Canada Tightens Citizenship Rules: Bill C-3 Reforms Explained

Written by

Mynaz Altaf

Fact check by

Shreya Pandey

Updated on

Oct 26,2025

Canada Tightens Citizenship Rules: Bill C-3 Reforms Explained

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Canada, a nation built on immigration, is preparing for a significant legislative shift that will redefine how citizenship is granted by descent to those born outside its borders. The federal government, in response to a landmark court ruling, is moving forward with amendments under Bill C-3, a development that carries profound implications for Canadian families living abroad, especially those with multi-generational ties to the country. This proposed tightening of rules aims to strike a complex balance between upholding a genuine connection to Canada and preventing an indefinite expansion of citizenship without domestic residency.

The Rationale Behind Legislative Reform

The introduction of Bill C-3 comes as a direct legislative response to judicial pressure, signalling the government’s attempt to create a more constitutionally sound framework for granting citizenship by descent. The changes are primarily focused on the First-Generation Limit (FGL), a controversial restriction that has long been debated for its perceived unfairness to families with deep but non-resident connections to Canada. This legislative action sets the stage for a new era in Canadian immigration and nationality law. 

Also Read: Canadian Citizenship for Indians: Eligibility, Process, Cost

Introducing Bill C-3 and the Citizen Act Amendments

The new legislation seeks to amend the Citizenship Act to align with modern legal interpretations while preserving the principle of limiting generational citizenship transfer. The core intention is to ensure that a substantial link to Canada exists for citizenship to pass down to children born abroad. The bill proposes that children born to a Canadian parent by descent must meet a stringent new residency requirement for the parent to pass on their citizenship. This move is designed to address the challenges of national oversight and accountability for a growing, globally dispersed citizenry.

The Controversial First-Generation Limit (FGL)

To fully grasp the implications of Bill C-3, we must first look at the historical context that necessitated this legislative change. The existing "first-generation limit," introduced in 2009, prevents a Canadian citizen who was themselves born outside Canada (a citizen by descent) from automatically passing on citizenship to their children born abroad (the second generation). This rule effectively created what many call a "lost generation" of individuals—those denied citizenship despite having a Canadian grandparent. The proposed Bill C-3 attempts to refine, rather than eliminate, this principle.

New Requirements for Citizenship by Descent

The most critical and impactful component of the proposed changes is the introduction of a mandatory physical presence requirement for Canadian parents seeking to pass on their citizenship. This rule establishes a clear, quantifiable metric for demonstrating a meaningful connection to Canada before citizenship can be conferred on a child born in another country. It will necessitate careful record-keeping and planning for Canadian citizens living overseas. 

Also Read: Indians Top List as Largest New Citizens Group in Canada: Citizenship Week

The Critical Three-Year Physical Presence Rule

Under the new rules, a child born or adopted abroad to a Canadian citizen by descent will only acquire citizenship if their Canadian parent has physically resided in Canada for at least three years during the five-year period immediately preceding the child’s birth or adoption. This condition creates a firm requirement for the Canadian parent to demonstrate a significant re-establishment of life within the country. It is a fundamental shift that moves beyond mere ancestral connection toward actual, verifiable residency.

Who is Exempt from the New Restrictions?

Building upon the previous point, the legislation also addresses who will be excluded from these new requirements. Crucially, the restrictions will not apply retroactively. Children who were born or adopted before the law officially comes into effect will be exempt from this stringent three-year physical presence rule. Furthermore, children born in Canada continue to automatically gain citizenship at birth, except in extremely limited cases such as the children of foreign diplomats, ensuring that the principle of birthright citizenship remains firmly in place.

Legal Challenge and the 'Lost Generation'

The catalyst for Bill C-3 was the successful legal challenge to the existing FGL, which demonstrated the law's vulnerability on constitutional grounds. The judicial system recognised the discriminatory nature of the previous rule, forcing the federal government to draft a legislative solution that would withstand scrutiny while still managing the complex issue of generational citizenship. The political necessity of addressing the "lost generation" cannot be overstated in this context.

