Canadian universities are pleased with the budget aimed at preventing the "brain drain" from the country.

Canadian universities have positively received President Trudeau's recent federal budget, announced on April 16. They applaud the increase in funding for academic research and graduate scholarships, as well as the enhanced support for student housing and mental healthcare.

Canadian universities have lauded President Trudeau's recent federal budget, which was announced on April 16. They applaud the increase in funding for academic research and graduate scholarships, as well as the enhanced support for student housing and mental healthcare. The budget allocates grants totaling $1.8 billion to Canada's three research funding agencies over five years, along with a $1.1 billion investment in interest-free student loans for the 2024/25 academic year.

Gabriel Miller, president of Universities Canada, stated, "[The] budget includes badly needed support for students and leading-edge research. Research and development are crucial for Canadian productivity and job growth, and universities are proud to play a leading role in these areas."

Last year, leading higher education and research organizations cautioned the government that Canada risked lagging behind other nations unless immediate and significant action was taken to fund its science and research output. Canada's spending on research and development in 2022 was 1.55% of GDP, well below the OECD average of 2.71%.

The government's response to last year's Bouchard Report, which called for a major reinvestment in Canada's research and innovation ecosystem, has been praised by researchers. Notable commitments in the budget include $2 billion earmarked for research infrastructure and AI computing capacity to drive technological innovation and address societal challenges.

Chad Gaffield, CEO of the U15 group of Canadian research universities, commended the government's investment in Canadian research, emphasizing its belief in science and the potential of Canada's next generation to contribute to a successful future.

The budget also allocates $825 million over five years to federal scholarships and fellowships, which U15 universities have deemed "long overdue." This targeted boost to federal scholarships aims to ensure that the next generation has access to internationally competitive financial support, thus mitigating concerns about a "brain drain" of Canada's most promising students.

Additionally, the budget, dubbed the "Gen-Z budget" to attract the youth vote, includes $500 million over five years to improve student mental health care. It also addresses Canada's housing crisis, with changes to the financial assistance program expected to provide more aid for rent to approximately 79,000 students annually. While this means more money in students' pockets, some of it will be distributed in loans, potentially leading to higher levels of debt.

Usher raised concerns about the long-term implications of other budget reforms, noting that much of the funding is contingent on the current Liberal government retaining power in the next general election, anticipated in October 2025.

On one hand, students will benefit from increased financial assistance, resulting in more money in their pockets. However, on the flip side, some of this assistance will likely translate into higher levels of debt for students.

He remarked, "Unfortunately, while the headline figure of $1.8 billion new money for the granting councils sounds impressive, nearly all of it is backloaded well beyond the next election, which means nearly all of it is speculative."

Regarding Canada's international students, the budget maintains the study permit cap and commits the government to implementing the new recognized institutions framework in 2025 instead of the previously stated 2026 timeline.

While the 2019 budget had allocated $148 million for a five-year strategy aimed at increasing outbound student mobility, scheduled to conclude this year, the new budget focuses on retaining Canadian talent and does not provide any updates on this initiative.

Source: The Pie News‍