The provincial government will spend $1.2 billion less this year on postsecondary institutions than the previous fiscal year. 

The 2025 Ontario budget was released last Thursday, outlining government spending for the upcoming fiscal year. 

Spending on postsecondary institutions is expected to decrease to $13 billion from the current amount of $14.2 billion, with continued drops in funding being projected going forward into 2027. This is a stark contrast against the 2024 budget, which projected increased postsecondary education spending across the next three years ranging from $11.7 to $13 billion.

The province also promises to fund 20,500 additional seats in Science, Technology, Engineering and Math (STEM) postsecondary programs with $750 million over five years.

More than $5-billion will be invested into the postsecondary education sector over the next decade, including more than $2-billion in capital grants to help universities, colleges and Indigenous institutes modernize facilities by upgrading technology, supporting critical repairs and improving energy efficiency.

Other initiatives mentioned include $10 million over three years in scholarships at educational institutions for First Nations students pursuing careers in the resource development sector and $15 million over three years via the Life Sciences Innovation Fund for bio-industry startups and small businesses.

Aside from postsecondary educational funding, the budget has also reinforced its commitment to expanding housing amid a tight market. The province announced that municipalities may be eligible to reduce the municipal property tax on qualifying housing by up to 35 per cent starting in 2026.