IRCC Allocates $1.7 Billion in Settlement Funding for 2021-22

Now, other than the above-mentioned allocations in the memo, the IRCC allocated $650.3 million as a separate annual grant to Quebec to operate settlement services. Another $145.7 million was allocated to resettlement services. Overall, the IRCC has allocated $1,672.6 billion in providing settlement and integration services to newcomers across Canada. 

Why Wasn’t the Memo Released Publicly?

The memo highlights the allocation of funds to different provinces and territories decided by the National Settlement Funding Formula. Such memos were released publicly on the IRCC website in 2011. However, the IRCC abstained from sharing this information publicly due to the controversial nature of the process of allocating funding. Canadian provinces, territories, and settlement organizations are constantly negotiating with the IRCC on identifying the most appropriate level of funding based on the needs of their jurisdictions. 

The National Settlement Funding Formula calculates the funding level based on the average new immigrants expected to land in the jurisdiction in 3 years. Refugees are given additional weight given their unique settlement needs. This formula does not apply to Quebec. 

The IRCC decided the funding level for Quebec based on the formula outlined in the Canada-Quebec Accord relating to the Immigration and Temporary Admission of Aliens signed in 1991. Quebec received more settlement funding compared to any other province or territory. It also has more freedom and flexibility on how and where to use the funding. 

How Is Settlement Funding Per Capita Calculated?

The funding levels for 2021-22 are determined based on the number of immigrant landings in every province and territory in the last 3 years, that is, 2017, 2018, and 2019. The settlement funding per capita is as follows:

Ontario: $3,033

British Columbia: $2,671

Saskatchewan: $2,691

Alberta: $2,913

Manitoba: $2,862

Nova Scotia: $2,857

Prince Edward Island: $2,684

New Brunswick: $3,072

Newfoundland and Labrador: $3,428

Northwest Territories: $4,622

Nunavut: $16,432

Quebec: $13,541

According to the memo, smaller provinces receive additional funding to build their capacity and increase the scale of their services. This is the reason why provinces and territories with a low immigration rate have received high levels of funding, for example, New Brunswick, Newfoundland, and Labrador, Yukon, and Northwest Territories. 

Due to the generous settlement formula decided in the Canada-Quebec Accord, Quebec receives the highest level of settlement funding.

How Will the Settlement Services Be Affected by The Memo?

As demonstrated above, nearly half of the IRCC’s annual budget is allocated towards offering settlement services across Canada. Canada is the largest provider of settlement services in the world. However, the task of identifying the level of settlement funds to be allocated to different provinces and territories is still imperfect and leads to a lot of debate among the stakeholders of this process. 

Despite a low immigration rate, Quebec is the largest receiver of settlement funding. This is due to the settlement funding formula decided in the Canada-Quebec Accord in 1991. This formula was based on the expectation that the Quebec immigration levels would increase overtime to compensate for its aging population and declining birth rates. However, since the election of the Coalition Avenir Quebec (CAQ) Party in 2018, Quebec’s immigration level has consistently declined while its settlement funding has continued to increase annually. 

Due to low immigration levels to Alberta, New Brunswick, Prince Edward Island, and the Northwest Territories, the settlement funding to these provinces has also declined. Now, the IRCC recognizes the challenges these provinces are faced with due to decreased funding. That is why the IRCC will make a one-time transfer to Alberta to top-up their funding. This will ensure that Alberta continues to provide high-quality settlement services to its newcomers without having to scale back its operations. 

Given Canada’s Immigration Levels Plan for 2021-23 of inviting more than 401,000 new immigrants every year, the IRCC indicates the possibility of increasing the settlement funding level to all provinces and territories, except Quebec by another $100 million for the 2023-24 fiscal year.