On Nov. 4, Prime Minister Mark Carney released his long-anticipated 2025 budget, which has been criticized for projecting a $78 billion CAD deficit—despite Canada’s stated commitments to reduce its deficit—and for cutting public service jobs. Supporters argue that the new budget will contribute to stabilizing the country’s long-term fiscal outlook, and lay the groundwork for a stronger economy. The Tribune explains the contested budget’s student-specific impacts.
How does the budget affect international students?
The budget makes substantial cuts to immigration levels in Canada, including reductions to the number of study permits the country will issue. This will directly affect universities like McGill that benefit from international talent and revenue from higher international tuition rates. The total number of international student permits Canada offers will fall from 437,000 to 408,000—a 16 per cent total drop from the 2024 federal cap of 485,000 study permits.
How will the cuts to international student permits affect McGill?
McGill is projecting a $45 million CAD deficit for the 2025–2026 fiscal year, a shortfall that has already resulted in layoffs and a hiring freeze expected to amount up to 500 total job losses. The university attributes these financial pressures to declining international student enrolment and the Quebec government’s decision in October 2023 to raise tuition for both international and out-of-province students. The federal budget’s restrictions on international student permits may exacerbate financial strain at McGill.
In April 2025, a Quebec court overturned the province’s planned Canadian tuition hike, which would have increased these students’ fees by $3,000 CAD, or 33 per cent. However, the required minimum $20,000 CAD provincial pricing for international tuition, along with the government’s ability to redistribute some of that revenue from English universities to French universities, remains in place.
How will the budget affect students receiving Canada Student Grants?
Although 586,000 students received $2.6 billion CAD in Canada Student Grants money from 2023–2024, the 2025 budget allocates only $1.2 billion CAD to these federal student aid bursaries, which offer assistance to full-time Canadian students with financial need. The budget projects further cuts to the program until 2030.
According to some experts, it is unclear whether these Canada Student Grants cuts are intentional or the result of errors, as they could reverse 2019 Liberal commitments to expand funding for the program.
What are some benefits in the budget for students?
The 2025 budget earmarks some benefits for students and young Canadians. Over the next three years, the government will allocate more than $1.5 billion CAD to student training and employment initiatives.
The budget will increase funding to help students find jobs through an increase of $594.7 million CAD to the Canada Summer Jobs wage subsidy, which funds youth summer employment. The budget also designates $635.2 million CAD to support roughly 55,000 co-op placements for post-secondary students.
Furthermore, the budget increases funding to help young people receive professional training, allocating an additional $307.9 million CAD to the Youth Employment and Skills Strategy, which offers hands-on training and work experience.
The budget plans to provide $40 million CAD over two years to launch an inaugural Canadian Youth Climate Corps, which will provide paid training for youth to engage in climate response work and other sustainability-focused career paths.
What are some benefits in the budget for universities as institutions?
There are also some positives to the budget for universities: It allocates $1.7 billion CAD over the next 13 years for universities to recruit international researchers, assist international PhD students settling in Canada, and improve and fund university research infrastructure.
