QSA's Week in Higher Ed (#50, 2025)
Federal investment in quantum sector; bilateral language agreements signed; AI collaboration launched with Coveo; StatsCan releases student pathway data; U.S. launches NAEP 2027 and restricts student entry; Ontario colleges face reduced foreign enrolment.
Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning colleges, universities, campuses, research initiatives and funding, and the tri-council (CIHR, NSERC, SSHRC) agencies. Every Monday, we break down the most important updates in this space in under five minutes.
Want to see GR activities in areas of the economy related to the Higher Ed channel? Don’t miss this week’s updates in Social Issues and BioPharma.
Dates: 2025-12-14 to 2025-12-20
📋 In This Week's Newsletter
• 🇨🇦 Canadian Federal Government News
• 🗺️ Canadian Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week
Canadian Federal Government News
Federal Government Launches Quantum Champions Program with $92 Million Investment
On December 15, Minister Evan Solomon announced Phase 1 of the Canadian Quantum Champions Program (CQCP), marking a federal investment of up to $92 million with the aim of strengthening Canada’s quantum science ecosystem. Four Canadian-headquartered quantum technology firms—Anyon Systems, Nord Quantique, Photonic, and Xanadu Quantum Technologies—will each receive up to $23 million to accelerate the development of fault-tolerant quantum computers with industrial applications. The National Research Council of Canada will support the initiative through the Benchmarking Quantum Platform, which will undertake expert assessments. This first phase is part of a broader $334.3 million quantum investment outlined in Budget 2025, which positions the sector as a strategic focus for defence, healthcare, computing, and advanced materials. CQCP is closely aligned with Canada's forthcoming Defence Industrial Strategy.
Sources: www.canada.ca

Canada and Coveo Sign Memorandum to Advance Public Sector AI Adoption
On December 17, Shared Services Canada and Innovation, Science and Economic Development Canada announced a Memorandum of Understanding with Coveo Solutions Inc., a Québec-based AI leader. The agreement will see federal agencies evaluate and potentially deploy Canadian-developed generative and agentic AI technologies—such as advanced search and recommendation systems—across government operations. The initiative prioritizes digital sovereignty and the modernization of internal operations, targeting higher efficiency and improved citizen services. The partnership is part of broader federal efforts to build AI talent and infrastructure, reduce administrative burdens, and strengthen the public service with homegrown technology.
Sources: www.canada.ca, www.canada.ca
New Federal Investments Fuel AI Growth for Southern Ontario Businesses
Minister Evan Solomon, alongside MP Chi Nguyen, visited the Ontario Brain Institute on December 17 to announce more than $19 million in federal funding to twenty AI and technology companies in Southern Ontario. Notable recipients include Applied Brain Research, Fairly AI, Lumeto, and Ontario Brain Institute itself, which receives $2 million to expand its Centre for Analytics program. This funding, part of the Regional Artificial Intelligence Initiative, will enable adoption of secure, bias-free AI tools, focusing on solutions for brain health and cross-industry applications. The program is intended to strengthen Ontario’s role as an AI innovation hub and improve competitiveness.
Sources: www.canada.ca
Federal Support for Skilled Trades: Over $3 Million for Ontario Masonry Training Centre
On December 16 in Mississauga, Leslie Church, Parliamentary Secretary to the Secretaries of State for Labour, announced more than $3 million in funding for the Ontario Masonry Training Centre. The grant, through the Union Training and Innovation Program’s Sustainable Jobs stream, targets apprenticeship training in the Red Seal bricklayer trade and will develop updated guides and launch a green skills program for bricklayers. The funding also aligns with Budget 2025’s proposal to expand the Union Training and Innovation Program by $75 million over three years, aiming to address skilled trades workforce needs in major infrastructure and housing projects.
Sources: www.canada.ca, www.canada.ca
Bilateral Agreements on Minority-Language and Second Language Education in Alberta and British Columbia
Minister Marc Miller announced bilateral agreements with Alberta and British Columbia on December 15 to support French as a minority language and as a second language in both provinces, effective from 2024–2025 to 2027–2028. Alberta will receive nearly $100 million and B.C. over $113 million from the federal government, matched or exceeded by provincial investments. The funding extends from preschool to post-secondary institutions and is rooted in long-standing protocols for minority and second-language education aimed at promoting bilingualism and maintaining French language sustainability across Canada.
Sources: www.canada.ca, www.canada.ca
Federal Investment Expands Research Facilities for Manitoba's Heavy Equipment Sector
On December 16, Ministers Eleanor Olszewski and Jamie Moses announced a $3.3 million federal investment in partnership with Manitoba to establish the Innovation Garage at RRC Polytech and Vehicle Technology Centre. The project supports industrial-scale applied R&D in heavy equipment and vehicle manufacturing, with additional microgrid and hydrogen lab facilities for energy innovation. The expanded infrastructure is expected to drive new technology adoption, strengthen workforce skills, and enhance industry-academic collaboration in Manitoba.
