Ontario budget reaffirms $6.4 B post-secondary funding boost, adds money for infrastructure 

A “strong” post-secondary sector, representing a 5.7 per cent slice of the provincial expense pie, was among the “strategic priorities” named in the Ontario budget Thursday, along with the importance of “homegrown research” by universities, colleges, research hospitals and research institutes to keep Ontario businesses on top of innovation.

The budget’s dollar details confirmed the Progressive Conservative government’s Feb. 12 announcement of a $6.4 billion infusion to the post-secondary sector over four years, along with an end to the province’s tuition freeze. The budget contained no further information about how the money will be rolled out. 

The new funding “will ensure the sustainability of our colleges, universities and Indigenous institutes, and help prepare graduates to develop the skills they need to find good-paying, rewarding careers,” said Ontario Finance Minister Peter Bethlenfalvy. “This funding will also ensure that the province’s world-class institutions are sustainable and continue to produce one of the most competitive workforces in the G7 for years to come.” 

The $244.2-billion budget, called “A Plan to Protect Ontario,” came in the midst of global economic uncertainty and focused on boosting key industries such as critical minerals; improving affordability through tax breaks for small business and new home buyers; and reassuring public servants that the government is not planning mass layoffs, in part due to its management of public service growth.  

It was accompanied by a $13.8-billion deficit for the next fiscal year, $6 billion more than was forecast by Premier Doug Ford’s government last fall, continuing a trend seen in other provinces as governments deal with economic challenges such as U.S. tariffs and trade deal uncertainties.

New post-secondary infrastructure funding announced 

Building on the Feb. 12 announcement, there were a few new items impacting the post-secondary sector.

Universities are to receive $202 million in money for infrastructure in the next fiscal year, compared to $212 million budgeted for 2025-2026, and a total of $1.48 billion over the next 10 years, including capital grants for critical repairs, energy efficiency improvements and technology upgrades.

There will be an additional $117.1 million over three years through the Ontario Research Fund-Research Infrastructure to build, renovate and equip research facilities for “critical projects” across priority sectors including agri-food, critical minerals, information technology, life sciences and manufacturing. This comes on top of more than $47 million announced in January to support 195 research projects at universities, colleges and hospitals.

That commitment “gives a very clear signal that the province is going to work with the federal government to jointly fund cutting-edge research infrastructure,” said Steve Orsini, president and CEO of the Council of Ontario Universities (COU). He said it shows Ontario is ready to capture any matching research infrastructure funds offered by Ottawa, growing the total amount available for research projects. “Given the need to provide certainty to the researchers, this is welcome news,” Mr. Orsini said. 

The council was also pleased that the province highlighted economic sectors universities excel in, Mr. Orsini said. As well, the budget gives longer-term financial certainty for university planners, he said, and contains items that, while not specifically earmarked for postsecondary, will positively impact it through ripple effects, such as a cut in the small business tax from 3.2 to 2.2 percent with potential to help university incubator start-ups, and investments in key industries. 

“Not only were we pleased with the Feb. 12 announcement, but the budget goes further to support students, to support universities, to support the research ecosystem that will help universities generate the talent our industry needs, [and] drive the research and innovation that will boost productivity,” Mr. Orsini said.

In other funding highlights: 

• The government is allocating $124.2 million over the next three years for clinical education funding for an additional 2,000 seats for registered nursing students and 1,000 registered practical nursing students. 

• Université de Sudbury will receive $21.6 million over three years to relaunch French-language courses in partnership with the University of Ottawa 

• Toronto Metropolitan University will receive $83 million through the Building Ontario Fund for the first phase of a student housing development. 

• The government will provide $26 million over three years in support of Ontario research institutes. 

• Ontario will contribute $6 million over three years for Ontario post-secondary student scholarships under the national Queen Elizabeth Scholars Program run by the Rideau Hall Foundation. 

Skeptics doubt whether funding is sufficient 

The Ontario Confederation of University Faculty Associations was less enthused, questioning how far the additional $6.4 billion will go. Rob Kristofferson, the association’s president, said the funding boost still breaks down to $1.6 billion a year to be split between colleges and universities. Given projected deficits he saw prior to the February cash infusion announcement, the extra money may amount to only “a temporary fix,” he said. COU had forecast a $526 million shortfall in 2026-27, deepening to $777 million the following year and to $1.3 billlion in 2028-29.

“After the second year, I don’t see how this money is even going to keep Ontario universities out of deficit,” said Dr. Kristofferson, who also wondered if the additional money would come with efficiency-focused conditions attached. “It may help Ontario universities to tread water but it’s not a permanent solution.”

Students push back on OSAP grant cuts 

The Canadian Federation of Students-Ontario stated in a news release Thursday that it was “disappointed but not surprised by the deprioritization of education” in the budget. “This budget leaves students asking, where is the funding and where is the funding for OSAP grants?”  Omar Mousa, the group’s national executive representative, said in the release. 

The government has already received major pushback from student groups about its plan, also announced in February, to move to a mainly loans-based Ontario Student Assistance Program (OSAP). Since 2017 the program has allowed for grants to constitute up to 85 per cent of a student’s aid package, although many students receive a lower percentage. 

The government has said the program had become unsustainable. The budget document stated that student financial assistance cost the government nearly $1.9 billion in 2024-25, rising to nearly $3 billion in 2025-26. Those costs are projected to drop to about $2.4 billion in 2026-27. However, the move to the primarily loans-based program will add to the province’s own borrowing, the budget shows, with net loans and investments rising from a budgeted $1.2 billion in 2025-26 to $5.2 billion in 2026-27, most of that for OSAP loans.

Dr. Kristofferson said his association’s own analysis suggests that 69 per cent of the province’s additional investment into colleges and universities is accounted for through the planned cut to student aid grants.