The December 2023 Constitutional Ruling

In December 2023, the Ontario Superior Court of Justice ruled that the current First-Generation Limit (FGL) was unconstitutional. The court found that the law unfairly discriminated against Canadians born abroad who were unable to pass on their citizenship, a right afforded to citizens born in Canada. This pivotal judgment mandated that the government find a new, non-discriminatory approach, leading directly to the drafting of the current amendments in Bill C-3. The ruling essentially set a deadline for the federal government to rectify this legal and social anomaly.

The Government's Response to Judicial Mandate

The proposed Bill C-3 represents the government's latest effort to comply with the court’s ruling while attempting to retain a modified version of the First-Generation Limit. By introducing the physical presence requirement, the government aims to establish a bona fide link that justifies the conferral of citizenship, thus defending the new rules against future constitutional challenges. The deadline for finalising amendments to the FGL is stipulated as November 20, 2025, underscoring the urgency of the legislative process.

Stricter Vetting for Adult Applicants

Beyond the changes to generational descent, the Bill C-3 amendments also introduce several new requirements for adult applicants. These additional hurdles are designed to enhance national security and ensure that new citizens are integrated and knowledgeable about Canadian society. The process is being streamlined and tightened concurrently, reflecting a more cautious approach to granting citizenship. 

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Mandatory Security and Vetting Assessments

Adult applicants, specifically those aged 18 years or older, must now successfully undergo a comprehensive security assessment. This vetting process will scrutinise applicants for any concerns related to national security, involvement in human rights violations, criminality, and compliance with economic sanctions. The introduction of this mandatory assessment reflects a priority for national security and integrity within the Canadian citizenship process, adding a significant layer of due diligence.

Language and Knowledge Proficiency Benchmarks

Applicants aged 18 to 55 will be required to demonstrate an adequate knowledge of either English or French, Canada's two official languages. Furthermore, they must also exhibit a satisfactory understanding of Canada's culture, inherent rights, and civic responsibilities. This criterion is a standard measure for promoting successful integration and ensuring that new citizens are prepared to participate fully in Canadian life, contributing to a cohesive national identity.

Auxiliary Provisions and Political Debates

While the focus remains on citizenship by descent, Bill C-3 is part of a broader legislative conversation. The debate has naturally touched upon other fundamental aspects of Canadian nationality, even prompting a discussion about the deeply entrenched principle of birthright citizenship. The final form of the bill will also incorporate mechanisms for accountability and reporting to ensure transparency in the new administrative processes.

Rejection of Birth-Right Citizenship Abolishment

In a related development, a proposed amendment that would have sought to abolish birthright citizenship was ultimately rejected by the parliamentary committee. This proposal aimed to restrict automatic citizenship only to children born in Canada to at least one Canadian parent. The rejection confirms Canada’s continuing commitment to the Jus Soli (right of the soil) principle, ensuring that nearly all children born within the nation's geographical limits retain the right to citizenship. 

Also Read: Canada Unveils New Rules for Canada Immigration to Welcome Diverse Talent

Increased Ministerial Oversight and Annual Reports

The new legislation requires the Immigration Minister to submit detailed annual reports to Parliament. These reports must outline the number of new citizens granted under the amended Act and provide a record of any waivers of security assessments that were issued during the reporting period. This provision is a crucial step towards institutional transparency and provides Parliament with the necessary tools to monitor the efficacy and integrity of the new citizenship rules.

Implications for Canadian Families Abroad

The proposed changes have a direct and immediate impact on Canadians living overseas who are planning their families. They must now be acutely aware of the residency requirements necessary to secure citizenship for their children. The legislative timeline also adds a sense of urgency for those currently caught in the legal ambiguity of the previous system, pushing them toward utilising the available interim measures.

Navigating the Interim Discretionary Grants

Recognising the hardship and uncertainty created by the unconstitutional law, interim measures have been put in place. Individuals who were affected by the previous First-Generation Limit (the "lost generation") are currently allowed to apply for discretionary grants of citizenship online. While current processing times for these applications average around eight months, expedited processing is available for cases demonstrating exceptional hardship, offering a temporary pathway to rectification.

