ONTARIO NEWS RELEASE: Ontario Investing $6.4 Billion to Support Postsecondary Sector’s Long-Term Success and Sustainability

“In order to protect our province, it is imperative that we continue to train a strong, highly skilled workforce for Ontario for decades to come,” said Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security. “Through these changes, including $6.4 billion in new funding for the postsecondary sector, our government is not only ensuring the sustainability of our colleges, universities and Indigenous Institutes, but also preparing our graduates with the in-demand skills they need to meaningfully find good-paying, rewarding careers, while continuing to keep education accessible and keep costs down for students and their families.”

Ontario’s plan to build a stronger postsecondary sector is based on three principles:

• Preparing students for rewarding, in-demand careers that meet labour market needs
• Preserving Ontario students’ ability to access high-quality postsecondary education, while supporting their ability to appropriately invest in their education and success
• Providing Ontario’s postsecondary sector long-term sustainability, while continuing to ensure funding for the sector is being used to further Ontario’s position as a centre for world-class research excellence while meeting student and labour market needs

“It is more important than ever that we manage Ontario’s finances responsibly – to build a more resilient and self-reliant economy to secure long-term prosperity,” said Peter Bethlenfalvy, Minister of Finance. “Postsecondary education is one of Ontario’s most important long-term investments – and today’s announcement helps ensure that investment remains strong, responsible and sustainable for years to come.”

Federal changes have significantly reduced international student revenues and the province is also facing increased domestic demand for higher-cost programs and a financial aid program (OSAP) that is dramatically out of line with other jurisdictions. To ensure the province’s world‑class institutions continue producing one of the most competitive workforces in the G7 for generations to come, the Ontario government is making the following changes starting in Fall 2026:

A new long-term funding model will see universities, colleges and Indigenous Institutes focused on delivering programs that align with student and labour-market demand supported by increased, predictable funding. This new long-term funding model will bring an additional $6.4 billion into the sector over four years and raise annual operating funding to $7 billion, a 30 per cent increase and the highest level in the province’s history. It will also fund 70,000 more in-demand seats, while better meeting the needs of small, rural, northern, French-language and Indigenous Institutes.

An updated tuition framework will support the postsecondary sector’s long-term sustainability while maintaining one of the lowest rates of tuition increase in Canada. Ontario will allow publicly assisted colleges and universities to raise tuition by up to 2 per cent per year for three years, then up to 2 per cent or the three-year average rate of inflation, whichever is less, in the years following. This rate of increase will be among the lowest of any province in Canada, including comparable jurisdictions such as British Columbia and Manitoba.

On average, this change will result in an additional cost of $0.18/day for college students and $0.47/day for university students. Low-income students will have this cost absorbed through an enhanced Student Access Guarantee (SAG).

A stronger, more sustainable OSAP system will ensure financial assistance remains available for future generations while supporting students’ appropriate investment in their education and success. To strengthen the long-term sustainability of OSAP and bring it in line with other provinces, Ontario students will be eligible to receive a maximum of 25 per cent of their OSAP funding as grants and a minimum of 75 per cent of their funding as loans. OSAP will no longer offer grants to students at private career colleges, in alignment with changes made by the federal government to its own student support funding.

“Today’s announcement of $6.4 billion is a game changer for the economic future of Ontario,” said Maureen Adamson, President and CEO, Colleges Ontario. “By strengthening Ontario’s colleges, the province has taken a significant step that will power economic growth through a dynamic, skilled workforce in Ontario.”

“Today’s funding announcement comes at a critical time and will help ensure Ontario’s universities continue to protect and grow the province by delivering the talent and innovation needed to remain competitive and position Ontario for the future,” said Steve Orsini, President and CEO, Council of Ontario Universities.

“This historic investment will contribute to Indigenous learners having equitable access to Indigenous-led, quality postsecondary education and training that is grounded in Indigenous culture, language, and knowledge,” said Lorrie Deschamps, Chair, Indigenous Institutes Consortium and President, Oshki-Pimache-O-Win: The Wenjack Education Institute. “By building the capacity of Indigenous Institutes to develop independent programs and priority partnership programs, we will help Indigenous learners to have the knowledge, skills, confidence, and cultural growth needed to build a diverse, inclusive and resilient Ontario economy.”

These changes will protect student access to the education they need to land rewarding, in-demand careers and ensure the province’s world-class institutions can continue producing one of the most competitive workforces in the G7 for generations to come.