The 2025 federal budget misses a key opportunity to recognize the workforce development role of public colleges and their contributions to the regional economies they support.
The new Build Communities Strong Fund, which includes access for public college infrastructure such as new trades facilities, reflects Colleges Ontario’s call for stronger funding guardrails that prioritize public institutions. These investments will help colleges expand training infrastructure and ensure students have the supports and tools they need to succeed.
A skilled, adaptable workforce will be the backbone of every major nation-building effort. Renewed funding for the Student Work Placement Program will help more youth, including international and newcomer students, become the builders, caregivers, innovators and first responders Canadians rely on.
However, while Budget 2025 recognizes the value of international research talent, it fails to acknowledge the crucial contributions of college-educated international students as skilled workers and entrepreneurs across Canada. The reduction in international study permits to 150,000 per year—a 73-per-cent drop from 2023—could cut Ontario colleges’ international tuition revenue up to $2.5 billion.
As Ontario is undertaking a funding formula review, the sector has already cut $1.8 billion, suspended 600 programs and eliminated 8,000 positions. This further destabilizes colleges in Ontario and the communities they serve, underscoring the urgent need for Ontario to complete its funding formula review and respond to federal policies.
There are positive signals in Canada’s budget:
- Ontario’s military-connected campuses are ready to support new federal defence initiatives, including BOREALIS and the Defence Industrial Strategy.
- Focusing Canada Student Financial Assistance on public-institution students strengthens program integrity and supports domestic recruitment.
- The Foreign Credential Recognition Action Fund will improve fairness and speed in recognizing international credentials, especially in health care and construction.
- The new Personal Support Worker Tax Credit, along with higher investments in the Health Infrastructure Fund and Canada Health Transfer, supports college graduates and strengthens health-care capacity in communities across Ontario.
At a time of technological change and generational transition, Colleges Ontario urges both the federal and provincial governments to fully leverage Ontario’s colleges to achieve national goals and protect Ontario’s economic future.
Ontario colleges continue to work with the province to address these significant issues in our sector impacting local and provincial economies.