The 2025 federal budget was tabled on November 4. Titled Canada Strong, with a cover of an icebreaker to emphasize sovereignty and navigating choppy waters, there are few lifelines for students, academic staff and workers at Canadian post-secondary institutions.
Science and research are recognized as foundational, with cuts to the Tri-Agencies limited to 2%. The significant investments made in Budget 2024 to scholarships, fellowships and grants appear to be protected. The government has also promised $1.7 billion as an International Talent Attraction Strategy to recruit international researchers to Canadian universities.
Yet the environment for such a strategy is increasingly challenging. Canadian researchers and educators are facing unprecedented job losses, program cuts, and increased workloads because of inadequate public funding exacerbated by the federal cap on international student visas. For example, of the U15 institutions, key partners in the strategy’s success, over half are reporting deficits and some have implemented hiring freezes.
Budget 2025 will limit new international study permits to 155,000 in 2026, dropping to 150,000 in 2027 and 2028, and is silent on a plan to sustain homegrown talent impacted by the simmering financial crisis facing post-secondary education and research.
There is an urgent need to couple the international talent recruitment with a Canadian talent retention strategy to grow our science and research capacity and ensure high-quality, affordable public post-secondary education.
Science and research funding highlights
- 2% cuts to the base budgets of the granting agencies, compared to the 15% reductions affecting other departments and agencies. How these cuts will be realized across the Councils was not disclosed in the budget.
- $1 billion over 13 years, starting in 2025-26, to the Natural Sciences and Engineering Research Council, Social Sciences and Humanities Research Council, and Canadian Institutes of Health Research to launch an accelerated research chairs initiative to recruit exceptional international researchers to Canadian universities.
- $133.6 million over three years, starting in 2026-27, to the granting councils to enable top international doctoral students and post-doctoral fellows to relocate to Canada.
- Up to $120 million over 12 years, starting in 2026-27, to the granting councils to support universities’ recruitment of international assistant professors, as appropriate.
- $400 million over seven years, starting in 2025-26, to the Canada Foundation for Innovation to establish a complementary stream of research infrastructure support to ensure the recruited chairs have the equipment they need to conduct research in Canada.
- The Canada Foundation for Innovation will see a sunsetting of some programs, with funding dropping by approximately $80 million over five years.
- Work to implement the capstone research organization as announced in Budget 2024. No further details given.
- An examination of whether Canada’s research ecosystem requires further support to retain talent.
International Student Program
- A cap of 155,000 new study permits per year in 2026, dropping to 150,000 in 2027 and 2028
- A one-time measure will transition up to 33,000 work-permit holders to permanent residency in 2026-27, which could support integration of current students and graduates
- Following the budget, Immigration, Refugees and Citizenship Canada clarified that they have reversed limitations on international graduate student recruitment
Students and apprentices
- During the pandemic, the maximum student grant rose from $3,000 to $6,000, still less than the average undergraduate tuition. Post-pandemic, the maximum grant amount is $4,200, which was extended for one more year in this budget.
- Budget 2025 removes eligibility for grants for students at private for-profit institutions. The following youth programs were renewed:
- Student Work Placement Program with $635.2 million over three yearsCanada Summer Jobs with $594.7 million over two years
- Youth Employment and Skills Strategy with $307.9 million over two years starting 2026-27 for training, mentorship and wraparound support
- A new Youth Climate Corps was announced of $40 million over two years, starting in 2026-27.
- The Union Training and Innovation Program, which supports union-based apprenticeship training in the Red Seal trades, received $75 million over three years. The Liberal platform promise to increase apprenticeship grants to $8,000 does not appear in the budget.
Indigenous education
The budget includes a 2% reduction for both Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs, which is less than the broad 15% reduction faced by other government departments. There are no new investments in social infrastructure, such as supports for Indigenous post-secondary education, which is woefully underfunded.
Campus infrastructure
Universities and college infrastructure could be supported by the new Build Communities Strong Fund, to be administered by Housing, Infrastructure and Communities Canada.
$17.2 billion over 10 years has been allocated to support provincial and territorial infrastructure projects and priorities. To access funds, provinces and territories must agree to match federal funding, substantially reduce development charges, and not levy other taxes that hinder the housing supply.
Examples of projects named in the budget include Toronto Metropolitan University School of Medicine’s new student building at the Brampton campus, the establishment of primary care teaching clinics in surrounding communities, and the Inuit Nunangat University.
Statistics Canada
To achieve up to 15 per cent in savings targets over three years, Statistics Canada will adjust the frequency and level of detail collected for data sets that demonstrate less relevance to Canadians.
CAUT will be reaching out Statistics Canada to learn what impact this may have on vital datasets related to post-secondary education in Canada.
Budget 2025 proposes to reallocate $25 million over six years for Statistics Canada to implement the Artificial Intelligence and Technology Measurement Program (TechStat). TechStat will use data and insights to measure how AI is used by organizations and understand its impact on Canadian society, the labour force, and the economy.
Industry-led research
- $925.6 million over five years to support a large-scale, sovereign, public AI infrastructure
- $334.3 million over five years to strengthen Canada’s quantum ecosystem
- $68.2 million over three years to create the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) to coordinate advanced research in defence technologies
- Further increases to the Scientific Research and Experimental Development (SR&ED) program annual expenditure limit on which enhanced credit can be earned from $4.5 million (as previously announced) to $6 million
Conclusion
Budget 2025 shifts resources toward record defence spending, tax cuts and incentives while providing little core operational investments in the public services Canadians rely on. These choices erode the capacity needed to sustain education, health care and other critical social infrastructure. The targeted initiatives to attract international talent are welcomed. However, they cannot replace the steady, long-term investment required to grow and retain Canadian talent and strengthen our national knowledge foundation, grounded in high-quality, affordable and accessible post-secondary education.
