TORONTO, November 6, 2025 – “Ontario’s universities support the government’s continued focus on building a strong economy in today’s Fall Economic Statement (FES) and reaffirm that sustained investment in universities is essential to achieving that goal.
Ontario’s economy depends on a strong postsecondary system that equips students with in-demand skills, drives innovation and supports communities across every region of the province. Yet the financial challenges facing Ontario’s universities threatens their ability to deliver on that mission.
The 10 per cent cut and freeze to tuition since 2019, declining real per student funding, and the cuts to international student visa permits have left universities with immediate and growing shortfalls that threaten programs, research and student supports.
Ontario’s universities continue to find new and innovative ways to drive greater efficiencies and have already made nearly $550 million in budget cuts over the last few years – reducing programs, services and staffing – yet they still face a projected $265 million annual deficit in 2025-26, with deficits continuing to rise.
Over the last five years, the number of Ontario high school students applying to an Ontario university has increased by 17%, which is expected to grow in the years ahead. And the current funding cap on domestic students means that almost 28,000 Ontario students are not funded by the province. If the funding cap is not increased, another 77,000 Ontario high school students will face greater difficulties in enrolling in a program or university of their choice.
Exacerbating these financial challenges are the federal changes to international study permits, which have magnified the sector’s funding challenges. Based on the previous federal changes, the sector is forecasting a loss of $1B in revenue over two years. And as a result of the recent federal budget changes to international study permits, Ontario universities will face deeper revenue losses if international student permits are cut in half. These additional impacts will further undermine the financial stability of universities, despite the fact that universities acted responsibly in the recruitment and enrolment of international students.
Today’s FES rightly underscores the importance of protecting and building Ontario’s economy, and to achieve that, the province must ensure its universities have sustainable funding or risk eroding the talent and innovation pipeline that Ontario’s economy depends on.
Ontario’s universities welcome the government’s commitment to a funding formula review. To help ensure that Ontario’s universities can support students and the economy, we are calling on the province to:
- Double and annually grow sustainability funding to reflect increasing costs and ensure universities have the financial resources to protect and grow Ontario’s economy.
- Fund enrolment expansion to meet the growing demand from Ontario high school students.
- Boost operating grants for Northern, small and regional as well as francophone/bilingual programing to reflect the higher costs and special needs in delivering these programs.
- Fund Bill 124 costs and help offset lost revenue from the decline in international students.
The need is urgent, but the solution is clear. Investing in universities is investing in Ontario’s future prosperity.
Ontario’s universities are critical in helping the province navigate today’s headwinds and lead into a stronger future. By increasing operating funding – alongside universities’ continued commitment to increased efficiencies – Ontario can turn challenge into advantage – and protect and grow its place in the global economy.”
– Steve Orsini, President and CEO, Council of Ontario Universities