Sources: www.canada.ca
Government Invests $650,000 for Renewal at Science North, Sudbury
On December 16, FedNor announced $650,000 to support the Woven by Water project at Science North. The investment will modernize over 20 percent of the science centre’s third floor, with new Indigenous-focused exhibits and an accessible multi-level play structure. The initiative connects learning to Ontario’s grades 1–12 curriculum and is intended to attract tourism, extend visitor stays, and advance Canada’s Truth and Reconciliation commitments in educational programming.
Sources: www.canada.ca
Public Service Commission of Canada Releases Annual Report, Highlights Technology in Staffing
The Public Service Commission of Canada released its 2024–2025 Annual Report on December 16. The report focuses on maintaining merit-based, non-partisan recruitment and adapting staffing practices to emerging technological challenges, including leveraging artificial intelligence for recruitment and assessment. The PSC notes the importance of student recruitment and workforce diversity in building capacity for specialized and high-demand roles.
Sources: www.canada.ca
Statistics Canada Releases Postsecondary Student Pathways Data for 2011–2023
On December 17, Statistics Canada published new longitudinal data on college and university student pathways from entry cohorts spanning 2011 to 2023. Findings include persistence and graduation rates by educational qualification, field of study, age group, gender, and student status, segmented at national, provincial, and territorial levels. The release provides a basis for tracking sectoral trends and outcomes in higher education.
Sources: www.statcan.gc.ca
Statistics Canada Launches Data Literacy Tool to Fight Misinformation
On December 15, Statistics Canada introduced a suite of resources, 'Assessing Data in a Time of Misinformation,' including a step-by-step guide and a training video for policymakers and data users. The tools outline quality and credibility checks for statistics and are included in the agency’s Data literacy training catalogue.
Sources: www.statcan.gc.ca
Canadian Provincial Government News
Ontario Sets 2026 International Student Permit Cap, Reduces Allocation by 42 Percent
Ontario announced that its allocation of Provincial Attestation Letters for 2026 will be capped at 70,074 permits, reflecting a 42% reduction from 2025 levels. Graduate students remain included under the cap but exempt from PAL requirement.
Sources: news.ontario.ca
Quebec Decree Establishes Two-Year International Student Application Limits
Quebec published new maximums for international student permit applications, effective December 17, 2025. Public institutions maintain 2024 levels, while vocational private training institutions face a 35% reduction, with regional incentives for French-language studies.
Sources: www.quebec.ca, www.quebec.ca
British Columbia Announces $33 Million Investment in Life Sciences Hub at UBC
The B.C. government provided $33 million to the Canada Immuno-Engineering and Biomanufacturing Hub at the University of British Columbia, supporting R&D, hands-on training, and applied therapeutics manufacturing.
Sources: news.gov.bc.ca
Increase in Quebec Immigration Service Fees for 2026
Starting January 1, 2026, service fees for Quebec’s Ministry of Immigration, Francisation and Integration will increase by 2.05%. Financial capacity requirements for foreign students were significantly amended and take effect the same day.
Sources: www.quebec.ca, www.quebec.ca
Ontario Launches Proposal for Defence, Security and Resilience Bank Headquarters in Toronto
The Ontario government has formally bid for Toronto to host the new Defence, Security and Resilience Bank, focusing on financing projects for NATO member and allied nations. The institution is projected to create 3,500 skilled jobs.
Sources: news.ontario.ca
Government Consultations
Health Canada Opens Consultation on Modernizing Clinical Trials Framework
Health Canada commenced a consultation on December 20, seeking input on proposed regulations for clinical trials of pharmaceuticals, biologics, and radiopharmaceuticals. The consultation runs until March 20, 2026.
Sources: www.canada.ca
What We're Reading This Week
- International students allocated to Ontario colleges, universities to drop again: Ontario institutions anticipate continued reductions in international enrolment.
- Blame Doug Ford, not international students, for the catastrophe facing Ontario colleges and universities: Editorial points to policy drivers for the sector's instability.
- Fanshawe College president tells staff to consider 'exit incentive' as enrolment remains low: Lower enrolment prompts administrative measures at Fanshawe College.
- Canada’s youth stuck competing for early career experience in a crowded labour market: Report on early career challenges and opportunities for Canadian youth.
- Immigration cuts leave an Ontario college, and its city, feeling the strain: Analysis of fiscal pressures stemming from reduced international student intake.
- Steadman Philippon Research Institute Secures Funding to Sustain IOC Research Centre Training and Career Development Program: Funding announced for research centre training and career programs.
- Trump suspends green card lottery program that let Brown University, MIT shootings suspect into US: U.S. decision on green card lottery impacts international mobility.
- They came to Canada to be doctors. Then Ontario dashed their dreams. How a judge’s rulings are giving them new hope: Coverage on licensure developments for medical graduates.
- Steadman Philippon Research Institute Secures Funding to Sustain IOC Research Centre Training and Career Development Program: Details on continued research centre funding.
- Trump suspends green card lottery program that let Brown University, MIT shootings suspect into US: Further implications for U.S. academic mobility events.