New Brunswick effectively freezes post-secondary funding in 2026 budget

New Brunswick will freeze operating grants for its four publicly funded universities in the 2026-27 budget, after the government of Susan Holt earlier prompted widespread concern about potential cuts to the province’s higher education sector.

The Department of Post-Secondary Education, Training and Labour estimates it will spend $554 million on post-secondary education in 2026-27, a 1.6 per cent increase from 2025-26.

New Brunswick’s universities are expected to receive $307.8 million this fiscal year, up 1.7 per cent from 2025-26. The nominal increase in operating funding slightly trails the Bank of Canada’s 2 per cent target for inflation in 2026.

Minister of Post-Secondary Education and Training Jean-Claude D’Amours, in a written statement to University Affairs, said the government wants to ensure the post-secondary education system is “agile and poised to meet current and future labour market needs,” particularly in health, education and skilled trades. 

“With more than 20 post-secondary campuses across the province, there are opportunities to explore systemic efficiencies as a collective,” said Mr. D’Amours. “I continue to work with each of our universities to better understand their needs.”

The province will make targeted investments in education in 2026-27, including $5.4 million to support medical education in different fields.

It has further earmarked $4.2 million to facilitate foreign credential recognition for workers in the health care, skilled trades, engineering and education sectors.

The provincial government will continue to invest in research with $1 million allocated for the New Brunswick Innovation Foundation and an additional $1 million to ResearchNB.

Earlier this year, the province had suggested there would be up to $50 million in funding cuts to higher education, according to a government document leaked to the press in late February.

Peter Halpin, executive director of the Association of Atlantic Universities, said that the grant freeze will have negative financial impacts on all institutions.

“New Brunswick’s public universities recognize the significant fiscal challenges facing the province and continue to stress the critical role of universities for the province’s prosperity,” he said.

The province’s universities have seen declining enrolment in part due to the loss of more than 550 international students following the imposition of the federal student visa cap in 2024. At the same time, the province has experienced rapid population growth, driven by an immigration and retention strategy launched in 2019.

Mr. Halpin emphasized that universities are key drivers of New Brunswick’s economic, talent attraction and population growth strategies in addition to “confirming the value and contribution of publicly funded post-secondary institutions to a successful New Brunswick.”

“It is important that the government recognize that New Brunswick public universities are an asset,” said Mr. Halpin.

Ana Lucía Pavón, president and CEO of the St. Thomas University Students’ Union, said that the status quo funding decision will negatively impact students who are continuing to struggle with affordability. However, the government’s walk back also demonstrates the value of student advocacy. Ms. Lucia, along with other student leaders, protested outside of the New Brunswick legislature as the budget was being tabled.

“We are really happy to drive the conversation from 10 per cent to 0 per cent. That’s a great win for today and a good direction for a greater win tomorrow,” said Ms. Pavón.

Provincial spending reductions will be felt across other departments, however, with the government planning to cut the civil service by 1,400 positions over three years.

The province is projecting a $1.4 billion deficit for 2026-27 with the most significant investments in health care. “Investing in New Brunswickers means making difficult decisions,” said Finance Minister René Legacy.