TORONTO, December 17, 2025 – “At a time when the Ontario economy is under threat and in urgent need of highly skilled talent and innovation, the federal government’s allocation to Ontario has reduced the province’s total Provincial Attestation Letter (PAL) cap by 42 per cent. Today’s allocation from the Ontario government reduces Ontario university PAL allocation for undergraduate international study permit applications by 33 per cent, from 36,725 to approximately 24,600. This comes at a critical moment for Ontario’s competitiveness.
Continued reductions to university PALs will have real consequences. It limits Ontario’s ability to develop talent, weakens university research and innovation capacity, and compounds the already significant financial pressures facing universities and rising demand from Ontario students for a university education.
Federal measures to reduce the number of international students has reduced Ontario university revenue by more than $300M last year, $700M this year, $1.1B next year, $1.5B in 2027-28 and $1.7B in 2028-29 – for a cumulative total of $5.4B over five years (see chart below).
Ontario’s universities have been responsible in the recruitment and support of international students, with leading practices in place to support these students, while maintaining modest levels of international enrolment growth. With a total average of 19 per cent international students, universities are ensuring that those who choose to study here receive a world-class education, robust supports, and clear pathways to contribute to our communities and the economy.
International students play a vital role within the social and economic fabric of the province and our country. University-level international students provide the top talent that Ontario needs to boost economic growth and compete globally.
In recognition, the federal government has implemented several measures that reinforce the critical importance of attracting top talent by:
- Investing $1.7B over several years to attract top research talent is welcome news and will help rebuild Canada’s brand to attract top talent.
- Exempting master’s and PhD degrees from the requirement of Provincial Attestation Letters removes a regulatory barrier in attracting these highly qualified students, and
- Fast-tracking PhD study permit approvals that will further enhance Canada’s ability to compete in attracting top talent from around the world.
Universities remain committed to doing their part and continue to find new and innovative ways to drive greater efficiencies and have made significant budget cuts over the last few years – reducing programs, services and staffing – yet they still face a projected $265M annual deficit in 2025-26, with deficits continuing to rise.
Ontario’s economy depends on strong universities that equip students with in-demand skills, drive innovation and support communities across every region of the province. But the financial challenges facing Ontario’s universities are increasingly threatening their ability to deliver on that mission.
That’s why, now more than ever, we are urgently calling for increased investments in Ontario’s universities so that they can continue delivering the highly skilled workforce and research and innovation that Ontario needs.
We will continue to work with both levels of government to rebuild Canada’s global reputation and ensure the province has the talent and innovation it needs to ensure we can foster greater economic growth and prosperity and attract the best and brightest from around the world.”
– Steve Orsini, President and CEO, Council of Ontario Universities
