Canada has confirmed a reduction in its 2026 international study-permit quota, tightening the cap first introduced in 2024. At the same time, Immigration Minister Lena Metlege Diab extended exemptions for master’s, doctoral, and research-intensive programs, allowing institutions to keep recruiting high-skilled graduate students.
The dual move seeks to balance Canada’s heavy reliance on tuition revenue with mounting pressure on housing, health care, and settlement supports in major cities. Undergraduate and college programs—particularly in private career colleges—will feel the squeeze, as schools must compete for a smaller slice of the overall permit pool.
![Ottawa cuts 2026 study-permit quota but preserves graduate-level exemptions]()
Universities have welcomed the exemption, arguing that graduate students drive research output and feed Canada’s innovation hubs. However, pathway colleges that depend on volume may face layoffs or program closures. Provincial governments now have three months to submit revised allocation plans to IRCC, factoring in labour-market demand and regional capacity.
For corporate mobility teams, the most immediate impact will be on spousal open work permits and co-op placements tied to international students. Fewer undergraduate permits translate into fewer accompanying dependants entering the labour market. Employers that rely on part-time student workers in hospitality and retail should plan for tighter labour supply in 2026.
Prospective international students should act quickly: applications filed before the new quota takes effect will be assessed under current rules. Graduate applicants, meanwhile, retain a relatively clear pathway—though competition for scholarships is expected to intensify.
The dual move seeks to balance Canada’s heavy reliance on tuition revenue with mounting pressure on housing, health care, and settlement supports in major cities. Undergraduate and college programs—particularly in private career colleges—will feel the squeeze, as schools must compete for a smaller slice of the overall permit pool.
Universities have welcomed the exemption, arguing that graduate students drive research output and feed Canada’s innovation hubs. However, pathway colleges that depend on volume may face layoffs or program closures. Provincial governments now have three months to submit revised allocation plans to IRCC, factoring in labour-market demand and regional capacity.
For corporate mobility teams, the most immediate impact will be on spousal open work permits and co-op placements tied to international students. Fewer undergraduate permits translate into fewer accompanying dependants entering the labour market. Employers that rely on part-time student workers in hospitality and retail should plan for tighter labour supply in 2026.
Prospective international students should act quickly: applications filed before the new quota takes effect will be assessed under current rules. Graduate applicants, meanwhile, retain a relatively clear pathway—though competition for scholarships is expected to intensify.
