Canada’s immigration system has gone through major changes during Lena Metlege Diab’s first year as immigration minister.

Since taking office on May 13, 2025, Diab has introduced policies that focus more on regional immigration needs, stricter asylum rules, and faster management of temporary residence programs.

Under Prime Minister Mark Carney’s government, Immigration, Refugees and Citizenship Canada (IRCC) has shifted towards a more targeted immigration system. Instead of using one broad national approach, the government is now focusing more on regional labour shortages and specific occupations.

At the same time, the federal government has also introduced reforms affecting study permits, work permits, Express Entry selection, and refugee claims.

Regional Immigration Became A Bigger Priority

One of the biggest changes under Diab has been the stronger focus on provincial immigration programs.

The 2026 Immigration Levels Plan increased the number of permanent resident admissions through provincial programs by 66%.

Under the new plan, provinces received a target of 91,500 permanent resident admissions for 2026. This was a major increase compared to the previous target of 55,000 under former immigration minister Marc Miller.

At the same time, the federal government slightly reduced its own direct economic immigration targets.

Federal permanent residence admissions targets dropped to 109,000 for 2026, compared to 124,680 in 2025.

However, the overall economic immigration target still increased slightly:

  • 232,150 for 2025; and
  • 239,800 for 2026.

This shows the government is not reducing economic immigration overall. Instead, it is giving provinces more power to select workers based on local labour needs.

Through the Provincial Nominee Program (PNP), provinces can choose foreign workers with skills needed in their local economies.

British Columbia is one example of this new approach. The province has dedicated most of its 2026 nomination spaces to:

  • Healthcare workers
  • Skilled trades workers
  • Entrepreneurs
  • High-economic impact candidates

This regional strategy is very different from the more centralized immigration model used in previous years.

Rural Communities Received More Attention

Rural immigration has also become a major focus under Diab’s leadership.

The federal government continued supporting programs designed to bring workers into smaller communities facing labour shortages.

Programs like the Rural Community Immigration Pilot (RCIP) and the Francophone Community Immigration Pilot (FCIP), first introduced under Marc Miller in early 2025, remained important under the new government.

One of the biggest developments was the launch of the “In-Canada Workers Initiative.”

This special initiative aims to transition thousands of temporary workers living in rural Canada to permanent resident status.

The plan was first mentioned in Budget 2025 and later confirmed in the Immigration Levels Plan.

For months, very few details were available. However, in March 2026, Diab confirmed during an interview that the initiative had already started.

In April 2026, Diab clarified that the program would mainly support workers living in rural areas rather than large cities.

More details were finally released on May 4, 2026.

According to IRCC, workers generally need at least two years of experience living in a smaller community to qualify.

Part of the initiative also focuses on speeding up permanent residence applications already submitted by rural workers through programs like:

  • Provincial Nominee Program (PNP)
  • Atlantic Immigration Program (AIP)

The government plans to transition:

  • 20,000 temporary workers to permanent residence in 2026; and
  • 13,000 more workers in 2027.

IRCC already reported that 3,600 workers were transitioned during January and February 2026 alone.

Rural Employers Received More Flexibility

The federal government also introduced temporary changes under the Temporary Foreign Worker Program (TFWP).

These changes are designed to help rural employers facing worker shortages.

Normally, employers can only fill up to 10% of their workforce through the low-wage stream of the TFWP.

Under the new temporary measures, eligible employers can now hire up to 15% of workers through the low-wage stream.

Some employers are also allowed to keep their current number of low-wage temporary foreign workers even if they are already above the standard limit.

These temporary rules apply from April 1, 2026 to March 31, 2027.

The measures currently cover rural employers in:

  • British Columbia
  • Manitoba
  • New Brunswick
  • Nova Scotia
  • Quebec

The government says these changes are meant to help businesses continue operating in smaller communities struggling to find workers locally.

Express Entry Became More Targeted

Another major shift under Diab has been the creation of highly targeted Express Entry categories.

Since May 2025, IRCC introduced five new Express Entry categories:

  • Physicians with Canadian work experience
  • Senior managers with Canadian work experience
  • Researchers with Canadian work experience
  • Transport occupations
  • Skilled military recruits

These categories are much smaller and more specialized than earlier Express Entry categories.

For example:

  • Healthcare and social services includes 37 occupations
  • Trades includes 25 occupations
  • STEM includes 11 occupations

The newer categories are much narrower and often include four occupations or fewer.

This allows IRCC to target very specific labour shortages instead of holding large general draws.

So far, IRCC has already held draws for some of the new categories.

The department invited:

  • 250 senior managers
  • 391 physicians

This is very different from Canadian Experience Class (CEC) draws, which often invite between 2,000 and 8,000 candidates at once.

