Funding Shifts and the Impact on Canadian Higher Education

While Canada maintains one of the highest postsecondary attainment rates among countries in the Organization for Economic Cooperation and Development (OECD), its higher education system is increasingly shaped by changes in institutional funding. This chapter examines the implications of a decades-long decline in government appropriations, rising tuition, and cost-cutting. As institutions shift priorities to offset budget shortfalls, the effects have been widespread. Students face higher costs and greater debt, sessional faculty and staff encounter diminished job security and compensation, and institutions become more reliant on international student tuition. The chapter draws on national statistics and case studies to highlight the consequences of these trends, particularly after global events like the COVID-19 pandemic. It concludes by considering the long-term risks posed by the current funding model and emphasizing the need for coordinated public investment, more equitable labor practices, and sustainable tuition policies to preserve Canada's higher education system.