This article critically examines the “Canadian model” of immigrant settlement service delivery. This is a system where most settlement services are provided through community-based, including ethno-specific, agencies funded primarily by the various levels of government. Although this model has been widely celebrated as an efficient, immigrant-friendly, and inclusive model to be emulated elsewhere, we argue that it is a system in crisis. Rather than continuing to promote this model uncritically, we examine the roots of this crisis and in this light offer a reconsideration of a series of current policy issues in immigrant service provision in Canada.