Which Canadian Universities and Colleges Are Running Deficits in 2025-26
By Muntasir • Published Aug 21, 2026 • Updated Sep 20, 2026 • Canadian Universities & Colleges, Canada Higher Ed News & Policy
Canadian universities enter 2025-26 with multi-million dollar deficits after Ottawa's international study permit caps cut a major revenue source. Waterloo, York, Concordia, Dalhousie, Windsor and Universite de Montreal all posted shortfalls, and some project deficits into 2026-27.
💵 Waterloo: $44 million structural deficit for 2025-26
York: $80 million budget gap targeted for closure in 2025-26
Concordia: near $32 million deficit
Dalhousie: $20.6 million deficit, international enrolment down from 4,279 to about 3,382 students
Windsor: cut from $42 million to $4.6 million with emergency provincial help
Universite de Montreal: $9.7 million shortfall
Federal caps cut the revenue Canadian universities relied on
Ottawa capped international study permits starting in 2024, after years of open growth. The target dropped from 485,000 permits in 2024 to 437,000 for 2025, then to 408,000 for 2026, a 7 percent cut announced by Immigration, Refugees and Citizenship Canada on November 25, 2025.
International students pay tuition several times higher than domestic students at most schools, and that revenue covered a growing share of operating budgets through the 2010s and early 2020s. When permit numbers fell, so did the money. Several universities now report multi-million dollar deficits for 2025-26, and some project the gap continuing into 2026-27.
Deficits by university, 2025-26
| Institution | Province | 2025-26 deficit | Main driver |
|---|---|---|---|
| University of Waterloo | Ontario | $44 million structural deficit | International enrolment limits, frozen domestic tuition |
| York University | Ontario | $80 million budget gap targeted for closure | Multi-year recovery plan after a $142 million deficit |
| Concordia University | Quebec | Near $32 million | Drop in rest-of-Canada and international enrolment |
| Dalhousie University | Nova Scotia | $20.6 million | International enrolment down from 4,279 to about 3,382 students |
| University of Windsor | Ontario | $4.6 million, down from $42 million | International share of students fell from 25% to 20% |
| Universite de Montreal | Quebec | $9.7 million | Same national enrolment trend |
Quebec's universities together face a shortfall near $200 million from the same enrolment drop, according to CBC News .
How schools are closing the gap
Most institutions responded with hiring freezes, administrative layoffs and course cancellations rather than one large cut. Dalhousie raised tuition for some international programs and trimmed spending in every faculty, according to the Dalhousie Gazette .
Windsor closed most of its gap partly through an emergency payment from Ontario's Ministry of Colleges, Universities, Research Excellence and Security, alongside $11.2 million in staff reductions, according to CBC News . York's multi-year plan defers digital projects and building renovations while phasing toward balance later in the decade, according to York University .
What it means if you are choosing a school
Ask directly whether your program is under review before you commit, not whether it is simply listed as active.
Expect larger class sizes and fewer electives at schools mid-deficit, even where core programs stay open.
Check whether a tuition increase already applies to your intended start year. Some institutions raised fees for specific faculties ahead of any province-wide change.
Deficits affect the whole student body through advising, lab access and residence maintenance, not only international students.