Budget 2025: What We Know So Far

Traditionally, the budget lands in the spring, setting out spending and tax priorities, while the Immigration Levels Plan follows in early fall, outlining how many newcomers Canada aims to welcome in the coming years.

This year, both will arrive together, a sign of how closely immigration, housing, labour, and economic growth have become linked. 

Although little is yet known about the new immigration targets beyond the notional levels set last year, we already have a glimpse of the priorities shaping Budget 2025. With both plans expected to drop tomorrow, we’re taking a look at why the timing has changed, why IRCC should have released their plans by November 1, and what we know so far about the budget 2025, where a strong focus on supporting Canadian workers is already emerging. 

Key Takeaways

• For the first time, Canada’s Immigration Levels Plan and federal budget will be released on the same day.
• The timing for the Budget release is new. In the past, it was released in the spring with a fall fiscal update.
• So far, it looks like Budget 2025 will have a big focus on supporting Canadian workers.
• The Budget will also set aside $97M for faster recognition of foreign credentials, a potential win for newcomers.

What Is the Budget and Why It’s Shifting to Fall

The federal budget is Canada’s economic blueprint, prepared by the Department of Finance to outline spending, taxation, and investment priorities for the year ahead. 

Historically, it’s been presented in spring, followed by a fall fiscal update. Starting with Budget 2025, that schedule is reversing. The budget will now be tabled (laid before parliament)  in the fall, and the economic and fiscal update will move to spring. 

According to the government’s Modernizing Canada’s Budgeting Approach announcement (October 2025), the change is designed to: 

• Provide greater predictability for provinces, territories, businesses, and investors ahead of the new fiscal year. 
• Align major infrastructure and housing investments with the construction season for faster project delivery. 

What We Know About Budget 2025 So Far 

Early releases from the Department of Finance make one thing clear: Budget 2025 will focus heavily on supporting Canadian workers, improving job mobility, and building a stronger, more adaptable labour force. 

1. Training the Next Generation of Builders 

The government will expand the Union Training and Innovation Program, strengthening apprenticeship opportunities in the Red Seal trades. The goal is to ensure Canada has the workforce to meet ambitious housing and infrastructure targets. 

2. Supporting Personal Support Workers 

A new five-year Personal Support Workers Tax Credit will let eligible workers claim a refundable tax credit of up to $1,100 per year. The measure targets provinces and territories without a bilateral agreement with the federal government to increase wages for personal support workers. 

3. Strengthening Worker Mobility 

To give workers more freedom to advance, the government will amend the Canada Labour Code to restrict non-compete agreements in federally regulated workplaces. Consultations will begin in early 2026. This will allow more freedom of movement between employees. 

4. Fast-Tracking Foreign Credential Recognition 

Budget 2025 allocates $97 million over five years to create a Foreign Credential Recognition Action Fund, working with provinces and territories to make the process faster and fairer – particularly in healthcare and construction, where labour shortages are most acute. 

5. Helping Workers Affected by Trade Disruptions 

A new reskilling and support package will help Canadians impacted by U.S. tariffs and shifting global markets through: 

• A digital jobs and training platform connecting workers to new opportunities. 
• $570 million in training support via Labour Market Development Agreements. 
• $382.9 million to launch Workforce Alliances and a Workforce Innovation Fund. 
• Temporary Employment Insurance (EI) measures for reduced-hours workers. 

Why the Budget and Immigration Levels Plan Are Being Released Together 

Releasing both the Budget and Immigration Levels Plan on the same day allows the government to present a coordinated vision for Canada’s future.  

The two are naturally connected: immigration can be used to fuel the labour supply, and the budget provides the resources to support it.  

There’s also a practical advantage. Both are major national announcements that, on their own, tend to dominate multiple news cycles. Releasing them together allows Ottawa to deliver a single, cohesive message about jobs, affordability, and sustainable development, allowing one to perhaps soften the blow of the other. 

Why IRCC Must Release the Immigration Levels Plan by November 1

By law, IRCC is required to table the annual Immigration Levels Plan in Parliament before November 1, or within 30 days if Parliament isn’t sitting at that time. 

Under Section 94 of the Immigration and Refugee Protection Act (IRPA), the plan must outline Canada’s immigration targets and results — including how foreign nationals are selected, cooperation with provinces, language profiles, the number of permanent and temporary residents admitted and projected, and a gender-based analysis of the Act’s impact. 

The requirement exists to ensure transparency and parliamentary oversight of immigration planning. According to the parliamentary calendar, Parliament was not sitting on November 1, which fell on a weekend, so the government may technically have up to 30 days to table the plan, potentially justifying the delay. Given this, the plan’s expected release alongside Budget 2025 appears to be a deliberate coordination for the reasons outlined above. 

As soon as the new immigration levels are released, we’ll share the facts and our in-depth analysis with our community. If you haven’t already, Join our community to be the first to know when the immigration levels plan is out.