Toronto Mayor Olivia Chow has called on the federal Liberal government to cover a $107 million shortfall in funding for emergency shelters amid a surge in refugee claimants.
In a letter to city councillors Chow stated, "The city will have to come up with an additional $107 million this year to continue to provide emergency shelter to refugee claimants at its current level."
Toronto requested $412 million through the federal Interim Housing Assistance Program (IHAP) for 2025, but Ottawa committed to funding only 26% ($105 million), leaving the city to cover the rest.
The shortfall threatens approximately 1,800 shelter beds and delays plans for 250 new spaces and a case management system. Refugee claimants now account for 40% of Toronto’s shelter population, rising from 530 in 2021 to 3,500 by August 2025.
Chow noted the gap equates to “the equivalent of more than a two per cent property tax hike.”
Chow urged councillors to lobby local MPs, citing a unanimous motion by Ontario’s Big City Mayors demanding Ottawa fund at least 95% of costs.
The federal government has provided $1.5 billion through IHAP since 2017, including $670 million to Toronto.