TORONTO, May 15, 2025 – “Ontario’s universities welcome the important investments outlined in today’s provincial budget to protect and strengthen the province’s workforce, industries and economy.
The investments in high demand spaces and university research reflects growing student demand and demonstrates the vital role universities play in driving innovation and economic growth across the province.
By increasing funding to support more than 20,000 STEM spaces, the province is taking important steps to help equip students with the skills needed for the in-demand jobs of tomorrow and support Ontario’s competitiveness in a rapidly changing global economy.
Expanding teacher education by an additional 2,600 spaces will help address the growing demand for qualified teachers across the province, ensuring students have the support they need to succeed in the classroom.
Ontario universities also welcome the government’s investments to strengthen our health care sector by building and expanding Primary Care Teaching Clinics across Ontario, increasing nursing and nurse practitioner spaces and adjusting the Stay and Learn Grant to help support Ontario’s urgent health care needs.
Through government investment in university research, the sector will continue to support critical industries by fostering innovation through made-in-Ontario research and preparing students for the changing job market.
Additionally, extending targeted support for Ontario’s Northern Universities for another year, reflects a shared commitment to ensuring access to high-quality education and training in the north.
As Ontario faces growing economic challenges – including tariffs, rising costs, trade disruptions and shifting supply chains – our province needs a strong foundation to stay competitive. To support the government’s Plan to Protect Ontario, Ontario universities are helping protect and grow Ontario’s businesses, industries and communities. By ensuring students have the skills to drive the critical industries that will define Ontario’s economic future – from health care, energy and advanced manufacturing to life sciences and AI – universities are helping build a resilient, future-ready workforce.
Yet, severe financial challenges for universities put our students, businesses and economy at risk. Ontario’s universities receive the lowest per-student funding in the country. Declining per student funding, a cut and freeze to tuition since 2019, and dramatic federal cuts to international students have led to more than $550M in spending cuts over the last few years. Ontario’s universities have had to make severe cuts to programs and services students need to be successful and that our economy needs to be innovative.
Universities are currently projecting nearly $1B in lost revenue over two years, as a result of federal changes to international study permits. Even after factoring in last year’s provincial government funding increases, 13 universities are projecting total operating deficits of $338M in 2024-25.
Ontario’s universities call on the province to accelerate its review of the postsecondary funding formula. Further enrolment expansion is essential to meet growing student demand accompanied with a significant boost to operating grants and an updated tuition fee framework to provide universities with the necessary resources for creating the crucial talent our economy needs and for fostering the research and innovation our industries need to stay competitive.
There isn’t time to wait when our economy is under threat. Strategic investment in Ontario’s universities will fuel the home-grown talent and innovation necessary to support “nation-building” such as the Ring of Fire and nuclear energy generation – projects that will help Ontario stay strong in uncertain times and create jobs, boost unity and spark economic growth.
We look forward to working with the government, industry and communities to build a stronger, self reliant Ontario – one where students have opportunities, businesses can grow and the province remains a leader in the global economy.”
– Steve Orsini, President and CEO, Council of Ontario Universities
Quick Facts
- Funding for Ontario universities comes from three main sources: 1. Annual operating grants from the province 2. Domestic tuition fees 3. International student tuition fees – All three have been cut or frozen.
- The Sustainability Funding announced last year for postsecondary institutions ends after two years – 2026/2027.
- Ontario universities receive the lowest per-student funding in Canada and in 2022-23 were only funded at about 55% of the average of all the other provinces.
- The 10% tuition cut in 2019 and ongoing freeze has reduced the value of tuition by about 30%, and declining real per-student operating funding are placing the education, programs and services students rely on at risk.
- Federal changes to international study permits announced in 2024 are estimated to have a nearly $1B financial loss for the sector in over two years alone.
- Universities have seen a dramatic increase in demand by Ontario high school students wishing to attend an Ontario university. Since 2020, Ontario high school applicants have increased by 16.7%.
- Higher Education Quality Council of Ontario, a provincial government agency, projects that Ontario will need more than 200,000 new university spaces by 2046.