Calgary institutions brace for impact as federal budget slashes international student permits

November 6, 2025

RED FM News Desk

Immigration took a major hit in Tuesday’s federal budget, leaving Calgary’s post-secondary institutions, settlement agencies and immigration lawyers increasingly concerned about the future.

The federal government plans to sharply reduce the number of temporary residents entering Canada over the next several years — including significant cuts to international student admissions. Finance Minister François-Philippe Champagne said the move is aimed at bringing immigration to “more sustainable levels.”

Under the new budget, the number of international student study permits will be slashed to 155,000 in 2026, down from the previous target of 305,900. The cap is set to fall even further in 2027 and 2028, with only 150,000 permits expected to be issued each year.

The University of Calgary says it is already feeling the financial strain. The institution estimates a $34.7-million loss this year linked to declining international student enrolment, following a $15.3-million hit last year.

“We welcome the announcement that graduate students are not included in the government’s reduction, which will lessen the overall impact,” a university spokesperson said, noting that undergraduate programs will bear the brunt of the change.

Local organizations warn that the long-term consequences could be significant, affecting campus operations, community services and the broader Calgary economy as the city prepares for a steep drop in international student arrivals.