The Ontario government is investing $6.4 billion in its postsecondary sector to ensure long-term sustainability, protect student access to high-quality education, and support world-class research at universities, colleges, and Indigenous Institutes. This move comes in response to unprecedented pressures, including federal policy changes that have reduced international student revenues and increased domestic demand for higher-cost programs.
Minister Nolan Quinn emphasized that the funding will help train a highly skilled workforce for Ontario, maintain accessible education, and prepare graduates for in-demand, well-paying careers. The investment focuses on three key goals: equipping students with skills aligned to labour-market needs, maintaining access to quality education, and ensuring the long-term sustainability of postsecondary institutions while advancing research excellence.
To achieve these goals, a new long-term funding model will provide universities, colleges, and Indigenous Institutes with predictable, increased funding. Over four years, the sector will receive an additional $6.4 billion, raising annual operating funding to $7 billion—a 30% increase and the highest in provincial history. The plan includes creating 70,000 new seats to better serve small, rural, northern, French-language, and Indigenous institutions.
The province is also updating tuition policies to allow annual increases of up to 2% for three years, followed by adjustments based on inflation or 2%, whichever is lower. This framework maintains one of the lowest tuition increase rates in Canada, with an average additional cost of just $0.18 per day for college students and $0.47 per day for university students. Low-income students will benefit from an enhanced Student Access Guarantee to cover remaining costs.
Ontario is also strengthening the Ontario Student Assistance Program (OSAP) to ensure financial support remains sustainable. Under the new model, students will receive a maximum of 25% in grants and at least 75% in loans, with funding for private career colleges aligned with federal changes.
The funding is expected to have a transformative impact on the postsecondary sector, supporting skill development, innovation, and equitable access for Indigenous learners. Leaders from Colleges Ontario, the Council of Ontario Universities, Indigenous Institutes, and individual universities and colleges welcomed the investment, noting it will enhance economic growth, workforce readiness, and research capacity across the province.
Since 2024, the government has invested over $2 billion in addition to its annual $5 billion commitment. The new funding model increases base per-student funding by 6% for full-time students and 30% for college part-time students, while streamlining over 400 transfer payment agreements into 45 five-year Strategic Mandate Agreements, improving efficiency and reducing administrative burdens.
Overall, the $6.4 billion investment is designed to secure Ontario’s postsecondary sector for the future, ensuring students have access to affordable, high-quality education and equipping institutions to produce a competitive, skilled workforce that drives the province’s economic resilience and growth.
