January 21, 2026
RED FM News Desk
Ontario’s universities and colleges are urging the Ford government to provide billions in new funding in the upcoming provincial budget, warning the post-secondary sector is at a breaking point after years of financial pressure.
Institutions say low operating grants, a prolonged tuition freeze, and a sharp decline in international student revenue have created deep financial strain. Universities project a $1.3-billion shortfall by 2028–29, while colleges estimate a sector-wide deficit of up to $1.5 billion by 2027–28.
In its pre-budget submission, the Council of Ontario Universities is calling for an additional $1.2 billion in operating funding next year, rising to $1.6 billion by 2028–29. President and CEO Steve Orsini said the investment is critical to supporting economic growth and meeting rising student demand.
Since 2020, applications from Ontario high school students to in-province universities have increased by 18.5 per cent, but enrolment caps and limited funding are restricting available spaces. Orsini warned this could limit Ontario’s ability to train future talent.
Colleges are also seeking $1.5 billion in funding, arguing they cannot sustain high-cost programs in skilled trades, technology, and advanced manufacturing. Colleges say provincial funding remains $7,700 per student below the national average.
The sector has been hit hard by federal caps on international student visas, which colleges say will remove up to $4.2 billion in revenue by 2027–28. Institutions have already cut $1.4 billion in costs, suspended more than 600 programs, and eliminated over 8,000 jobs.
The provincial government says it has increased operating funding by 12 per cent over the past two years and is reviewing changes to the funding formula to better align with labour-market needs.
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