Canada: Ontario places moratorium on any new international activities for colleges

There was a cabinet shuffle in the Canadian province of Ontario on 19 August 2024 – one effect of which was to see the then-Minister of Colleges and Universities Jill Dunlop moved to a new post as Minister of Education. Before departing her post-secondary education portfolio, however, Minister Dunlop issued an unexpected directive to the province’s 24 public-supported post-secondary colleges.

In a memo which was also sent on 19 August, the minister wrote, “Effective immediately, I am placing a moratorium on all new college international activities.” She added that while the moratorium remains in effect, “Colleges must not enter into any new contracts or arrangements related to the delivery of postsecondary education and training outside of Canada, whether directly or through an existing subsidiary corporation. this includes the establishment of branch campuses, partnerships/curriculum licensing agreements, curriculum development arrangements, corporate training contracts, and the incorporation of new subsidiaries.”

In effect, the moratorium places a ban on any new transnational education (TNE) initiatives for Ontario colleges. Minister Dunlop noted as well that this new restriction does not pertain to student recruitment, nor to research activities across international borders. “Student recruitment and research partnerships are not included [in the ban], and existing international activities can continue but shall not expand.”

The moratorium on the TNE partnerships and projects will now remain in place pending a formal review of existing ministry guidance in this area. The review will specifically focus on the Entrepreneurial Activities Minister’s Binding Policy Directive. That guidance has been in place for more than 20 years, and it essentially sets out the scope for, and basis under which, an Ontario college may engage in revenue-generating activities outside of its core programmes and services, including international partnerships and contracts and the range of TNE activities detailed in Minister Dunlop’s memo.

No other detail has yet been provided on the review process, except that “Given the ministry’s planned engagement with the [Ontario college] sector on other priorities, engagement on the [Binding Policy Directive review] will likely take place in early 2025; further information will be shared in the coming months.”

In other words, the ban on new or expanded TNE activity will remain in place for the next six months if not more.

It remains unclear why Minister Dunlop put the moratorium in place, and the move is especially mystifying given the current challenges facing all Canadian institutions and schools this year in the wake of a number of new policy settings. Those include a cap on foreign enrolment, changes in post-study work rights, new rules around accompanying dependants of international students, and rising rejection rates for study permit applicants. Colleges, in Ontario and elsewhere, have been especially hard hit, as evidenced by a growing number of reports of programme cuts and cancellations as well as staff reductions at colleges throughout the province.

Speaking to the Toronto Star this week, Colleges Ontario CEO Marketa Evans said, “These entrepreneurial initiatives help offset costs to ensure that college programs stay open for Ontarians. We at Colleges Ontario are increasingly concerned about the strength of the sector and its ability to continue to deliver for Ontarians.”

The only hint as to the government's intent appears in this passage in Minister Dunlop's memo: "The ministry is taking action to stabilise Ontario's colleges and universities by introducing a suite of measures to ensure the continued viability of the postsecondary education system. While this work is ongoing, it is essential that colleges focus on their core mandate of delivering postsecondary education and training to meet the needs of Ontarians and support the economic and social development of their local communities."

Ontario is Canada's most populous province and is home to roughly 40% of the Canadian population. Similarly, just over four in ten foreign students in Canada study in Ontario.

For additional background, please see:

• "Canada’s immigration ministry proposes new compliance regime for institutions and schools"
• "International students contributed $31 billion to Canadian economy in 2022"
• "Canadian immigration minister releases official cap figures and targets for 2024"