Chow calls on feds to restore funding for refugee shelter program as city faces $107M shortfall

Toronto Mayor Olivia Chow is urging the federal government to reconsider a recent funding decision that she believes will negatively impact the city’s ability to provide shelter for refugees and asylum seekers.

In a letter addressed to council members, Chow expressed her concern that the city would need an additional $107 million this year to maintain its current level of emergency shelter for refugee claimants, as the federal government only offered 26 per cent of the funding requested through the Interim Housing Assistance Program (IHAP) for 2025.

For years, the federal program has been the primary source of funding for Toronto’s refugee response, covering 95 per cent of the city’s expenses. Chow emphasized that providing safe shelter for refugee claimants is a federal responsibility, and the city and province should not be burdened with the financial costs.

“We cannot turn our backs on refugees in need of shelter. It is our moral duty to ensure they are taken care of,” Chow stated in her letter.

The city has already spent most of its IHAP funding for the year, assuming that funding levels would remain consistent. With the sudden funding cut from the federal government, Chow stressed that the city cannot simply ask refugees to leave or fend for themselves.

“We are not the immigration department. It is not our legislative responsibility to settle refugees, but it is our moral obligation to provide them with shelter and support,” Chow reiterated.

In 2023, Toronto faced a crisis when asylum seekers were left to sleep on the streets due to the overwhelmed shelter system turning away nearly 300 individuals daily. University-Rosedale Coun. Dianne Saxe echoed Chow’s sentiments, emphasizing that the city cannot continue to bear the financial burden imposed by the federal government’s lack of support.

“We urgently need housing solutions for those living on the streets, and the federal government cannot keep neglecting their responsibility to provide adequate funding for refugee support,” Saxe stated.

The federal government’s Immigration Refugees and Citizenship Canada (IRCC) responded to the funding concerns, acknowledging the high demand for the IHAP program and the need for cost-effective and sustainable solutions. Moving forward, IRCC aims to focus on long-term capacity building and reducing costs while improving outcomes for claimants.

However, a recent briefing note to councillors highlighted the significant funding gap that could result in longer shelter stays for refugee claimants. The city may need to halt plans for additional shelter spaces and enhanced case management programs due to the lack of funding.

Ontario’s Big City Mayors have also joined in calling on the federal government to reverse the recent changes to the IHAP program and honor their commitment to reimburse municipalities for 95 per cent of expenses related to sheltering and supporting refugee claimants.

As the city grapples with the financial strain of supporting refugees and asylum seekers, Mayor Chow remains steadfast in her advocacy for adequate federal funding to ensure the well-being of those in need of shelter and support.