Canada is preparing for a major overhaul of its citizenship framework, a move that is expected to benefit thousands of Indian-origin families and others born overseas. The reforms come as Bill C-3 – legislation aimed at fixing long-standing gaps in citizenship rules – has received royal assent, signalling Ottawa’s intention to move swiftly even though the law has not yet officially come into force. 

The country’s immigration minister Lena Metlege Diab said the reforms would correct systemic exclusions that affected families with children born or adopted abroad. “Bill C-3 will fix long-standing issues in our citizenship laws and bring fairness to families with children born or adopted abroad. It will provide citizenship to people who were excluded by previous laws, and it will set clear rules for the future that reflect how modern families live. These changes will strengthen and protect Canadian citizenship.”

Why the rule is changing

For years, Canada’s citizenship-by-descent rules have left many in limbo. A key provision introduced in 2009 – known widely as the “first-generation limit” – allowed citizenship to pass to children born abroad only if at least one parent was Canadian by birth or naturalisation. This effectively created a group described as “lost Canadians”, people who believed they qualified for citizenship but were excluded because their parent was also born overseas.

In December 2023, the Ontario Superior Court declared the provision unconstitutional. The federal government accepted the judgment and chose not to challenge it, acknowledging that the rule produced unfair outcomes for children of Canadians who themselves had been born outside the country.

Restoring citizenship and ending the second-generation cut-off

Bill C-3 tackles the issue often referred to as the “second-generation cut-off”, which prevents Canadian citizens born abroad from automatically transferring citizenship to their own foreign-born children. The reform reinstates citizenship to those who lost it under older laws and creates a new pathway that reflects contemporary family realities.

The Canadian Immigration Lawyers Association (CILA), which has strongly supported the bill, welcomed the reforms. “The second-generation cut-off created an unfair, second-class citizenship for Canadians born abroad. It discriminated based on national origin and forced many women to relocate to Canada just to give birth. Bill C-3 finally removes this unconstitutional barrier,” it said in its submission to a parliamentary committee.

The new ‘substantial connection’ test

Looking ahead, the legislation introduces a “substantial connection test”, which ensures that Canadian parents born abroad can pass citizenship to their foreign-born children if they have spent a minimum of 1,095 cumulative days in Canada before the child’s birth or adoption. The benchmark is aligned with citizenship standards in countries such as the United States, the United Kingdom, and Australia.

Immigration, Refugees and Citizenship Canada (IRCC) says the measure aims to make citizenship rules more equitable while safeguarding the integrity of Canadian citizenship.

Impact on Indian-origin families

Indian-origin Canadians – many of whom frequently relocate for work or have children born abroad – could see some of the biggest benefits. The revised rules will open doors for families who were previously barred due to the second-generation restriction, offering clarity and new routes to citizenship for children born overseas.

As Ottawa moves to modernise its laws, the reforms represent one of the most substantial shifts in Canadian citizenship policy in more than a decade – and a long-awaited correction for families across the world.

Timeline for implementation

The federal cabinet must still fix the official implementation date. A court has already extended the deadline for enforcement to January 2026, giving IRCC additional time to prepare administrative processes. Immigration experts anticipate a significant rise in citizenship applications once the law becomes operational.