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

Province supporting sector with new funding model and updated tuition and OSAP frameworks

TORONTO —The Ontario government is taking decisive action 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. These actions come in response to the unprecedented pressures Ontario’s postsecondary sector is facing, including as a result of changes made by the federal government.

“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.

Quick Facts

·                     Since 2024, the government has invested over $2 billion in additional funding for colleges, universities and Indigenous Institutes, which is on top of the $5 billion Ontario invests in the sector every year.

• Under the new funding model, base per student funding at colleges and universities will increase by 6 per cent for full-time students and 30 per cent for college part-time students.

• Ontario will be negotiating an enhanced Student Access Guarantee (SAG) with institutions to provide additional financial support for tuition, books and mandatory fees for low-income students if OSAP funding does not cover these costs, ensuring students of all financial backgrounds can access higher education.

• The province is making its own administration more efficient by streamlining over 400 transfer payment agreements into 45, five-year Strategic Mandate Agreements with colleges and universities, saving institutions time and money.

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Quotes

"This announcement reflects a priority the Ontario Chamber has championed: if we want a more competitive, self-reliant Ontario, we have to skill up and scale up. That means preparing more people for in-demand careers, and strengthening the programs that power our key sectors. This is an investment in Ontario's productivity and long-term prosperity."

- Daniel Tisch

President and CEO, Ontario Chamber of Commerce

"First Nations Technical Institute (FNTI) is grateful for this historic investment that will stabilize and support Ontario's Indigenous Institutes. This additional funding will greatly enhance FNTI's operations, increase capacity to better support learners and provide additional seats to address the high demand for new Indigenous postsecondary programming. I am grateful to Minister Quinn and the Government of Ontario for their continued support."

- Suzanne Brant

President, First Nations Technical Institute

"We are pleased that the province is prioritizing small, northern and rural francophone colleges as part of this consequential announcement today."

- Daniel Giroux

President, Collège Boréal

"Ontario’s colleges are key to developing a skilled and responsive workforce in our communities, and today’s historic and transformative investment significantly enhances our ability to support our province’s strategies for economic resilience and growth."

- Sean Kennedy

President, Niagara College

"We are incredibly grateful to the Ontario government and Minister Quinn for this transformational investment in postsecondary education. This funding will ensure that our students are well prepared to take on the complex challenges of the future, while delivering lasting economic benefits for Ontario."

- Mohamed Lachemi

President and Vice-Chancellor, Toronto Metropolitan University

"This significant investment strengthens the province’s universities at a critical moment and ensures students have access to high-quality programs and essential supports that prepare them to build thriving communities and a strong Ontario."

- Deborah MacLatchy

President and Vice-Chancellor, Wilfrid Laurier University

"These new resources will provide Ontario’s universities with essential tools for maintaining and improving the quality of education we provide to our students, while supporting research and innovation that improve our quality of life and strengthen Ontario’s and Canada’s economies."

- Susan Tighe

President, McMaster University

"The provincial government's investment is a substantial commitment to Ontario’s public colleges and polytechnics. These institutions are integral to building a strong and resilient economy in which our graduates are needed now more than ever. This funding will empower our system to continue to be agile and partner with industry to drive Ontario’s economic future."

- Dr. Ann Marie Vaughan

President and CEO, Humber Polytechnic

"Colleges have been delivering job-ready, highly skilled graduates for more than 60 years, and this is the largest investment in our sector’s history. It recognizes how integral our students, graduates, and programs are for the strength of Ontario’s economy. We are proud to continue working with government to serve the unique labour market and learner needs of the regions where we are located."

- Glenn Vollebregt

President and CEO, St. Lawrence College