundland and New Brunswick..A significant aspect of the new approach involves cost-sharing arrangements with provinces and municipalities. Local jurisdictions must now contribute between 5% and 25% of accommodation costs in the first year, with their financial responsibility rising to 100% by 2027. .Christian artist Sean Feucht’s tour bus rammed near Montreal.This downloading of responsibility has drawn criticism from municipalities such as Windsor, ON, which expressed concerns about potential increases in homelessness as asylum seekers exit federally funded hotels.Immigration officials emphasize that the objective extends beyond cost savings to community integration for asylum seekers. .The newly implemented federal strategy seeks to establish pathways from temporary housing to permanent residences, to reduce public opposition to the high hotel costs.The shift comes as Canada continues to receive significant numbers of asylum seekers, particularly at unofficial border crossings. .Men banned from women’s Olympic events under new US rule.Although the federal government retains some hotel capacity for emergency situations, the primary focus has shifted toward sustainable housing infrastructure that can effectively accommodate both asylum seekers and Canadians.Municipal leaders across the country are now grappling with the financial implications of increased local responsibility for asylum seeker accommodation, even as they work to implement the new community based approach that federal officials believe will prove more effective in the long term.
