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Mayors

Toronto Heads for Showdown with Federal Government Over Refugee Shelter Funding

Strategic Insights

— 2 min read

Toronto Mayor Olivia Chow has issued a stark warning, stating that the federal government's latest offer on refugee shelter funding will leave the city over $100 million short. This shortfall could lead to a repeat of the desperate scenes two years ago when asylum seekers slept on downtown sidewalks. Chow emphasized that providing safe shelter for refugee claimants is a federal responsibility, and the city and province cannot shoulder the cost. She urged council members to convey to their MPs that the federal government should fund 95% of municipalities' costs for housing asylum seekers, a request made by the Ontario Big City Mayors this week.

Key Takeaways:

  • The federal government's offer to pay only 39% of the requested $671 million over the period of January 2025 to March 2027 would leave Toronto with a $107-million shortfall this year.
  • The city would be forced to stop or delay plans to establish 250 new spaces for asylum seekers and create a case management system intended to reduce the time that refugee claimants stay in shelters.
  • As of this month, there were about 3,500 refugee claimants in the system, about 40% of all clients, with the number of refugee claimants housed in Toronto shelters having increased more than tenfold since September 2021.
  • Toronto staff are projecting that if the city cannot secure additional funding, it would have fewer shelter spaces to take in other clients, including those living in encampments, and would take longer to wind down controversial and costly shelter hotels that are currently home to about 2,000 refugee claimants.
  • Loly Rico, founder of Toronto's FCJ Refugee Centre, stated that all three levels of government should fund refugee supports, but the "vast majority" should come from Ottawa, which controls the immigration system.
  • According to a briefing note, in the past, the Interim Housing Assistance Program (IHAP) has provided 95% of funding for the city's costs, but earlier this month IRCC informed the city it would provide only 39% of the requested $671 million over the period of January 2025 to March 2027.

Statistics:

  • $671 million: The amount requested by Toronto for refugee shelter funding over the period of January 2025 to March 2027.
  • $261 million: The amount offered by IRCC, which is 39% of the requested funding.
  • $100 million: The amount by which Toronto expects to be shortchanged.
  • 250: The number of new spaces for asylum seekers that the city plans to establish.
  • 6,500: The peak number of refugee claimants housed in Toronto shelters per night, reached in August 2024.
  • 3,500: The number of refugee claimants in the system as of this month.
  • 40%: The proportion of all clients that are refugee claimants.

Sources:

  • Toronto Star (no date mentioned)
  • Letter from Mayor Olivia Chow to council members (obtained by the Toronto Star)
  • Briefing note attached to Chow's letter
  • Interview with Loly Rico, founder of Toronto's FCJ Refugee Centre (no date mentioned)
  • Ontario Big City Mayors (no date mentioned)
  • Immigration, Refugees and Citizenship Canada (IRCC) (no date mentioned)

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