Canada Granted New Extension to Overhaul Citizenship Rules

Canada’s long-delayed effort to modernize its Citizenship Act has been given extra time once again, following a new ruling from the Ontario Superior Court of Justice. The court has moved the deadline for legislative changes to 20 January 2026, offering the federal government two additional months to finalize Bill C-3 – the legislation intended to eliminate the controversial First-Generation Limit (FGL) on citizenship by descent.

This marks yet another extension in a multi-year effort to rewrite a section of the Citizenship Act that courts have already deemed unconstitutional.

Also Read Canada Delays Citizenship Act Reform to 2026 while Parliament Rushes to Finish Bill C-3

Why Bill C-3 Matters

Bill C-3 aims to reform the rule that prevents many Canadians born abroad—who themselves have a Canadian parent born outside Canada—from automatically passing citizenship to their own children born overseas.

The First-Generation Limit, introduced in 2009, has created repeated legal challenges and has left thousands of families unable to secure citizenship for their children despite having strong Canadian ties.

If passed, Bill C-3 would:

  • Allow citizenship by descent to extend beyond the first generation
  • Introduce a “substantial connection” test for some applicants
  • Restore citizenship pathways for individuals who lost status under older retention rules

The change would directly impact families with multi-generational links to Canada who have lived, studied, or worked abroad for extended periods.

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What Led to the Extension?

In its latest decision, the Ontario Superior Court acknowledged that the federal government has made significant progress toward finalizing the new legislation. The bill has already cleared:

  • Three readings in the House of Commons
  • Two readings in the Senate
  • Committee review in progress

Judge Akbarali noted that the bill is advancing more quickly than earlier attempts, suggesting the law could potentially be enacted before the new January deadline.

The government had originally asked for an extension until April 2026, but later revised its request to January 2026 after further discussions with the court – a signal of increased confidence in completing the process sooner.

Where Bill C-3 Stands in Parliament

Bill C-3 is currently being reviewed by the Standing Committee on Social Affairs, Science and Technology (SOCI). The committee has the authority to suggest amendments before the bill returns to the Senate for final debate and approval.

Once the bill clears both chambers without further changes, it will receive Royal Assent and officially become law.

Interim Measures Still Apply

Until the new legislation comes into force, the federal government will continue operating under interim policies designed to help those affected by the First-Generation Limit.

These temporary measures, introduced in March 2025, allow certain individuals to request citizenship through a discretionary grant process. The opportunity extends to:

  • Children born or adopted abroad before 19 December 2023 who were restricted by the FGL
  • Children born or adopted abroad on or after 19 December 2023, if their Canadian parent meets the proposed substantial connection criteria
  • Individuals born before 1 April 1949 are affected by historical FGL provisions
  • People who lost citizenship due to the former retention clause under section 8 of the Citizenship Act

Applicants must request proof of citizenship and undergo a case-by-case assessment by IRCC. Urgent processing is available in specific situations.

These measures will remain valid only until Bill C-3 is officially enacted.

Will the Government Meet This Deadline?

This newest extension marks the fourth time the federal government has been granted more time to amend the Act. However, unlike past delays, several positive signs indicate that the January 2026 deadline may be achievable:

  • The legislation has progressed further in Parliament than earlier versions
  • The government’s most recent extension request was shortened, not lengthened
  • IRCC has publicly stated that the bill is on track and may be finalized by the end of 2025

Immigration Minister Diab has also clarified that, based on current forecasts, the government expects tens of thousands of people to eventually apply under the new rules, most of them children.

How Bill C-3 Evolved

The current legislation is the result of years of legal and parliamentary setbacks:

  • December 2023: Ontario Superior Court rules the FGL unconstitutional
  • 2024: The Federal government introduces Bill C-71, but it collapses when Parliament is prorogued
  • June 2025: Bill C-3 is introduced as a replacement
  • 2025–2026: Multiple extensions granted as Parliament moves the bill through required readings

Bill C-3 is now the most advanced legislative attempt to resolve the FGL issue since the rule was first introduced in 2009.

What Happens Next?

If Parliament completes its review and passes Bill C-3 without major changes:

  • The First-Generation Limit will be removed
  • A new framework for multi-generational citizenship will be established
  • Thousands of families will gain a direct path to citizenship for children born abroad

Until then, those affected can continue applying under the interim process.