Ontario unveils $6.4B plan to strengthen postsecondary sector
The Ontario government has announced its plan to protect postsecondary students’ access to the education they need to launch successful careers, build long-term sustainability in the postsecondary sector and support the world-class research being conducted at Ontario universities and colleges, while ensuring education remains accessible for future generations.
At the centre of the plan is a new long-term funding model, set to take effect in Fall 2026. The province will invest an additional $6.4 billion over four years, increasing annual operating funding to $7 billion — a 30 per cent increase and the highest level in Ontario’s history. It will also fund 70,000 more seats in high-demand programs, while better meeting the needs of small, rural, northern, French-language and Indigenous Institutes.
“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 measures come as Ontario’s postsecondary sector faces mounting financial pressures, including the impact of recent federal policy changes that have reduced international student revenues, growing domestic demand for higher-cost programs and rising strain on the Ontario Student Assistance Program (OSAP).
The government is reforming OSAP to improve its long-term sustainability and align it more closely with other provinces. Under the changes, 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 as loans. Grants will no longer be available to students attending private career colleges, reflecting similar federal changes.
The province is also updating its tuition framework to support institutional sustainability while maintaining what it says will remain among the lowest tuition increases in Canada. Publicly assisted colleges and universities will be permitted to raise tuition by up to two per cent annually for three years, followed by increases of up to two per cent or the three-year average rate of inflation — whichever is lower.
On average, the province estimates the change will amount to an additional $0.18 per day for college students and $0.47 per day for university students. For low-income students, the added cost will be covered through an enhanced Student Access Guarantee.
According to the government, the 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.