Canada plans two new PR pathways in 2026 with fast-track routes for in-country workers

Canada is gearing up for a significant overhaul of its permanent residency system in 2026, with the federal government signalling a decisive shift toward applicants who are already living and working in the country. Policy signals in the Immigration Levels Plan 2026–2028 and recent budget commitments point to two major PR pathways that could reshape how temporary residents and foreign professionals transition to permanent status.

The proposed changes centre on a large-scale transition route for temporary residents in Canada and a fast-tracked permanent residency pathway for US H-1B visa holders. Together, they highlight Ottawa’s intention to prioritise in-country talent and address skill gaps more efficiently.

Temporary resident to permanent resident pathway

Canada is preparing to relaunch a national transition initiative for temporary residents, following a commitment outlined in the Immigration Levels Plan 2026–2028. The plan is to accelerate the conversion of up to 33,000 work permit holders to permanent residence across 2026 and 2027.

The pathway is expected to focus on individuals who have already established strong ties in Canada, those who are actively working, paying taxes, contributing to key sectors of the economy and embedded in local communities. It would mark the second major nationwide transition effort after the highly popular 2021 TR to PR programme, which reached its cap on the very day it opened.

While full eligibility criteria have not yet been released, official budget language describes the measure as a “one-time” effort to fast-track PR for up to 33,000 workers. That wording leaves open two possibilities: the launch of a standalone PR stream, or faster processing and targeted draws under existing immigration programmes. There is also the chance that the initiative may be implemented internally by Immigration, Refugees and Citizenship Canada rather than as a formally branded programme.

Despite the uncertainty, sector expectations remain high that a capped intake-based pathway will open, especially given political pressure to reduce the number of long-term temporary residents.

Accelerated PR route for H-1B visa holders

The second major pathway expected in 2026 targets holders of US H-1B visas. Announced in the 2025 federal budget, the accelerated PR route is designed to attract highly skilled professionals from the United States, particularly in technology, healthcare, engineering, scientific research and other innovation-driven sectors.

The initiative builds on Canada’s 2023 H-1B pilot, which offered open work permits to eligible applicants living in the US with valid H-1B status. That pilot, capped at 10,000 applications, was filled within hours—highlighting both the scale of interest and the alignment between Canada’s labour shortages and the skills of H-1B workers.

Officials have indicated that the 2026 pathway will be more structured and competitive than the 2023 pilot, though exact eligibility rules and intake timelines are yet to be announced.

Documents applicants should prepare early

Prospective applicants are advised to begin assembling key documents well in advance. These include valid language test results from approved providers, police certificates for all relevant countries, proof of education such as ECAs for foreign degrees, and detailed employment documentation. Travel histories, identity documents, certified translations and records for accompanying family members may also be required.

Language test results must be less than two years old on the day of application, while ECAs are valid for five years. Police certificate timing rules vary by country and are a common cause of delays.

Employment reference letters, pay slips and contracts must clearly outline job duties, hours, salary and dates of employment, and must be issued by employers, not copied from occupation codes.