The Canadian government has unveiled a comprehensive, multi-year plan to drastically reduce the number of new international study permits, a measure expected to reshape the country’s higher education sector. Liberal Prime Minister Mark Carney’s first federal budget, will slash the target for new international students by more than half over the next three years.
The Scale of the Reduction
The new targets are set to significantly cut down on the number of new arrivals:
- The 2025 target for new international students was set at 305,900.
- The target for 2026 is proposed to be reduced to 155,000.
- The targets for the following two years, 2027 and 2028, are both set at 150,000 new arrivals.
These figures apply only to new international study permits, excluding extensions. This policy builds on earlier caps, which saw a 35% cut in 2024 and a further 10% reduction this year.
Driving Factors and Economic Rationale
The government justifies the severe measures as part of a larger goal to achieve sustainable immigration levels, aiming to reduce overall temporary resident admissions from approximately 670,000 in 2025 to 370,000 over the next three years. This near 45% decrease is prompted by the recognition that temporary migration, which peaked at 7.5% of the total population in 2024, is putting “unprecedented growth” pressure on Canada’s housing supply, healthcare, and schools.
Some experts believe the targets simply reflect the reality of current arrival rates. Alex Usher, president of Higher Education Strategy Associates, noted that these “cuts” are essentially targets catching up to reality, arguing that the financial damage to institutions “already happened.”
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Targeting High-Skilled Talent
Despite the massive reduction in overall student numbers, the budget allocates substantial resources to attract highly skilled global talent. A sum of CA$1.7 billion over 13 years is designated for a new International Talent Attraction Strategy and Action Plan. This initiative aims to support the recruitment of over 1,000 international researchers, doctoral students, and post-doctoral fellows.
Furthermore, the budget details plans for an “accelerated pathway for H1-B visa holders” to attract top talent in healthcare, research, and advanced industries, specifically from the United States. In a positive move for current immigrants, the budget also allocates CA$97 million over five years to improve foreign credential recognition, focusing on addressing labour shortages in health and construction sectors, where many highly educated immigrants are currently overqualified for their jobs.
Industry Reaction and Future Advocacy
Stakeholders have offered mixed reactions. While appreciating the investment in high-skilled talent, many argue the twin goals are conflicting. Universities Canada President Gabriel Miller stated that while he recognizes the effort to build a sustainable system, the plan must match the government’s economic agenda. Chris Busch, Assistant Vice President of Enrolment at the University of Windsor, emphasized the critical need for serious investment in labs, placements and support structures.
Amidst policy upheaval, the Canadian Bureau for International Education (CBIE) is launching a new campaign to address confusion and reassure the global community about Canada’s commitment to academic excellence and inclusiveness. As the full details of the Immigration Levels Plan 2026-2028 are pending, institutions remain committed to advocating for “practical solutions that promote predictability, coordination and support for responsible institutions.”
