Toronto city council sounds alarm on planned federal cuts to shelter funding program

Toronto council is sounding the alarm this week after a new report highlights major federal funding cuts that will hurt the city's ability to help newcomers who can find themselves relying on local shelters and other services.

Gord Tanner, general manager of Toronto Shelter and Support Services, told councillors that the federal government's planned federal cuts to the Interim Housing Assistance Program (IHAP) will drop from 95 per cent this year to 75 per cent in 2026 and 50 per cent in 2027.

The federal program is the main source of funding for Toronto's refugee response, and reimburses 95 per cent of the city's expenses, the city says.

More than 12,000 people used the city's shelter facilities every day this winter, and 50 per cent of them were newcomers.  

Mayor Olivia Chow described the cuts as a "serious problem."

Toronto brings in the most immigrants anywhere in Canada, according to the city staff report. The federal funding cut means the city's ability to help those newcomers will be diminished, the new report said.

The report says the federal cuts are tied to levels in the immigration levels plan, with "a funding formula accounting for past arrivals and future admissions."

This situation is even more in flux with a federal election underway. 

"I hope that every party that is running takes this refugee housing settlement services seriously," said Chow. 

Chow's motions to ask the federal government not to reduce funding for refugees in shelters over the coming years, to expand the definition of asylum claimants, and to establish a refugee housing benefit were approved at council on Thursday. 

CBC Toronto has reached out to the federal government for comment.

Also on Thursday, Ombudsman Kwame Addo presented a report, originally released in December, that found the city's decision to stop allowing refugee claimants access to its shelter beds was anti-Black racism and  "poorly thought out, planned for, and communicated."

In presenting the report, Addo said he was proud of it and stood by his findings.

He urged council members to adopt his 14 recommendations for the city, which were previously denied by city manager Paul Johnson when the report was released.