Build resilient universities

Unlocking university capacity through targeted federal policy levers to reinvest in students and talent

Students in hard hats and visibility vests learning on-site.

Canada is asking universities to do more — train more talent, strengthen research capacity and help communities grow — at a time when institutions are facing rising costs, aging infrastructure and growing demand for student services and housing.

Universities are adapting. Across the country, institutions are modernizing operations, building new partnerships and finding new ways to deliver for students and communities. But long-term financial pressures continue to limit their ability to expand capacity and respond to Canada’s evolving needs.

Targeted federal action can help strengthen financial sustainability and ensure universities can continue contributing to Canada’s economic growth and competitiveness.

Here’s how Canada can help build more resilient universities:

Modernize tax policy by increasing the GST/HST rebate for universities to align with municipalities and other public interest organizations, allowing institutions to reinvest more in teaching, research and student support.
Make it easier for universities to build student housing that helps address affordability pressures in communities across Canada.
Expand support for campus infrastructure upgrades to ensure students and researchers have access to modern learning spaces, research facilities and housing capacity needed to meet growing demand.

By the numbers

4.6%

funding drop

When adjusted for inflation, public funding for universities dropped 4.6% between 2010 and 2024, despite enrolment growing by 21.1% during this period.
12%

total revenue

Federal funding made up roughly nine to 12 percent of total university revenues from 2010 to 2023. Because it's usually targeted, it accounts for around 0.25% of university operating budgets in 2023-24.
410K

employees

The university sector employs over 400,000 workers across Canada, more than triple the direct employment of the automotive manufacturing sector.

In the spotlight

An image of a Canadian gothic college building, University College at Western University.

Spotlight

Building Canada’s competitive advantage through universities

Universities are essential to our future. They train the workforce, drive innovation and support communities across the country. They turn discovery into real-world impact, from new technologies to improved health and stronger local economies. Canadians see this clearly. Our recommendations combine strategic investments with practical measures that improve the effectiveness of existing resources and support the long-term sustainability of Canada’s university system.

Spotlight

Building resilient universities: Leading on financial sustainability

Canada relies on its universities to develop talent, strengthen competitiveness and drive economic growth. But growing financial pressures are putting that contribution at risk. A new report from Universities Canada and the Canadian Association of University Business Officers (CAUBO) finds that rising costs, growing infrastructure needs and a widening funding gap are placing the university system under increasing strain.