Ontario’s public colleges and universities are facing escalating financial pressure as declining international enrolments continue to erode institutional budgets. The provincial government has confirmed that it is conducting a comprehensive review of how it funds higher education, even as colleges warn of mounting deficits, program suspensions and job losses. The situation, as reported by Global News, underscores the fallout from Canada’s federal cap on international study permits and a long-standing freeze on domestic tuition fees.
Tuition freeze extended, no clarity on future fee hikes
Ontario Minister of Colleges, Universities, Research Excellence and Security, Nolan Quinn, recently said the province’s tuition freeze will remain in place until the end of the 2026–27 academic year. Quinn declined to say what may happen after that period, despite repeated questions at a legislative committee.Opposition parties argue the uncertainty is alarming. NDP critic Peggy Sattler said the minister’s refusal to rule out future fee hikes shows the government may shift more financial burden onto students. She pointed out that Ontario already provides the lowest per-student funding in Canada, a concern also highlighted in earlier reports by Global News.
Colleges warn of program cuts, job losses and instability
Ontario’s post-secondary institutions say they are in no position to absorb further financial shocks. Before Ottawa introduced and later tightened the international student cap, colleges relied heavily on foreign enrolments — drawing about 30% of their revenue from international students.In a recent statement, Colleges Ontario said the sector has already undergone significant retrenchment:
- $1.8 billion cut from budgets
- 600 programs suspended
- 8,000 jobs eliminated
The association warned that further cuts are destabilising colleges and the communities they serve, stressing the urgent need for an updated funding formula and provincial action to offset the federal cap.
Universities project major deficits, seek higher operating grants
Ontario universities are also sounding alarms. The Council of Ontario Universities said its members face a combined deficit of $265 million this year. The council called on the provincial government to increase operating funding and support long-term financial sustainability.According to the council, strengthening university finances is essential not only for academic continuity but for the province’s economic competitiveness. Institutions argue that without new provincial support, Ontario may fall behind in sectors poised to define future growth, including technology, health sciences and research-driven industries.
Funding formula under review after a decade
Quinn has said the province is examining all components of its post-secondary funding model, noting that it has not been meaningfully updated in more than a decade. A major area under scrutiny is the system of “weighted grant units,” which determines the funding allocated to different academic programs.The minister said the government has spent the summer meeting with all 47 publicly assisted colleges and universities to understand how costs have changed and where the formula may need major revisions. As previously reported by Global News, the sector has been warning for months that without significant structural changes, the financial challenges could deepen.
