Citizenship Reform Deferred to 2026 as Parliament Fast-Tracks Bill C-3
Canada Delays Citizenship Act Reform to 2026 while Parliament Rushes to Finish Bill C-3
Canada’s plan to reform its citizenship laws was pushed back once again, after the Ontario Superior Court granted a new extension allowing the federal government until 20 January 2026 to implement long-awaited reforms. The move increases pressure on Ottawa to finalize changes to rules that have limited the ability of Canadians born abroad to transmit citizenship to their children.
The latest extension deepens a years-long effort to resolve legal and policy gaps linked to the First-Generation Limit, a restriction that courts have declared is inconsistent with the Charter.
A Renewed Effort to Replace First-Generation Limit
For over a decade, the FGL has barred many Canadians living abroad from passing on their citizenship to children born outside Canada, unless those children were of the first generation born abroad. Critics say the rule has divided families, treated some Canadians differently than others, and does not account for the realities of global mobility.
In this respect, Bill C-3 is aimed at abolishing the FGL in favour of a more updated legal framework of “substantial connection” with Canada and permanently resolving all these concerns. If adopted, the bill would:
- Allow citizenship by descent to flow beyond the first generation.
- Restore citizenship to those who lost it due to outdated legislative requirements
- Correct long-standing inconsistencies that have forced many families into legal uncertainty
Sharp Decline in Temporary Resident Admissions
In a major policy shift, the federal government has announced plans to substantially reduce the number of temporary resident admissions beginning in 2026:
| Category | 2025 Target | 2026 Target | Change |
|---|---|---|---|
| Total Temporary Residents | 673,650 | 385,000 | ↓ 43% |
| International Students | 305,900 | 155,000 | ↓ 49% |
| Temporary Foreign Workers | 367,750 | 230,000 | ↓ 37% |
While these figures represent a significant numerical reduction, officials indicate that the adjustment aims to bring goals in line with realistic processing capacity rather than actually slashing immigration. In fact, statistics for the first eight months of 2025 already indicate that actual admissions have lagged behind planned numbers, reaching just 42% for temporary foreign workers and 29% for students thus far.
Why the Deadline Changed Again
In its written decision, the Ontario Superior Court also recognised that the government has made tangible progress towards the advancement of the bill, even faster than expected. Because of this, the court agreed to grant one last period of additional time.
While the federal government originally requested an extension into April 2026, following further dialogue with the court, it revised its request to one for a shorter period ending in January 2026-a sign, presumably, of greater confidence in the momentum of the legislation.
Status of Bill C-3 in Parliament
Parliament has already advanced Bill C-3 through several critical stages: it has passed all three readings in the House of Commons and is presently under consideration by the Senate, during which time the Standing Committee on Social Affairs, Science and Technology, or SOCI, is deliberating on the bill. Before the bill becomes a law, it shall:
- Complete committee review in the Senate
- Undergo a final reading in the Senate
- Receive Royal Assent
Any amendments added by the Senate would need to be approved by the House of Commons, but lawmakers have indicated a willingness to avoid extended holdups.
Temporary Citizenship Pathways Remain Available
While Parliament works on the legislation, the federal government’s interim process, which was introduced early in 2025, remains the avenue available for those impacted by the First-Generation Limit. According to the interim rules, eligible applicants could request a discretionary grant of citizenship; this discretionary grant allows IRCC to approve cases based on humanitarian or exceptional reasons. Those who would be eligible may include:
- Individuals born overseas or adopted overseas before 19 December 2023, and limited by the FGL.
- Children born abroad on or after that date whose Canadian parent meets the “substantial connection” standards proposed for Bill C-3
- Persons born before 1 April 1949 who were affected by previous versions of the law
- Applicants who lost their citizenship through the former retention provisions of the Citizenship Act
These interim options will automatically expire once Bill C-3 becomes law.
Will the Government Meet the New Timeline?
This round of extensions marks the fourth time the government has gained more leeway to finish the legislative overhaul. But unlike previous delays, this one appears more promising for several reasons:
- The bill has reached a more advanced parliamentary stage than previous attempts.
- The government/applicant voluntarily reduced the length of the extension that it requested.
- Officials have said time and again that they expect the law to take effect before the end of 2025.
Immigration Minister Diab has also explained that the federal government expects modest but steady demand once the new regulations are in force. He estimates that eventual applications could reach the “tens of thousands,” mostly involving children born abroad to Canadian parents.
Tracing the Road to Bill C-3
The effort to remove the First-Generation Limit has been multi-faceted and long-ranging:
- The FGL was introduced in 2009 and immediately raised constitutional concerns.
- The Ontario Superior Court struck down the rule in December 2023.
- In response, the government introduced Bill C-71 in 2024. It died when Parliament was prorogued.
- Bill C-3 was tabled in June 2025 as the government's new legislative solution.
Now, with a fixed deadline at the beginning of 2026, the government is under renewed obligation to deliver a permanent fix.
4. Fewer Opportunities Through Express Entry
Express Entry activity has also cooled in 2025. Comparing January–October totals:
- 2024: 90,835 Invitations to Apply (ITAs)
- 2025: 81,485 ITAs
That is a reduction of 9,350 invitations. This includes the exclusion of draws based on categories in STEM in the year 2025, compared to 4,500 STEM invitations that were issued the previous year.
Key Questions for the Upcoming Plan
The commitment suggests yes, but actual numbers will reveal how strictly it is enforced.
With pressure to bring the share below 5% of the population, will student and worker permit caps tighten further?
Provinces may argue for greater allocations reflecting regional labor and demographic needs.
In particular, under Express Entry or provincial nomination, emphasizing skills, region, and language.
Housing, healthcare, and labor market absorption remain critical constraints. Reports flagged risks of population decline and housing gaps under previous levels.
1. Percentage Reduction of Temporary Resident Population
Surplusing is one of the government’s key objectives, and it is focused on reducing the share of temporary residents among the population of Canada currently. Temporary residents currently make up roughly 7% of the population, and the strategy aims to bring it down to 5% by the end of 2026.
This step is a sign of growing concern over the impact of short-term residents on rental vacancy shortfalls, utilization of the health system, and provincial demands for infrastructure. By providing a particular numerical limitation, Canada hopes to better manage growth while providing those who immigrate with doors opening to permanent residency or other sustainable options, rather than remaining indefinitely within short-term limbo.
What Comes Next?
Bill C-3 could dramatically reshape how Canada recognises citizenship for children born outside the country once lawmakers complete a review on time. It would provide clearer pathways for multigenerational families that live abroad and give many individuals who spent years stuck in uncertain legal status access to the citizenship they had long sought. Until then, interim measures are the only bridge for the families affected by the First-Generation Limit.
Looking Ahead
When the 2026-2028 Plan is released, the numbers themselves will matter less than the underlying signals: which streams are growing, which are shrinking, and how the government is prioritizing settlement, region, and skills.
Canada appears to be shifting from high-volume immigration towards a more calibrated, strategic intake – one that balances labor market needs, infrastructure capacity, and community integration. For anyone watching Canada’s immigration policy, the next Plan will offer a window into how the country intends to shape its demographic and economic future.
