The federal government of Canada has announced a significant reduction in the number of temporary residents, particularly international students, over the next three years. The decision, released as part of the government’s 2025 budget and immigration-levels plan, signals an attempt to bring migration rates back to what Prime Minister Mark Carney has termed
“sustainable levels”.The plan reduces temporary resident admissions from 673,650 in 2025 to 385,000 next year, and further to 370,000 annually in 2027 and 2028. At the same time, the government will stabilise permanent resident admissions at 380,000 per year, down from 395,000 planned for 2025.
International student intake halved
The most notable change concerns international students. Ottawa will cut the number of study permits by around 50%, reducing annual admissions from approximately 305,900 to 155,000 in 2026, and 150,000 in 2027 and 2028.
This decision, according to the government’s budget document, follows public concern over the rapid rise in temporary residents, whose share of the national population more than doubled — from 3.3% in 2018 to 7.5% by 2024. The report notes that this
“unprecedented rate of growth” has placed strain on housing supply, the health care system, and schools, rendering it “no longer sustainable”.
Economic recalibration
While Canada has long relied on international education as both an economic driver and a pathway to talent acquisition, the new plan marks a recalibration of that strategy. Higher education institutions, which depend heavily on international tuition fees, are expected to face financial repercussions. Many universities have already warned that reduced international enrolment could lead to programme cuts and staffing challenges.
Finance Minister François-Philippe Champagne stated that Canada would continue to attract
“the best and the brightest”, but through more targeted measures. The budget introduces $1.7 billion in funding for initiatives to recruit over 1,000 leading international researchers, alongside new pathways for holders of United States H-1B visas to relocate to Canada.
Implications for higher education
For Canada’s universities and colleges, the halving of international student admissions marks a turning point. The move may reshape financial models built around international tuition, while also prompting institutions to rethink recruitment strategies and domestic enrolment policies.
As the full immigration-levels plan, to be released by Immigration Minister Lena Diab, is expected to detail sector-specific pathways, education leaders await further clarification on how these shifts will be balanced with Canada’s continued ambition to attract global talent.
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