Canada to launch accelerated pathway for H-1B holders as part of suite of measures to attract skilled workers

The federal government has announced plans to recruit international talent and improve foreign credential recognition in the 2025 Budget.

Here’s a look at some of the key highlights.

A new pathway for H-1B visa holders

The 2025 budget states that the government is planning to launch an accelerated pathway for H1-B visa holders.

The measure has been announced to “strengthen Canada’s innovation ecosystem, address labour shortages, and attract top talent in healthcare, research, advanced industries and other key sectors.”

This measure is in line with Mark Carney’s recent statements on attract tech talent to Canada, primarily those who have been impacted by the United States H-1B fee hike.

Launch of the International Talent Attraction Strategy and Action Plan

The 2025 Budget proposes a targeted, one‑time initiative to recruit 1,000+ highly qualified international researchers to Canada and invest up to $1.7 billion in related measures.

These measures include providing funding for the following:

• To launch an accelerated research Chairs initiative to recruit international researchers to Canadian universities ($1 billion over 13 years, starting 2025–26, to Natural Sciences and Engineering Research Council, Social Sciences and Humanities Research Council, and Canadian Institutes of Health Research);
• To help these Chairs have the equipment they need to conduct research in Canada ($400 million over seven years, starting 2025–26, to the Canada Foundation for Innovation);
• To enable top international PhD students and post‑doctoral fellows to relocate to Canada ($133.6 million over three years, starting 2026–27); and
• To help universities recruit international assistant professors (up to $120 million over 12 years, starting 2026–27).

Further details on these measures will be announced in the coming weeks.

Establishing the Foreign Credential Recognition Action Fund

Budget 2025 proposes $97 million over five years (starting 2026–27) for Employment and Social Development Canada (ESDC) to establish the Foreign Credential Recognition Action Fund.

This aims to help ESDC work with provinces and territories to improve foreign credential recognition, with a special focus on health care and construction.

Funding would come from existing departmental resources.