The first federal budget of Mark Carney’s premiership has been broadly welcomed by Canada’s universities as a “decisive step” towards reinforcing the country’s research strengths – although it continued to cut student visas.

The plan announced on 4 November includes billions of dollars in spending on defence and infrastructure, along with some cuts to the civil service, as Ottawa seeks to navigate a “generational shift” in its relationship with the US under president Donald Trump.

But the government did little to boost hopes of a recovery in international enrolments. Canada’s higher education institutions have suffered financially from the imposition of significant caps on international student numbers in recent years, and some hoped the budget would lift them. Roughly 360,000 people entered the country on new study permits in 2024 but the government is on track to approve just 80,000 this year, way below the 437,000 cap set for 2025.

In announcing ” alongside the budget, however, immigration minister Lena Diab said this was a “start” but there was “more work to do” to further reduce numbers. Under the updated plan, the government will issue about 150,000 new study permits in each of the next three years. This represents a cut of more than half from the previous projections of 385,000 in 2026 and 370,000 in 2027 and 2028.

����Vlog

The budget, which was introduced by finance minister Francois-Philippe Champagne, did commit to a new International Talent Attraction Strategy and Action Plan that will support universities in recruiting top researchers and driving R&D-based growth. Universities will be included in a C$51 billion (£28 million) infrastructure fund and in the C$925.6 million fund that will go towards creating a large-scale “sovereign” public AI infrastructure.

Universities Canada welcomed the inclusion of the National Research Council Canada; the Natural Sciences and Engineering Research Council of Canada; and Innovation, Science and Economic Development Canada in the C$1.69 billion Defence Industrial Strategy.

����Vlog

“This budget invests in people who will help build Canada’s future,” said Gabriel Miller, president and chief executive of Universities Canada. “With strong, sustained partnership, universities are ready to turn these commitments into the skilled workforce our country needs to grow and thrive.”

But the body said that “efforts to build a sustainable immigration system that welcomes those seeking to study at Canada’s world-class universities...must match this government’s talent and economic agenda”.

The U15 organisation of Canadian research universities welcomed the ambitious talent recruitment strategy and the government’s intent to limit the impact of spending cuts on the federal granting agencies.

“In a moment when the global economy is undergoing a profound transformation and Canada is facing the urgent need to secure its economic future, today’s investment signals a decisive step toward reinforcing Canada’s position as a global destination for research excellence,” said Robert Asselin, chief executive of U15 Canada.

����Vlog

“As the prime minister identified in his recent speech at the University of Ottawa, Canada is known for its world-class universities, scientific excellence, and strong commitment to academic freedom. Now is the time to build on those strengths,” added Asselin.

And policy non-profit Evidence for Democracy (E4D) was pleased by the budget’s emphasis on scientific research and innovation and its attempts to bolster Canada’s research talent pipeline.

Félix Proulx-Giraldeau, interim executive director of E4D, said it provides an encouraging investment into next-generation researchers and research support systems, although he said challenges and opportunities lie ahead.

“We note that the upcoming expenditure review will introduce reductions across many scientific federal agencies, impacting our world-class researchers and scientists,” added Proulx-Giraldeau.

����Vlog

“Given that this review also includes significant structural and policy changes, this leaves some concern over the long-term impact these reductions will have on our research community.”

Given the budget was developed in the context of “significant fiscal restraint”, Thomas Bailey, executive director of the advocacy group Support Our Science, said he was encouraged to see a focus on next-generation researchers.

����Vlog

“These investments show a clear understanding that Canada must strengthen its research talent pipeline. However, we eagerly await details on how the $133 million will be delivered to ensure it effectively supports graduate students and postdoctoral scholars.”

patrick.jack@timeshighereducation.com