The government’s goal appears to be creating a more precise immigration system focused on Canada’s most urgent workforce gaps.

Work Experience Rules Became Stricter

At the same time, IRCC also increased work experience requirements for category-based Express Entry selection.

Previously, candidates only needed six months of continuous experience in an eligible occupation.

Now, candidates need:

  • One full year of experience; and
  • The experience can be non-continuous.

Express Entry remains Canada’s main immigration system for skilled workers outside Quebec.

Each year, around 100,000 permanent residents are selected through Express Entry.

Candidates first create profiles and enter the Express Entry pool. IRCC then holds draws and invites candidates with the strongest scores or those matching targeted categories.

Temporary Residence Programs Were Simplified

Alongside permanent residence reforms, Diab’s government also made several changes to simplify temporary residence programs.

In January 2026, IRCC removed the Provincial or Territorial Attestation Letter (PAL/TAL) requirement for master’s and doctoral students.

These students make up a smaller portion of overall international student admissions and are often already limited by university capacity.

The government also introduced faster study permit handling for doctoral students.

Eligible PhD students can now receive study permits within two weeks in some cases.

Co-Op Work Permit Rules Changed

In April 2026, IRCC announced another important change for international students.

Students participating in co-op placements, internships, or practicums no longer need separate co-op work permits.

Eligible students now only require a valid study permit with work authorization conditions.

This move reduces paperwork for both students and schools.

Many colleges and universities had long argued that separate co-op permits created unnecessary delays and confusion.

Work Permit Extension Rules Were Updated

IRCC also changed rules connected to maintained status for workers.

Previously, workers waiting for decisions on work permit extensions received WP-EXT letters valid for 180 days.

These letters act as proof that workers can continue working legally while waiting for a decision.

However, because work permit applications were taking much longer to finalize, many workers needed to request second letters.

Under Diab’s reforms, WP-EXT letters are now valid for 365 days instead of 180 days.

This change gives workers more stability while their applications remain under review.

Special Policies Were Extended

The federal government also extended temporary policies for certain foreign nationals already in Canada.

Under Diab’s leadership, open work permit extensions for Iranian and Ukrainian nationals were extended until March 2027.

The policies include:

  • Revised temporary public policy for nationals of Iran in Canada as temporary residents; and
  • Temporary public policy supporting Ukrainians and their family members.

These policies continue Canada’s humanitarian support measures introduced in earlier years.

Bill C-12 Introduced Major Immigration Reforms

One of the most important developments during Diab’s first year was the passage of Bill C-12.

The bill introduced stricter asylum measures and expanded government powers over immigration administration.

Under the new asylum rules:

  • Claims submitted more than one year after entering Canada can be refused; and
  • Refugee claims may stop being reviewed if claimants voluntarily return to the country they fled from.

The law also gave the federal government stronger executive powers over immigration programs.

The government can now:

  • Stop accepting certain applications
  • Pause or end application review
  • Change conditions attached to immigration documents
  • Apply new conditions to temporary residents

Supporters say these changes will help IRCC manage large application volumes more efficiently.

Critics, however, have raised concerns about transparency and fairness.

Fraud Concerns Also Influenced Policy

A report released by Canada’s auditor general on March 23, 2026 highlighted serious concerns around immigration fraud.

The report stated that more than 153,000 study permits were flagged for possible fraud between 2023 and 2024.

Before Bill C-12, officers reportedly only had enough resources to investigate around 4,000 cases.

The government says stronger powers are needed to better manage fraud risks and protect the immigration system.

More Immigration Changes May Still Come

IRCC is also consulting on several additional reforms that may reshape Canada’s immigration system even further.

One of the biggest proposals involves replacing Canada’s three existing Express Entry programs with one simplified program.

Under the proposed model, candidates would need:

  • A high school diploma or equivalent
  • Canadian Language Benchmark (CLB) 
  • One year of work experience within the last three years

IRCC is also considering major changes to the Comprehensive Ranking System (CRS).

Possible changes include:

  • Extra points for high-wage occupations
  • The return of job offer points for higher-paid workers
  • Better recognition for trade qualifications
  • Changes to some current scoring factors

International Student Rules Could Change Further

IRCC also proposed more changes for international students and graduates in April 2026.

The proposed reforms include:

  • Expanded work authorization for students waiting for study permit extension decisions
  • More work flexibility for graduates waiting for post-graduation work permit decisions
  • Removing study permit requirements for some apprentices
  • Standardized employment rules during academic breaks

Consultations on most of these proposals began this spring.

As Canada continues balancing labour shortages, housing pressures, fraud concerns, and regional workforce needs, Diab’s first year has already marked one of the busiest periods of immigration reform in recent years.

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