Algonquin College projecting $32M shortfall due to new rules for international students
Algonquin College is projecting a $32 million decrease in revenues due to the new federal cap on international students and changes to the eligibility for post-graduate work permits.
President and CEO Claude Brulé says international enrolment will be short nearly 2,400 incoming students, and the college will be forced to make "difficult budgetary decisions now" to deal with the funding shortfall.
"To be clear, the government policy decisions that have been announced will be with us for some time, and this will compound the financial impact on the College in the years to come," Brulé said in an open letter to Algonquin College.
"It is therefore imperative to take measures and make difficult budgetary decisions now, knowing that some actions will take time to be fully implemented and have the outcomes realized."
- Sign up now for daily CTV News Ottawa newsletters
- The information you need to know, sent directly to you: Download the CTV News App
In January, the federal government announced a temporary two-year cap on international student levels by 35 per cent this year. In September, the government announced new international student study permits will be reduced by another 10 per cent to 437,000 permits, with the target continuing into 2026. The federal government also announced changes this fall to post-graduate work permits, with the permits restricted to areas that have labour shortages in Canada.
Brulé says Algonquin College's 2024-25 second quarter projection report confirms international student enrolment will be short by nearly 2,400 incoming students in comparison to the budget target of 7,447 new international students.
An internal review has determined that approximately 65 per cent of Algonquin College's programs have been deemed ineligible for post-graduate work permits for international students based on Immigration, Refugees, and Citizenship Canada's (IRCC) new criteria, according to Brulé.
"You should note that we continue to vigorously advocate for changes to these IRCC decisions," Brulé said.
"We are collaborating with provincial and federal government, as well as post-secondary partners – including Colleges Ontario and Colleges and Institutes Canada – to emphasize the significant contributions our graduates provide in all sectors of the economy."
Brulé says Algonquin College would like to see a "level playing field" for the post-graduate work permits.
"We know government is looking for certain key sectors to attract international students into and we offer a number of programs in those areas right now that are not eligible for post-graduate work permits," Brulé tells CTV News Ottawa.
"Early childhood education is not eligible, so we want to make sure we continue to advocate to have those programs on the list so we can continue to attract the right number of domestic and international students."
In addition to the new caps on international students, Brulé says the college continues to face "sustained financial challenges" due to the ongoing freeze on domestic student tuition.
"As a result of these challenges, I have tasked the College’s Executive Team to prioritize the needs of our learners and focus on the College’s financial sustainability," Brulé said.
Algonquin College says the current mitigation measures include:
- Deferring expenses wherever practical and reasonable and reducing corporate expenditures.
- Reviewing all hiring and staffing decisions to ensure that only roles that are essential to supporting learners and priority needs are being processed.
- We will be taking a measured, fair and transparent approach in order to mitigate impacts on employees.
"To be clear, the government policy decisions that have been announced will be with us for some time, and this will compound the financial impact on the College in the years to come," Brulé said.
Brulé tells CTV News Ottawa the college will reduce spending to avoid a deficit.
"We are going to reduce non-essential spending where it's reasonable and makes sense to do so. We're going to strategically allocate our resources to our core operations to that our learners are not affected," Brulé said.
Algonquin College's International Education Centre in Toronto has closed.
In the 2024 fall term, Algonquin College had 20,980 students, with 6,246 being international students.
With files from CTV News supervising producer Stephanie Ha and The Canadian Press
CTVNews.ca Top Stories
Trump threatens to try to take back the Panama Canal. Panama's president balks at the suggestion
Donald Trump suggested Sunday that his new administration could try to regain control of the Panama Canal that the United States “foolishly” ceded to its Central American ally, contending that shippers are charged “ridiculous” fees to pass through the vital transportation channel linking the Atlantic and Pacific Oceans.
Man handed 4th distracted driving charge for using cell phone on Hwy. 417 in Ottawa
An Ottawa driver was charged for using a cell phone behind the wheel on Sunday, the fourth time he has faced distracted driving charges.
Wrongfully convicted N.B. man has mixed feelings since exoneration
Robert Mailman, 76, was exonerated on Jan. 4 of a 1983 murder for which he and his friend Walter Gillespie served lengthy prison terms.
Can the Governor General do what Pierre Poilievre is asking? This expert says no
A historically difficult week for Prime Minister Justin Trudeau and his Liberal government ended with a renewed push from Conservative Leader Pierre Poilievre to topple this government – this time in the form a letter to the Governor General.
opinion Christmas movies for people who don't like Christmas movies
The holidays can bring up a whole gamut of emotions, not just love and goodwill. So CTV film critic Richard Crouse offers up a list of Christmas movies for people who might not enjoy traditional Christmas movies.
More than 7,000 Jeep SUVs recalled in Canada over camera display concern
A software issue potentially affecting the rearview camera display in select Jeep Wagoneer and Grand Cherokee models has prompted a recall of more than 7,000 vehicles.
'I'm still thinking pinch me': lost puppy reunited with family after five years
After almost five years of searching and never giving up hope, the Tuffin family received the best Christmas gift they could have hoped for: being reunited with their long-lost puppy.
10 hospitalized after carbon monoxide poisoning in Ottawa's east end
The Ottawa Police Service says ten people were taken to hospital, with one of them in life-threatening condition, after being exposed to carbon monoxide in the neighbourhood of Vanier on Sunday morning.
New York City police apprehend suspect in the death of a woman found on fire in a subway car
New York City police announced Sunday they have in custody a “person of interest” in the early morning death of a woman who they believe may have fallen asleep on a stationary subway train before being intentionally lit on fire by a man she didn't know.