Ottawa Universities Sound Alarm Over Federal Study Permit Reductions
Student unions at Ottawa's two largest universities are raising serious concerns about the federal government's plan to dramatically reduce international study permits, warning the move could devastate already struggling post-secondary institutions.
Massive Permit Cuts Outlined in Federal Budget
According to recently released budget documents, the federal government plans to slash new study permits by 65 per cent in 2026, reducing the number to approximately 155,000. The cuts become even more severe in subsequent years, with projections showing only 150,000 new permits in both 2027 and 2028.
This represents a dramatic reduction from current levels. An annual immigration report indicates that 516,275 people held study permits in Canada during 2024, with fewer than 360,000 being new permit holders.
Universities Already Facing Financial Strain
The timing of these cuts couldn't be worse for Ontario's post-secondary institutions. Both the University of Ottawa and Carleton University are projecting significant budget shortfalls this year.
uOttawa budget documents reveal officials are projecting a $16.1 million deficit, while Carleton faces an even larger base operating deficit of $32 million.
Jack Coen, president of the University of Ottawa Students' Union, expressed deep concern about the potential impact. "A reduction in international students, as cited in the recent federal budget, will be a real loss here at uOttawa," Coen stated.
International Tuition Fills Funding Gaps
The financial pressure on Ontario universities has been mounting for years. Domestic student tuition has been frozen in the province for several years, and Colleges and Universities Minister Jill Dunlop confirmed in February that the freeze would extend until at least the 2026-2027 academic year.
According to the Council of Ontario Universities (COU), Ontario has had the lowest per-student funding of any province for over a decade. The non-partisan organization projected in May that post-secondary institutions would lose nearly $1 billion in revenue over the next two years.
This financial reality has forced institutions to increasingly rely on international student tuition fees to balance their budgets. The proposed study permit cuts threaten to eliminate this crucial revenue source.
The permit reductions are part of a broader federal strategy to reduce temporary residents in Canada from 673,650 in 2025 to 385,000 in 2026, and further down to 370,000 in both 2027 and 2028.
When questioned about what these cuts might mean for university programs and finances, uOttawa president and vice-chancellor Marie-Eve Sylvestre offered an optimistic perspective, stating she was "thrilled to see the federal government announce a major investment to support universities in attracting top international talent into our institutions."
Despite this official optimism, student unions remain deeply worried about the practical implications of losing international students, both for campus diversity and for the financial stability of their institutions.
