In a strategic move to achieve sustainable migration levels, Canada will significantly lower the number of temporary residents accepted, including international students, over the next three years. This initiative, announced in the federal government’s 2025 budget, reflects a wider effort to recalibrate immigration practices amid public worries over rapid population growth from temporary residents. From a projected 673,650 temporary resident admissions in 2025, numbers will drop to approximately 385,000 in 2026 and further down to 370,000 by 2027 and 2028. This decision also coincides with a stabilization of permanent resident admissions at 380,000 annually, slightly reduced from an earlier plan of 395,000 for 2025.

The most significant alteration pertains to international students, with the government planning to cut the number of study permits by around 50%. This means annual admissions will decrease from about 305,900 to 155,000 by 2026, remaining at 150,000 for the subsequent two years. The government’s budget document highlights public concerns over the rapid increase in temporary residents, whose share of the national population has grown considerably, from 3.3% in 2018 to 7.5% in 2024. This steep rise has placed immense pressure on essential services, including housing, healthcare, and education, rendering the current trajectory unsustainable.

This shift in policy reflects a significant recalibration of Canada’s previous open-door strategy for international education, which had been an economic driver and a way to cultivate a skilled workforce. Higher education institutions that rely on international tuition will likely experience substantial financial challenges, with some universities indicating that lower international enrolment might lead to program cuts and staffing changes. Finance Minister François-Philippe Champagne accentuated the commitment to attracting top talent through more focused initiatives. The budget also allocates $1.7 billion to recruit renowned international researchers and create pathways for H-1B visa holders from the United States to migrate to Canada.

The halving of international student admissions marks a pivotal moment for Canada’s higher education system. Colleges and universities are now poised to reassess their financial models and may have to modify recruitment strategies as well as increase domestic enrollment. As the full immigration plan from Immigration Minister Lena Diab unfolds, education leaders are keenly awaiting specifics on how these forthcoming changes will align with Canada’s ongoing commitment to attracting global talent while maintaining a balanced immigration framework.