The province is injecting $6.4 billion in new funding into the province’s post-secondary sector as part of a sweeping plan to stabilize colleges and universities, expand in-demand programs and adjust tuition and student aid rules beginning in fall 2026.
Colleges and Universities Minister Nolan Quinn said the investment will help institutions respond to financial pressures, including reduced international student revenues linked to recent federal changes. The funding will be delivered over four years and increase annual operating support to $7 billion — a 30 per cent rise and the highest level in Ontario’s history.
Quinn adds the new long-term funding model will support 70,000 additional seats in programs aligned with labour market demand, while better supporting small, rural, northern, French-language and Indigenous institutions.
Ontario will also introduce a revised tuition framework. Publicly assisted colleges and universities will be permitted to increase 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.
Quinn explains the reasoning for this approach.
Low-income students will have the added tuition costs covered through an enhanced Student Access Guarantee, the government said.
Changes are also coming to the Ontario Student Assistance Program. Beginning in fall 2026, students will be eligible to receive a maximum of 25 per cent of OSAP funding as grants, with at least 75 per cent provided as loans. Grants will no longer be available to students attending private career colleges, aligning with recent federal policy changes.
Finance Minister Peter Bethlenfalvy said the reforms aim to strengthen long-term sustainability while ensuring responsible fiscal management.
Sector leaders welcomed the funding. Colleges Ontario and the Council of Ontario Universities said the investment will support economic growth, workforce development and research excellence.
The government said the measures are designed to maintain access to high-quality education while ensuring the long-term viability of Ontario’s postsecondary institutions.