Canada plans to cut new international study permits by more than half between 2026 and 2028, with Prime Minister Mark Carney’s first federal budget outlining a major reduction as part of a broader effort to recalibrate immigration levels.
The plan would lower the number of new international study permits from 305,900 in 2025 to just 155,000 in 2026, and 150,000 for the two years after that, ICEF Monitor reported. Finance minister François-Philippe Champagne said the government was “taking back control of our immigration system and putting Canada on a trajectory to bring immigration back to sustainable levels,” Pie News reported.
The move follows earlier reductions of 35% in 2024 and 10% this year, as Ottawa seeks to ease strain on housing, healthcare and education systems caused by record migration. International students arriving in Canada have already dropped by 60% in the first half of 2025.
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Experts say the new targets are less a fresh cut than a reflection of current realities.
“These ‘cuts’ to new visas issued aren’t really cuts but rather targets catching up to reality,” noted Alex Usher, president of Higher Education Strategy Associates. “The damage to institutional finances… aren’t going to happen next year; they’ve already happened,” Pie News reported.
The budget also includes CA$1.7 billion (US$1.21 billion) over 13 years for an International Talent Attraction Strategy to recruit more than 1,000 top researchers, doctoral students and postdoctoral fellows from around the world.
However, education leaders say the government’s goals appear contradictory: tightening student visa caps while investing in global talent.
“The budget highlights a need for engineers, scientists, tradespeople, and healthcare professionals,” said University of Windsor vice president Chris Busch, calling for “serious investment in labs, placements and support structures for both domestic and international students,” according to Pie News.
The budget also promises CA$97 million over five years to improve foreign credential recognition and address labor shortages, particularly in health and construction. Meanwhile, the Canadian Bureau for International Education has launched a new campaign to “reintroduce Canada to the world” after months of mixed messages about its openness to international students.
In a policy update on Nov. 5 however, the Canadian government has announced that international master’s and PhD students enrolling at public institutions will be exempt from federal study permit caps starting January 2026.
The exemption is “an important step towards rebuilding Canada’s immigration system in a sustainable manner, focused on attracting top talent and leveraging our reputation as a global destination for excellence,” Robert Asselin, CEO of U15 Canada, said in a press release.
