GTA Immigrant Nonprofits Brace for Closures Amid Federal Funding Cuts: What Grant Seekers Need to Know

Hook: Federal Budget Cuts Threaten the Survival of Immigrant Service Nonprofits in the GTA

Nearly half of immigrant service organizations in the Greater Toronto Area (GTA) are preparing to shut down key programs following a wave of federal funding cuts. With a second, accelerated round of reductions set to slice 15% from departmental budgets over the next three years, new survey data reveal that 44% of these agencies anticipate closing programs and 68% expect to cut jobs—potentially 310 layoffs by 2028. The cuts specifically endanger advanced language training, employment support, school navigation, housing aid, and mental health services for thousands of refugees and newcomer families.¹

Context: Why These Cuts Matter for the Broader Funding Landscape

These reductions stem from two converging trends: the federal government’s decision in 2024 to lower immigration targets, resulting in fewer dollars channeled into resettlement and integration, and now a mandate for all federal departments to deliver 15% savings by 2028. Agencies in the GTA, many of which already operate on lean budgets, say this double hit jeopardizes services at a time when community demand actually remains high. The advanced language and employment programs most at risk are vital for helping newcomers settle, earn incomes, and avoid housing precarity.

Notably, a coalition of 48 organizations surveyed by United Way Greater Toronto, Ontario Council of Agencies Serving Immigrants (OCASI), and the City of Toronto found that over half expect major disruptions in service. The City of Toronto itself has called on the federal government to restore stable funding, warning that local integration and supports for refugees and immigrants could unravel.¹²³

Toronto and Peel region in particular face potential workforce and housing instability if immigrant families can’t access services that help them thrive. Jessica Kwik, director of the Peel Newcomer Strategy Group, warned of a “domino effect”—as employment barriers rise, so too will family instability, homelessness, and social exclusion.²

Impact: What This Means for Nonprofits, Researchers, and Small Businesses

Nonprofits: Agencies serving immigrants and refugees need to brace for program consolidation, layoffs, and—potentially—closures. The numbers are stark: about 44% expect to close programs, and 68% forecast layoffs, with programs in advanced language training and workforce integration hardest hit. If your organization works in these areas, you could see increased competition for a shrinking pool of federal grants.

Beyond funding, there are impacts on staff turnover and burnout, as service demand remains high but human resources shrink. With fewer organizations operating, clients (especially newly arrived refugees) will experience longer wait times, reduced support, and greater vulnerability to joblessness and homelessness.²⁴

Researchers: For those studying immigration and integration, expect data “shocks” as service availability plummets. This presents both a challenge and an opportunity to document the impact of funding lost—crucial for future advocacy and policy work.

Small businesses: Many immigrant service organizations are anchor partners for training, hiring, and workforce development programs that connect newcomers with local businesses. Reduced services could tighten local labor markets and slow the economic integration that small firms in Ontario rely on.

Action: Steps Grant Seekers Should Take Now

1. Mobilize Alternative Funding: With federal streams drying up, tap into provincial, municipal, and international funds. Monitor sources such as the Ontario Trillium Foundation, United Way, and private foundations that may step in to fill gaps.

2. Form Strategic Partnerships: Pool resources and capacity by partnering with other service providers, school districts, or municipal programs. Joint grant applications and shared-service models can increase competitiveness for limited dollars.

3. Advocate and Document: Rigorously document the impacts of funding losses—track waitlists, layoffs, service reductions, and client outcomes. Use this evidence to advocate for reinvestment and to bolster future grant proposals.

4. Prepare for Workforce Shifts: Plan for responsible program scaling-down: retrain or redeploy affected staff where possible, and work closely with local stakeholders to mitigate disruptions for clients.

Outlook: What to Watch for Next

Further details on the federal government’s implementation of the 15% cuts are expected within the week, according to OCASI leadership. Nonprofits and advocates are lobbying to stagger or flexibly apply reductions, aiming to avoid the most damaging front-line impacts. Toronto’s city council is watching the situation closely, but as of the latest reports, the federal government has not responded.¹⁴

Expect evolving landscapes for immigrant and refugee supports throughout 2026—and continued pressure on all organizations serving newcomers.

For up-to-date alerts on grant opportunities and tailored proposal strategies, explore Granted AI’s latest resources for nonprofits and grant seekers.

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