Ontario universities are projecting that the federal government's cap on international students will result in a $1 billion loss in revenues over two years. 

The Council of Ontario Universities (COU) released a statement on Friday morning, which highlighted the financial impact of federal changes to international student study permits. 

Back in January, Immigration Minister Marc Miller announced a federal intake cap on international student permit applications to stabilize new growth for a period of two years. For 2024, the cap is expected to result in approximately 360,000 approved study permits — a decrease of 35 per cent from 2023. 

The temporary measures are set to be in place for two years, and the number of new study permit applications that will be accepted in 2025 will be re-assessed at the end of this year. 

As a result of these changes, President and CEO of COU Steve Orsini says Ontario universities are projecting financial losses of more than $300 million in 2024-25, compared to 2023, doubling to more than $600 million the following year, if trends continue.

According to Orsini, this represents nearly a $1 billion financial impact in the first two years alone, and additional changes announced last month are expected to result in further losses. 

"The inclusion of Master's and PhD students within the international student cap adds further complexity to the application process and risks discouraging even more highly skilled students from applying to Canada," Orsini said. 

"With a long history of responsibly supporting international students, Ontario's universities have only modestly increased international student enrolment over the years, while providing comprehensive services to all students. Even before federal changes, international students represented less than 20 per cent of all students at Ontario's universities." 

With the extended cut and freeze to tuition and several years of higher inflationary costs, Ontario universities say they are facing significant financial challenges.

"Even after factoring in the provincial government's funding for STEM in 2023-24, announced last February, 10 universities are facing more than $300 million in deficits in 2023-24. These deficits are expected to increase in 2024-25, and do not include the impact of recent changes to international student study permits," Orsini continued. 

While the COU recognized the federal government's need to address "bad actors" who increased international student enrolment without the necessary support, it noted that these changes resulted in "significant collateral damage" to the province's universities. 

"International students play a vital role within the social and economic fabric of the province and our country. University-level international students provide the top talent that Ontario needs to boost economic growth and compete globally," Orsini added. 

The COU is urging the province to protect universities' existing allocation of provincial attestation letters from further cuts, and ensure the full allocation of spaces that Ontario receives for Master's and PhD students and other university-based programs go to Ontario universities.