Public colleges and universities in Ontario are confronting a severe financial crisis as a sharp decline in international student enrolments continues to devastate their budgets. The provincial government has officially announced it is undertaking a thorough review of its higher education funding model, even as institutions issue stark warnings about rising deficits, suspended academic programs, and widespread job losses.
The financial strain, widely reported by Global News, results directly from two key policies: the federal government's cap on international study permits and a prolonged freeze on tuition fees for domestic students within Ontario.
Tuition Freeze Extended, Future Hikes Remain Uncertain
Nolan Quinn, Ontario's Minister of Colleges, Universities, Research Excellence and Security, recently confirmed that the province's tuition fee freeze will be maintained until the conclusion of the 2026–27 academic year. However, during a legislative committee hearing, the minister repeatedly declined to provide any clarity on what might happen after that date.
This ambiguity has drawn sharp criticism from opposition parties. Peggy Sattler, an NDP critic, labeled the situation alarming, suggesting the government's refusal to rule out future increases indicates a plan to transfer more financial burden onto students. She emphasized that Ontario already provides the lowest per-student funding in the entire country, a critical point previously highlighted in reports.
Colleges Sound Alarm on Program Cuts and Job Losses
Educational institutions state they are financially incapable of withstanding further shocks. Before the Canadian federal government introduced and subsequently tightened its cap on international students, colleges depended heavily on this revenue stream, with approximately 30% of their total income coming from international student enrolments.
In an official statement, Colleges Ontario detailed the severe retrenchment the sector has already undergone, including:
- $1.8 billion cut from institutional budgets
- 600 programs suspended across the province
- 8,000 jobs eliminated within the college system
The association cautioned that additional cuts are dangerously destabilizing colleges and the local communities they support. It stressed an urgent need for an updated funding formula and immediate provincial action to counter the financial impact of the federal student cap.
Universities Project Major Deficits, Seek Increased Grants
The crisis extends to universities as well. The Council of Ontario Universities has revealed that its member institutions are projecting a combined deficit of $265 million for this year alone. The council is formally requesting the provincial government to increase operating grants and help establish a framework for long-term financial sustainability.
According to the council, securing the financial health of universities is not just vital for academic continuity but is also crucial for Ontario's economic competitiveness. Institutions warn that without substantial new support from the province, Ontario risks falling behind in key future growth sectors like technology, health sciences, and research-driven industries.
Province Reviews Decade-Old Funding Formula
Minister Quinn has stated that the province is examining all elements of its post-secondary funding model, which has not seen a meaningful update in over ten years. A primary focus of this review is the system of weighted grant units, which dictates how funding is distributed to different academic programs based on their cost and priority.
The minister noted that over the summer, the government conducted meetings with all 47 publicly assisted colleges and universities to better understand how operational costs have evolved and where the existing funding formula requires major revision. As previously reported, the sector has been cautioning for months that without significant structural changes, these financial difficulties will only intensify.
