Canada Signals Interest to Woo U.S. H-1B Visa Seekers

Prime Minister Mark Carney confirmed that the federal government is examining measures to draw skilled workers affected by the recently announced US$100,000 H-1B fee, with particular attention to technology professionals. The initiative comes amid concerns over policy uncertainty in the United States, positioning Canada as an alternative destination for specialized talent.

On This Page You Will Find

• Prime Minister Mark Carney’s remarks on U.S. H-1B visa changes
• Canada’s past efforts to attract skilled tech workers
• Legal and expert reactions to the US$100,000 H-1B fee
• Opportunities for foreign workers to move to Canada
• Challenges and limitations in Canada’s current immigration system

A precedent exists. When Ottawa launched a dedicated H-1B work permit stream in July 2023, the 10,000-application quota was exhausted in less than 48 hours. Thousands of eligible applicants were unable to secure a spot due to high demand.

Observers suggest that those currently considering H-1B status to the United States, should monitor developments closely in Canada and prepare their applications in advance to ensure they are ready before caps are reached, if the Canadian government unveils a new pathway.

Canada Eyes Skilled Talent Displaced by U.S. H-1B Visa Fee Hike

Speaking at the Council on Foreign Relations in New York, Prime Minister Mark Carney pointed to the U.S. visa changes as an opening for Canada to retain more of its homegrown and foreign-trained talent. Noting that “unfortunately, most of them go to the U.S.”, Carney said: “I understand you’re changing your visa policy. Maybe we can hang on to one or two of them.”

Later that week during a visit to the UK, he added that Canada is working on a “clear offering” for tech workers from the source countries who may have otherwise considered the U.S. for an H-1B visa.

President Donald Trump’s surprise move to introduce a US$100,000 application fee for new H-1B petitions has left many tech firms and skilled workers scrambling. Although the White House says current H-1B holders are exempt, immigration experts expect the policy to face legal challenges.

Nonetheless, the abrupt shift is widely seen as a deterrent for foreign graduates of U.S. universities who had hoped to remain in the country.  It is estimated there are currently around 95,384 international graduates completing STEM degrees at U.S. universities who have received employment authorization through the STEM Optional Practical Training (OPT) program in 2024—a critical precursor for many seeking to remain in the country and apply for H-1B visas.

Canada Urged to Act Quickly

Immigration experts and business groups say Canada has a golden opportunity to position itself as a welcoming alternative for displaced talent. Build Canada, a non-profit focused on economic growth, echoed that call. In a memo released this week, the group said “hundreds of thousands of highly skilled and highly paid H-1B professionals are now seeking a new home.” It argued that Canada’s proximity, time zone alignment, high quality of life and research excellence make it a “natural destination.”

There is precedent for this shift. A 2020 National Bureau of Economic Research study found that previous H-1B restrictions prompted U.S.-based multinationals to shift hires to countries like Canada. The study noted that Canada’s more open immigration policies had helped firms retain key staff abroad.

Canadian Policy Must Match the Moment

In July 2023, Canada launched a work permit program targeting H-1B holders already based in the U.S., offering 10,000 open work permits valid for three years. The stream filled in under 24 hours. Though it is unclear how many ultimately moved to Canada, lawyers say some clients relocated after struggling to renew their U.S. status.

But long-term success will depend on more than just work permits. Experts say Canada must streamline its permanent residence pathways if it wants to remain competitive as an alternative for this labour cohort.

“There’s a potential for Canada for sure,” said University of Waterloo economist Mikal Skuterud, “but we shouldn’t overstate it.” 

Canada also faces structural challenges. The delays in permanent residence processing remain a chronic concern.

Government Response and Options

Immigration, Refugees and Citizenship Canada (IRCC) has not yet announced a new dedicated stream in response to the H-1B changes. It pointed to existing pathways such as:

• The Express Entry system for skilled workers
• The Global Skills Strategy for expedited work permit processing
• Various Provincial Nominee Programs targeting tech talent

IRCC said it continues “to identify new solutions to attract the world’s brightest and best.”

If a new H-1B-related program launches, experts expect demand to again exceed available spots. Interested applicants are advised to monitor updates and prepare documentation in advance of program launch announcements.

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