Colleges and universities across northeastern Ontario are suspending academic programs and reducing staffing levels due to a sharp drop in international student enrolment, driven by recent federal immigration policy changes and provincial tuition caps.
According to a report by CBC News, the new federal rules limit international student permits and restrict access to post-graduate work permits, while the Ontario government continues to freeze domestic tuition rates. These combined pressures are forcing institutions to reevaluate budgets and reduce offerings.
Algoma University Responds to Budget Shortfall
Algoma University in Sault Ste. Marie, a city in Ontario, expects enrolment to drop by 50%, which would reduce its annual revenue from $264.6 million to $123.5 million for the 2025–26 academic year. Interim president, Donna Rogers, said the university will suspend admissions to five programs with low enrolment.
“We are in a situation where we cannot continue to do what we’ve been doing,” Rogers told the university senate.
“It is a stark realisation that if we don’t start to do something, then the entire university is in jeopardy.”
Rogers added that the decline was not anticipated a year ago. She attributed the downturn to federal decisions made after institutional budgets had already been finalised, including significant cuts to international study permits and post-graduate work permit eligibility.
Despite avoiding layoffs so far, Vice-President of the Algoma faculty union, Alice Ridout, said there has been a noticeable reduction in the number of contracts issued to sessional instructors and an increase in cancelled summer courses.
Cambrian College Eliminates Positions, Suspends Programs
Cambrian College in Sudbury is eliminating 22 positions to address a $40 million revenue shortfall. Although no staff have been laid off, the college has suspended 10 academic programs for the next academic year.
According to Cambrian, most of the affected programs were formerly popular among international students who were seeking post-graduate work opportunities. Since recent policy changes removed work permit eligibility for many of these programs, enrollment dropped.
Neil Shyminsky, president of OPSEU Local 655, which represents Cambrian faculty, acknowledged the college’s efforts to avoid layoffs but warned of continued uncertainty.
“It is incredibly difficult to see more than a year into the future at this point,” he said. “We have rule changes regarding international students and the programs they’re allowed to register in being announced every few months.”
Northern College and Sault College Face Similar Strains
Northern College, with campuses in Timmins, Kirkland Lake, Haileybury and Moosonee, projects a $12 million deficit for the next academic year. While there have been no reported terminations, 13 faculty members have taken early retirement, significantly reducing staffing levels.
Neal McNair, president of the union local for full- and part-time faculty at Northern, said he expects the faculty number to settle at about 70, which he describes as the lowest in over two decades at the institution.
“My hope is that we’re able to run,” he said.
Sault College has also suspended several programs and is set to announce its full budget in June. President David Orazietti indicated that program cuts and staffing adjustments remain possibilities.
“Hopefully, looking forward, the government will consider, and there have been discussions around considering, a review of the funding formula,” said Orazietti, a former provincial cabinet minister.
Government Response and Sector Outlook
Post-secondary institutions (colleges and universities) have been calling for an end to the domestic tuition freeze and increased public funding. Ontario’s Minister of Colleges, Universities, Research Excellence and Security, Nolan Quinn, was unavailable for comment.
However, a spokesperson for the ministry referenced existing funding commitments. “Coupled with our historic investment of $1.3 billion last year, and on top of the $5 billion we put into the sector every year, funding for colleges and universities is higher than ever,” said Bianca Giacoboni.
Despite these investments, administrators and faculty representatives say more flexibility and sustained policy clarity are needed to support the sector moving forward.
