New Brunswick Floated Merging or Privatizing Its Universities, Then Backed Off

A memo proposed cutting universities from four to two

In mid-February 2026, New Brunswick's Department of Post-Secondary Education, Training and Labour sent a two-page discussion document to the presidents of the province's universities and community colleges. The document, reported by CBC News , floated cutting 35 to 50 million dollars from post-secondary funding by shrinking the number of publicly funded universities from four to two.

Under the scenarios described, the University of New Brunswick and Universite de Moncton would remain the two core public universities. St. Thomas University in Fredericton would close or merge into UNB, and Mount Allison University in Sackville would move outside the public funding system through privatization.

Students and faculty pushed back

Student unions and faculty associations at all four schools called on the government to drop the proposal. Representatives from the St. Thomas University Students' Union said the school was already managing tight budgets and needed more investment, not less. Faculty groups raised the same concern through outlets including the CAUT Bulletin .

Premier Holt reversed course

Premier Susan Holt confirmed St. Thomas University would not fold into UNB and that Mount Allison would not be privatized, after the backlash from students, faculty and the wider public.

The province is running a multi-year deficit, which is why the department looked at these scenarios, but none of the merger or privatization options made it into the final budget.

What the March budget did

New Brunswick tabled its 2026-27 budget on March 17, 2026.

Instead of the cuts floated in February, the budget raised university operating grants 1.7 percent to 307.8 million dollars, according to University Affairs .

With inflation projected near 2.2 percent for 2026 (the Bank of Canada's target is 2 percent), the increase falls short of covering rising costs, so university budgets stay tight even though no school closed or merged.

The 2026-27 budget also set aside 5.4 million dollars for medical education, 4.2 million dollars for foreign credential recognition, and 1 million dollars each for the New Brunswick Innovation Foundation and ResearchNB. Total post-secondary spending for the year reached 554 million dollars, up 1.6 percent from 2025-26.

What this means if you are choosing a New Brunswick university

UNB, St. Thomas, Mount Allison and Universite de Moncton all remain open, publicly funded and operating as separate institutions for the 2026-27 academic year. Admission requirements, program lists and degree names at each school stay the same as before the February proposal surfaced.

Budgets remain tight at all four schools, since the funding increase trails inflation. Watch for tuition increases, program consolidations within individual schools, or reduced course offerings as each university manages its own budget pressure, even though no cross-institution merger or privatization went ahead in 2026.

Sources

• CBC News: Holt Liberals look at merging, privatizing some universities
• CBC News: Holt government opts against cuts to post-secondary funding in new budget
• University Affairs: New Brunswick effectively freezes post-secondary funding in 2026 budget
• CAUT Bulletin: New Brunswick faculty and students wary of funding cuts