TORONTO, January 21, 2026 – “At a moment of profound global uncertainty – marked by escalating geopolitical tensions, supply-chain disruptions, accelerating technological change, and intensifying global competition – Ontario cannot afford to weaken the very institutions that underpin its economic prosperity, resilience, and long-term competitiveness.
Ontario’s universities are calling for urgent, sustained investment in the 2026 Ontario Budget to ensure the province can continue developing the talent and innovation needed to secure Ontario’s economic future. As outlined in our pre-budget submission, we are calling on the provincial government to increase base operating funding by $1.2 billion starting in 2026-27, growing to $1.6 billion by 2028-29, to expand access for Ontario students and strengthen research-driven economic growth.
Universities welcome the government’s investments to date, including $1.3 billion over three years for colleges and universities – funding that is scheduled to expire in just over a year – and $150 million annually to support unfunded STEM enrolment. However, the combined impact of the tuition cut and freeze, along with reductions to international student visa permits, which alone is projected to result in a cumulative revenue loss of $5.4 billion by 2028-29 – far exceed the additional funding support.
Universities have already absorbed deep cost pressures while working to protect students from disruption. Nearly $1.28 billion in cuts and deferrals have been implemented across the sector over the last three years. But despite these efforts, and despite recent support, the funding gap remains – and it is widening – putting essential student services, research capacity and enrolment in high-demand programs at risk. The sector is projecting deficits of $265 million in 2025-26, with a total budget shortfall growing to $1.3 billion by 2028-29.
For years, Ontario’s universities have done more with less. Ontario continues to have the lowest per-student university funding in Canada, and the system is now facing deep and prolonged cuts.
The consequences are real: reduced spaces, cuts to student services, including work-integrated learning opportunities, career coaching and student mental health, and reduced support for commercialization and start-up incubation programs that fuel Ontario’s innovation economy. These cuts are weakening the very foundation that helps Ontario adapt, grow and compete.
Ontario needs universities now more than ever. Universities are ready to deliver: ready to train the next generation of skilled professionals who are vital to driving Ontario’s economy, including health care, critical minerals, advanced manufacturing, agri-food, nuclear energy and creative industries.
But despite their vital role, the ability for universities to continue to innovate and develop the workforce of tomorrow – is at risk.
Ontario’s universities call on the provincial government to ensure they have the resources to continue to deliver the talent, research, and economic growth that keep our province moving forward.
With growing threats to our economy, Ontario’s universities are ready to do their part and are committed to being partners in growing this province – but they need the government to provide the support so they can continue to deliver the talent, research, and innovation to grow our province.”
– Steve Orsini, President and CEO, Council of Ontario Universities
Learn more: 2026 Pre-Budget Submission: Protecting and Growing Ontario’s Future Through Talent and Innovation
