Canada Eyes New Policies to Attract Tech Talent Affected by U.S. H-1B Visa Fee Hike
Prime Minister Mark Carney has announced that Canada will explore new immigration measures aimed at attracting highly skilled tech workers impacted by the United States’ recent H-1B visa fee increase.
Carney revealed these plans during a press briefing in the United Kingdom on September 27, 2025, following the Global Progress Action Summit, signalling Canada’s readiness to capitalize on shifting U.S. immigration policies.
Key Highlights of Canada’s Plan
- H-1B Visa Fee Shock: On September 19, 2025, U.S. President Donald Trump signed a proclamation introducing a $100,000 fee on new H-1B visa applications.
- Impact on U.S. Tech Industry: The sharp fee increase is expected to deter U.S. companies from hiring skilled foreign workers, particularly in the technology sector, which relies heavily on H-1B visa holders.
- Canada’s Opportunity:
- Carney emphasized that the U.S. decision presents a unique chance for Canada to attract highly skilled professionals who may now look elsewhere.
- “These are people with lots of skills, enterprising, and willing to move to work,” Carney stated.
- He confirmed that Canada will present a “clear offering” to make immigration easier for affected workers.
- Earlier Remarks: Carney made similar comments on September 22, 2025, in a speech at the Council on Foreign Relations in New York, where he highlighted the need to retain top AI and research talent who often choose the U.S. over Canada.
Canada’s Existing Pathways for Tech Talent
Canada already has a strong framework to welcome foreign tech professionals, including several fast-track programs for work permits and permanent residency.
| Pathway/Program | Key Features | Benefit for Tech Workers |
|---|---|---|
| Temporary Foreign Worker Program (TFWP) | Requires a Labour Market Impact Assessment (LMIA) to ensure hiring doesn’t negatively affect Canadian workers. | Includes the Global Talent Stream, which offers two-week processing for tech-related occupations. |
| International Mobility Program (IMP) | LMIA-exempt work permits for certain categories. | Includes the Innovation Stream (launched Sept 2024), giving workers with offers from Global Hypergrowth employers a fast LMIA-free permit. |
| H-1B Open Work Permit (Tech Talent Strategy) | Launched July 2023, allowing U.S.-based H-1B holders to apply for a Canadian work permit. | Hit its 10,000 application cap in one day, showing strong demand. |
| Intra-Company Transfer (ICT) | Enables multinational firms to move executives or specialized staff to Canadian offices. | Allows rapid relocation of key employees with minimal paperwork. |
| Express Entry – STEM Category-Based Draws | Points-based PR system with special draws for STEM professionals. | Lower CRS cut-offs for eligible STEM occupations, improving PR chances. |
Potential New Measures to Be Announced
While details of the new plan have not yet been released, Carney indicated that Canada will create additional incentives to attract workers who might otherwise have chosen the U.S.
Possible measures could include:
- Expanded Innovation Stream permits with more eligible employers.
- Higher annual caps for H-1B holders applying for Canadian work permits.
- Faster Express Entry draws specifically for tech professionals impacted by U.S. policies.
- Additional permanent residency pathways for STEM graduates and professionals.
Why Canada is Poised to Benefit
- Global Tech Demand: Canada’s growing tech hubs in Toronto, Vancouver, Montreal, Calgary, and Waterloo are seeking thousands of skilled workers in AI, cybersecurity, and software engineering.
- Favorable Immigration Climate: Canada’s work permit programs and permanent residency options are faster and more flexible compared to the U.S., even after recent processing delays.
- Direct PR Pathways: Skilled workers can move from a temporary work permit to permanent residency through Express Entry, Provincial Nominee Programs (PNPs), or employer-sponsored streams.
Canada’s Tech Talent Strategy at a Glance
Canada’s Tech Talent Strategy, launched in 2023, laid the groundwork for attracting global innovators.
Key initiatives include:
- H-1B Open Work Permit Pathway: Special one-time program that quickly reached capacity.
- Innovation Stream (IMP): LMIA-free permits for employees of eight designated hypergrowth companies.
- STEM Category Express Entry Draws: Prioritizing occupations like software engineers, data scientists, and cybersecurity specialists.
Key Takeaways
- Canada is preparing new immigration incentives to capture tech talent deterred by the U.S. H-1B fee hike.
- Existing programs such as the Global Talent Stream and Innovation Stream already provide fast, flexible pathways for foreign professionals.
- Skilled workers can leverage Canada’s work-to-PR route, making it an attractive alternative for those facing barriers in the United States.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
