New Canadian Citizenship Rules Could Affect 570,000 Living In America

End of the First-Generation Canadian Limit

If you’re one of the approximately 570,000 Canadians living in the United States—whether among the 65,000 Canadians in California, 60,000 in Florida, or over 30,000 in states like Massachusetts, Michigan, New York, or Texas—the Canadian citizenship rules that have quietly governed your family for years are about to change significantly. With the passage of Bill C-3, Canada has approved the most significant update to citizenship by descent in over a decade—one that will impact not only Canadians in America but also globally mobile families from Europe to Asia to the Middle East.

A Long-Awaited Fix for “Lost Canadians”

In late November, Canada passed Bill C-3 – An Act to amend the Citizenship Act (2025). It received royal assent on November 20, 2025, and marks the biggest overhaul of citizenship rules since 2009, when the “first-generation limit” was introduced, unintentionally excluding thousands of people who should have been citizens. These individuals—known as “Lost Canadians”—include those born abroad to Canadian parents or grandparents but caught in gaps created by older laws, marriage rules, gender rules, or the 2009 reforms. According to the Parliamentary Budget Officer, at least 115,000 of these children born abroad will now qualify for citizenship. Many are in the United States.

When Bill C-3 officially comes into force—a date still to be confirmed—these individuals will be recognised as citizens automatically and retroactively. As the Canadian government described it: the reforms create “a modern, consistent path going forward” that acknowledges how mobile Canadian families have become.

How the New Bill C-3 Framework Works

Bill C-3 has two pillars—one that repairs the past, and one that governs the future.

1. Citizenship Restored Retroactively

Anyone excluded under the 2009 first-generation rules or older laws that similarly denied citizenship will automatically regain or acquire it once the bill becomes law. This includes adults living in the U.S. who grew up believing they were Canadian but often painfully discover otherwise.

2. A New Standard for Future Children Born Abroad

For children born or adopted outside ​of Canada after the law takes effect, citizenship transmission will depend on the parent’s connection to Canada:

• If the parent was born or naturalized in Canada:
  Citizenship continues to pass automatically, as before.
• If the parent was born or adopted abroad:
  Citizenship can be passed on only if the parent demonstrates a “substantial connection” to Canada—defined as at least three years of physical presence.

This model maintains Canada’s openness to globally mobile citizens while fostering strong generational ties.

What This Means for Canadians Living In America

The United States hosts the largest community of Canadians outside Canada. For many, these reforms will clear up long-standing questions; for others, it will encourage planning.

Children Born in the U.S. to Canadian-Born Parents

No change here. These children will continue to qualify automatically for citizenship by descent.

Second-Generation Canadians Born in the U.S.

This is the group most affected.

If a Canadian parent was also born abroad—common in long-term expatriate families—citizenship for future children will depend on whether the parent can demonstrate three years of Canadian residence at any point in their life. For Canadians who left as infants or grew up mostly in America, this may require collecting school, work, or tax records from their past Canadian residence or planning for future time in Canada before expanding their family.

Inter-Country Adoptions

Canadian parents abroad who adopt internationally will follow the same substantial-connection rule as biological parents. The goal is to create a single, consistent standard, although some adoptive families have raised concerns—especially for children fully integrated into Canadian households but lacking independent ties. These concerns were expressed by some Canadian adopting families, as reported by CTV News. While amendments were discussed, they were not included before royal assent due to tight judicial deadlines. Immigration, Refugees and Citizenship Canada (IRCC) is expected to revisit the issue.

Frequent Cross-Border Workers and Dual Citizens

Canadians working in tech, entertainment, academia, or professional services who frequently move between the two countries may find that meeting the three-year requirement is relatively straightforward. However, thorough record keeping will be important going forward.

Implementation Timeline: A Moving Target

Although Bill C-3 received royal assent, it is not yet in force. Significant operational work remains. Recently, the Ontario Superior Court of Justice granted the government an extension until 20 January 2026 to bring the law into effect, acknowledging that IRCC still needs time to update their internal systems, revise application forms, prepare supporting regulations, and train officers to apply the new rules consistently. Until this infrastructure is ready, the government cannot set a firm date for implementation. The law may come into force earlier, but 20 January 2026 is the current maximum date, unless another court extends it.

Temporary Measures Remain in Place

IRCC’s interim discretionary grant process, introduced in March 2025, remains in operation. Individuals affected by the first-generation limit can still apply for citizenship through this pathway until the law officially comes into effect. However, since the new law is about to come into force, it might be better to wait for that to happen.

Remaining Issues—Still in the Background

While broadly welcomed, the new rules leave a few issues unresolved: adoptive families argue that the substantial-connection test unfairly burdens children already legally part of Canadian households; some legal experts question how older records will be assessed for parents needing to prove three years of physical presence; and the rollout will inevitably take time, increasing the risk of delays and backlogs. Nonetheless, none of these issues diminish the legislation’s main achievement—restoring fairness and establishing a clear, modern framework for passing Canadian citizenship to future generations.

Who Else Should Pay Attention

The law’s ripple effects reach well beyond Canadians in America. Relevant groups include:

• Canadian expatriates in Europe, Asia, Latin America, and the Middle East
• Dual-national families with cross-border careers
• Canadian military, diplomatic, and NGO families posted abroad
• Globally mobile professionals in tech, academia, finance, and multinational corporations
• Prospective adoptive parents
• Immigration lawyers, HR mobility officers, and corporate planners

For these groups, understanding Canadian citizenship pathways is becoming essential to long-term planning.

Final Thoughts

For the hundreds of thousands of Canadians now living in the United States, Bill C-3 is the most significant update to Canadian citizenship rules in years. It restores status to families long caught in legislative limbo and creates a clearer, more modern framework for future generations. Some details—particularly surrounding adoption—may still change, but the overall direction is clear: Canada is updating its citizenship laws to reflect the realities of a globalized world. For many Canadians in America, the effects will be both immediate and deeply personal.