Toronto, Quebec in unique positions, but no federal commitment yet to send more money for asylum seekers: minister

Intergovernmental Affairs Minister Dominic LeBlanc says the federal government will continue to work with Toronto and Quebec to help address the influx of asylum seekers in those regions, but he wouldn’t say whether it will commit to sending the extra funding they’re asking for.

“We recognize that there are increased pressures across the country, but Ontario and Quebec carry a large proportion of this burden, so the Government of Canada will ensure that we continue to work with them,” LeBlanc told CTV’s Question Period host Vassy Kapelos in an interview airing Sunday.

Canada’s immigration system — and its connection to the housing crisis — has been a central focus for the federal government in recent weeks, notably after The Canadian Press reported public servants warned two years ago that ambitious immigration targets could jeopardize housing affordability.

Quebec Premier François Legault wrote a letter to Prime Minister Justin Trudeau this week stating the province is at a “breaking point” when it comes to the number of asylum seekers arriving in the province.

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He’s also asking that the federal government “reimburse” Quebec for the $470 million he says it spent in 2021 and 2022 on associated costs to welcome asylum seekers, including while they waited for work permits, and because the province had to create more classrooms to educate asylum seekers’ children.

LeBlanc posted a response to Legault’s letter on X, formerly known as Twitter, earlier this week, saying the federal government is taking Quebec’s concerns “very seriously.”

But LeBlanc in his statement also pointed out some of the money Ottawa has already sent to Quebec to help with the expenses, including $374 million between 2017 and 2020 for “services related to temporary accommodation for asylum seekers” and “$3.6 billion granted annually through the Canada Social Transfer.”

“I wanted to remind Quebecers that the Government of Canada has been very generous in supporting Quebec, (which) has done a great deal to welcome asylum seekers,” LeBlanc said, adding Quebec is a “valuable partner” and that Finance Minister Chrystia Freeland is working with her provincial counterparts to find an agreement.  

LeBlanc also highlighted the more than $700 million the federal government sends to Quebec for “the annual immigration transfers for reception and integration,” a deal exclusive to Quebec.

“No other province has that arrangement,” he said. “We'll continue to be generous with the government of Quebec because they are doing a heavy lift in terms of welcoming and assisting asylum seekers that arrive in Quebec.”

The City of Toronto is also asking for more money from the federal government — specifically $250 million to help cover the costs associated with asylum seekers — and threatening to increase property taxes if Ottawa doesn’t pay up.

LeBlanc wouldn’t say whether there are plans to send the funds to Toronto, but said he’s planning on meeting with Mayor Olivia Chow next week.

He also said while the Liberals are trying to address the country’s immigration numbers, they’re also working on an “urgent and separate track” to increase the housing supply.

“We've set immigration targets that we think are responsible and appropriate,” LeBlanc said.

“And there again, business groups across the country are urging us to bring new people to Canada as immigrants to fill labour market needs in big cities and small towns across the country,” he added. “We're working with provinces in that very space as well.”

LeBlanc said the federal government is weighing those needs with “infrastructure pressures, including housing” and is “prepared to do what's necessary on both sides of this equation.”

Immigration Minister Marc Miller also said on CTV’s Question Period last week that his government is considering imposing a cap on international students to help staunch some of the demand for housing.

When asked when that number may be announced, LeBlanc said he’s not aware of the immigration minister’s timeline, but that he’s sure Miller will have something to say “in due course.”

With files from CTV’s Question Period Senior Producer Stephanie Ha