The November 2025 Deadline and Final Passage

The legislative process requires Bill C-3 to successfully pass its third readings in both the House of Commons and the Senate before it can receive royal assent and officially become law. With a deadline of November 20, 2025, for the final amendments to the FGL, the clock is ticking. The swift passage of this bill is necessary to provide legal certainty to countless Canadian families and close the gap created by the court’s ruling.

Conclusion

The proposed amendments under Bill C-3 mark a pivotal and complex moment in the history of Canada's Citizenship Act. While maintaining the principle of birthright citizenship, the bill significantly tightens the rules for citizenship by descent, notably by requiring a three-year Canadian residency for parents born abroad. This legislative manoeuvring is a direct response to a constitutional ruling that deemed the previous First-Generation Limit (FGL) discriminatory. The new requirements for both parents and adult applicants underscore a renewed focus on national connection, security, and integration. As the bill moves toward its final passage, likely by late 2025, it will reshape the futures of countless Canadians living in the global diaspora, balancing the ideals of an open society with the need for clear legal and national identity standards. This comprehensive reform aims to heal the legal rift of the 'lost generation' while establishing a sustainable, constitutionally sound pathway for future generations. Visit TerraTern to know more!

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Frequently Asked Questions

What is the main change proposed by Bill C-3 regarding citizenship by descent?

Bill C-3’s main change is the introduction of a new residency requirement for Canadian citizens who obtained their citizenship by descent (i.e., were born outside Canada to a Canadian parent). Under the proposed law, these Canadian parents can only pass on their citizenship to their own children born abroad if the parent lived in Canada for a total of at least three years (1,095 days) during the five years immediately before the child’s birth or adoption. This condition effectively replaces the old "first-generation limit" that was deemed unconstitutional, ensuring that a substantive, real-world link to the country exists for the generational transfer of Canadian nationality to continue.

What is the specific 'three-year physical presence' rule?

The specific three-year physical presence rule requires a Canadian citizen by descent to have accrued at least three years of physical presence within Canada during a five-year window directly preceding the birth or adoption of their child abroad. This rule is designed to establish a demonstrably substantial connection to Canada by the parent, thus justifying the child’s automatic grant of citizenship. It is a strict time-based criterion that parents must meet, and it does not apply to children born to parents who gained Canadian citizenship through means other than descent, such as naturalisation or birth on Canadian soil.

How does Bill C-3 address the unconstitutionality of the previous law?

The previous First-Generation Limit (FGL) was ruled unconstitutional because it discriminated against Canadians who were born abroad by preventing them from passing on their citizenship, a right held by those born in Canada. Bill C-3 addresses this by creating an exception to the FGL—the three-year residency requirement. The new legislation permits the transfer of citizenship to the second generation born abroad, provided the parent meets the residency test, thereby giving citizens by descent a pathway to pass on their status. This aims to resolve the constitutional challenge by offering an equitable, albeit conditional, route to citizenship for the 'lost generation.'

Are there new requirements for adults applying for citizenship?

Yes, the proposed Bill C-3 introduces two new requirements specifically for adult applicants. Firstly, all applicants aged 18 years or older must undergo a mandatory and thorough security assessment to screen for concerns related to national security, criminality, and compliance with human rights and sanctions. Secondly, applicants between the ages of 18 and 55 must demonstrate a sufficient proficiency in one of Canada’s official languages, English or French, and possess adequate knowledge of Canada’s culture, rights, and responsibilities. These measures are intended to strengthen the integrity of the citizenship process and promote successful civic integration.

Who is considered part of the "lost generation" and how can they apply now?

The "lost generation" refers to individuals who were born outside Canada to a parent who was also born outside Canada (a citizen by descent), and who were consequently prevented from obtaining Canadian citizenship due to the 2009 First-Generation Limit. Following the constitutional ruling, interim measures have been put in place to help this group. Currently, individuals affected by the FGL can apply for citizenship through discretionary grants, which are processed online by the government. While standard processing averages eight months, applicants facing demonstrable hardship may apply for expedited consideration to gain their deserved citizenship status.