The University of Toronto is redoubling supports for students through financial assistance and housing, making investments in research and moving forward with important construction projects on all three campuses - while also taking measures to navigate the challenges facing Canada's post-secondary sector.
In the 2025-26 balanced budget, approved by Governing Council on April 3, the university outlined plans for $3.62 billion in spending, an increase of 2.8 per cent over the previous fiscal year.
That includes earmarking $405 million for student aid - one of several student-focused measures highlighted in this year's budget. Others include construction of 1,250 residence spaces across the three campuses and plans to eventually add a total of 5,000 spaces on the St. George campus over the next decade that will enhance the academic and social experience for students.
Elsewhere, more than $21 million will be allocated to academic priorities such as an increase in base funding for PhD students, supports for academic divisions vying for Canadian government research funding and attracting scholars from underrepresented groups.
"This budget supports our deep commitment to undergraduate and graduate student success at U of T," said Trevor Young, U of T's vice-president and provost.
"We are dedicated to providing a world-class education and generating game-changing research, while still carefully managing our resources to address the evolving needs of our campuses."
As Canada's top-ranked university - and one of the world's leading public universities - U of T continues to enjoy strong interest in its programs, particularly from international students. With the help of targeted provincial funding, it plans to add 500 new domestic undergraduate spaces over the next five years, including in nursing, medicine and at the Scarborough Academy of Medicine and Integrated Health (SAMIH).
A challenging fiscal environment
However, the university is also forecasting slowing overall enrolment growth in the coming years due to rising geopolitical tensions and recruitment challenges arising from the federal government's evolving immigration policies related to international study permits.
Revenue growth is expected to slow to around three per cent in the years ahead, owing in part to constraints on tuition and provincial operating grants, which are expected to remain frozen at about 20 per cent of U of T's operating budget - the lowest proportion of government funding for any major publicly funded university in Canada.
"While the university is concerned by the fiscal climate faced by the post-secondary sector, this balanced budget reflects our ability to tackle these challenges from a position of strength and built on a foundation of years of prudent financial stewardship," said Jeff Lennon, U of T's assistant vice-president, planning and budget.
Lennon said U of T continues to advance non-traditional means of revenue generation, such as partnering with companies to operate in collaborative spaces and boosting the university's involvement in lifelong learning.
Provincial restrictions on domestic tuition remain a concern. In 2019, tuition fees for Ontario students were cut by 10 per cent and have remained locked in place ever since, with the government extending the freeze until at least 2026-27. This measure runs contrary to the recommendations of a Blue Ribbon Panel of experts - convened by the provincial government in 2023 - that recommended lifting the freeze on tuition, increasing operating grant funding by 10 per cent and considering further enrolment funding to cater to demand.
While U of T is poised to receive additional operating grant funding over the next two years through the province's Postsecondary Education Financial Sustainability Fund, it's not expected to cover inflationary costs, Lennon said.
Tuition fees for domestic undergraduate students from outside the province will rise by five per cent in the coming year, but the impact will be limited as this only applies to a small segment of domestic enrolment. Tuition fees for international students will increase by an average of 2.9 per cent across undergraduate and graduate programs - although U of T will make $90 million available for international student scholarships including the flagship, full-ride Lester B. Pearson International Scholarship program.
Despite the obstacles, U of T is forging ahead with investments in priority areas, including an Operational Excellence Initiative to help divisions find ways to streamline delivery of administrative services.
Student supports and housing
Student aid remains an area of critical focus, with $405 million earmarked for financial supports - an increase of $25 million from the 2024-25 budget, and part of U of T's pledge that no domestic student offered admission should be unable to enter or complete their program due to a lack of financial means.
U of T is also investing in student housing with 1,250 spaces under construction: 500 spaces at the Oak House residence on Spadina Avenue that will open for September 2025, 350 spaces at the Lawson Centre for Sustainability at Trinity College and 400 spaces at the new Phase IX residence at U of T Mississauga.
And following the success of U of T's 2024 acquisition of a 20 per cent interest in the privately owned CampusOne residence - which effectively added 890 residence beds to the university's stock - U of T will expand student housing by another 5,000 spaces on the St. George campus over the next decade through joint ventures with private firms. These projects, which include a new residence on Harbord Street currently under development, are part of the Four Corners real-estate strategy, which aims to leverage U of T's real estate assets to support its academic mission and deliver services while generating revenue for the university.
In all, U of T is planning $4.6 billion in capital projects over the next five years that will be funded through a mix of cash, debt, donations and support received from government and other partners. These include: the James and Louise Temerty Building on the site of the west wing of the current Medical Sciences Building; a new commerce building; the redevelopment of the 215 Huron site on the St. George campus; a literature, arts and media and performance building at U of T Scarborough; and Indigenous placemaking and a campus heart renewal project at U of T Mississauga.
These are in addition to ongoing academic infrastructure projects such as the Academic Wood Tower on the St. George campus and the SAMIH building and Indigenous House at U of T Scarborough.
"Our efforts to construct, expand and renew physical spaces on campus are rooted in a desire to create ideal environments for our students and faculty to thrive," said Scott Mabury, U of T's vice-president, operations and real estate partnerships.
"These investments directly support U of T's commitment to delivering a world-class education and ensuring the financial sustainability of our institution for the years ahead."
