The Ontario government says it will invest $6.4 billion over four years to strengthen the long-term sustainability of the province’s postsecondary sector, while introducing a new funding model, updated tuition framework and changes to the Ontario Student Assistance Program.
The announcement was made Thursday by the Ministry of Colleges, Universities, Research Excellence and Security, which said the measures are intended to protect students’ access to education, support in-demand workforce training and maintain Ontario’s position as a centre for research excellence.
“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.”
The government said the plan is guided by three principles: preparing students for in-demand careers that meet labour market needs; preserving access to high-quality postsecondary education while supporting students’ investment in their success; and providing long-term sustainability for institutions while ensuring funding advances research excellence and responds to student and labour market demand.
“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.”
The province said changes made by the federal government have significantly reduced international student revenues, while domestic demand has increased for higher-cost programs. It also said OSAP is “dramatically out of line with other jurisdictions.”
Beginning in fall 2026, a new long-term funding model will provide increased and more predictable operating funding to universities, colleges and Indigenous Institutes. The government said the changes will bring an additional $6.4 billion into the sector over four years, raise annual operating funding to $7 billion — a 30 per cent increase — and fund 70,000 additional in-demand seats. The model is also intended to better meet the needs of small, rural, northern, French-language and Indigenous Institutes.
The province will also allow publicly assisted colleges and universities to raise tuition by up to two per cent per year for three years, followed by increases of up to two per cent or the three-year average rate of inflation, whichever is less. The government said the change would result, on average, in an additional cost of 18 cents per day for college students and 47 cents per day for university students. It said low-income students would have this cost absorbed through an enhanced Student Access Guarantee.
Under the revised OSAP framework, students will be eligible to receive a maximum of 25 per cent of their funding as grants and a minimum of 75 per cent as loans. Grants will no longer be available to students attending private career colleges, aligning with federal changes.
“Today’s announcement of $6.4 billion is a game changer for the economic future of Ontario,” said Maureen Adamson, president and CEO of 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 of the 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 of the Indigenous Institutes Consortium and president of 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.”
The government said that since 2024 it has invested more than $2 billion in additional funding for colleges, universities and Indigenous Institutes, on top of the $5 billion it invests annually in the sector. It also plans to streamline more than 400 transfer payment agreements into 45 five-year Strategic Mandate Agreements with colleges and universities to improve administrative efficiency.
