Toronto city council sounds alarm on planned federal cuts to shelter funding program

CBC

27-03-2025

Toronto council is sounding the alarm this week after a new report highlights major federal funding cuts that will hurt the city's ability to help newcomers who can find themselves relying on local shelters and other services.
Gord Tanner, general manager of Toronto Shelter and Support Services, told councillors that the federal government's planned federal cuts to the Interim Housing Assistance Program (IHAP) will drop from 95 per cent this year to 75 per cent in 2026 and 50 per cent in 2027.
The federal program is the main source of funding for Toronto's refugee response, and reimburses 95 per cent of the city's expenses, the city says.
More than 12,000 people used the city's shelter facilities every day this winter, and 50 per cent of them were newcomers.
Mayor Olivia Chow described the cuts as a "serious problem."
Toronto brings in the most immigrants anywhere in Canada, according to the city staff report. The federal funding cut means the city's ability to help those newcomers will be diminished, the new report said.
The report says the federal cuts are tied to levels in the immigration levels plan, with "a funding formula accounting for past arrivals and future admissions."
This situation is even more in flux with a federal election underway.
"I hope that every party that is running takes this refugee housing settlement services seriously," said Chow.
Chow's motions to ask the federal government not to reduce funding for refugees in shelters over the coming years, to expand the definition of asylum claimants, and to establish a refugee housing benefit were approved at council on Thursday.
Council discusses ombudsman's report
Also on Thursday, Ombudsman Kwame Addo presented a report, originally released in December, that found the city's decision to stop allowing refugee claimants access to its shelter beds was anti-Black racism and "poorly thought out, planned for, and communicated."
In presenting the report, Addo said he was proud of it and stood by his findings.
He urged council members to adopt his 14 recommendations for the city, which were previously denied by city manager Paul Johnson when the report was released.
"I do not agree with the findings," Johnson wrote in a letter to Addo in December.
Among the 14 recommendations made by Addo, were: a clear process for documenting and communicating eligibility changes that affect refugee claimants, training for staff on the city's own anti-Black racism analysis tool and on housing as a human right, and strengthening accountability and oversight mechanisms to ensure decisions align with the city's previously-established commitments and policies.
Coun. Chris Moise thanked the ombudsman for his report findings at council on Thursday
"A Black man was writing this report, writing about the experiences of Black people who have been on the street, and having to come to council to talk about this issue from a distance, that's difficult," said Moise at the council meeting.
WATCH | Refugees slept on Toronto sidewalks:
Refugees forced to sleep outside after arriving in Canada
2 years ago
Duration 2:03
Refugees and asylum seekers say they are being forced to sleep outside because of a lack of housing and adequate shelter space in Toronto. According to city officials, up to 45 per cent of newcomers who call the shelter intake system get turned away.
In November 2022, the city decided to stop allowing refugee claimants access to general shelter system beds, the ombudsman report says.
Oddo said on Thursday that the city's decision to stop allowing refugee claimants access to the shelter system went against the Ontario Human Rights Code.
The city's decision was publicly announced six months later in May 2023. According to the report, staff and elected officials said at the time that refugee claimants would be referred to federal supports because of a lack of funding from the province and federal government.
In June 2023, CBC Toronto reported refugees were sleeping on Toronto streets after being turned away from the city's shelter system. Addo said in his report that the refugees were predominantly Black and from African countries.
A month later, city council amended its policy to ensure everyone "regardless of status" was able to access the shelter system when beds were available.
"It is unacceptable that people arrive in Canada and wind up on a sidewalk in the rain," said Councillor Gord Perks at council on Thursday. "It's unacceptable that the City of Toronto didn't have in place the correct tools to be able to manage that."