Immigration minister Marc Miller explained in 2024 that the cap is part of the federal government’s efforts to ease mounting pressure on critical public infrastructure, notably housing, healthcare and other essential services, driven by a rapid surge in Canada’s temporary resident population. As a result, universities across the country are preparing for further adjustments into 2026 as the federal cap continues to reshape institutional enrollment planning.

In 2026, the IRCC will issue 408,000 study permits for newly arriving international students and for those who need extensions. This is 7% lower than the 2025 target and 16% lower than 2024.

Under the cap, provinces are given yearly limits based on population that restrict how many study-permit applications each school, college or university may support.

Miller has a pragmatic approach when explaining that the government aims to decrease the number of temporary residents (including international students) to 5% of the population over the next three years, in accordance with the 2025–2027 Immigration Levels Plan. He said, “we have heard from Canadians, and a wide range of civil society leaders and economists” and are taking action.

Nonetheless, he did not feed into anti-migration sentiments. “To be clear from the start: temporary residents enrich Canada’s economic, social and cultural fabric. Canada’s future economic vibrancy depends on those we bring in today whether we like it or not,” he said.

Under the current prime minister Mark Carney, the federal government has continued these caps on international study permits in response to continued public concern. Critics argue that casting international students as a source of housing and infrastructure pressure, although they contribute economically, has made restrictive policies more politically palatable for the public.

Simultaneously, the reform aims to force universities to recalibrate their heavy reliance on high international tuition. The cap also makes it easier for local students to secure spots, which further reinforces public support for the policy.

In the meantime, federal attention is increasingly shifting toward targeted pathways for skilled immigrants already authorised to work in Canada, particularly in technology, healthcare and other high-demand sectors. This is a pivot that may continue to sideline international students, who often fall out of these expedited streams even as labour shortages persist.

 

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As the United States narrows opportunities for international students and risks accelerating brain drain, some experts say this could signal a brain gain for Canada, especially for academics, researchers and scientists.

Regardless, Canada’s new immigration restrictions could complicate that opportunity since retention of skilled workers is as complicated as recruiting them.