Some analysts express worry that Canadian post-secondary students may face reduced financial support from the Canada Student Grant (CSG) following a discreet provision in Budget 2025. Alex Usher, head of Higher Education Strategy Associates (HESA), remarked that this change could negatively impact students’ educational experiences.
The CSG is a subsidy available to students from low- and middle-income households, automatically evaluated during applications for provincial or territorial student assistance. Usher noted a lack of future funding increments for the CSG, which had seen additional allocations since 2020 to elevate payments from $3,000 to a targeted $4,200.
When questioned by CBC, Employment and Social Development Canada (ESDC) did not confirm whether the grant would revert to the previous $3,000 amount, stating that further details would be disclosed later. In the 2023-2024 academic period, approximately 586,000 full-time students received $2.6 billion through the CSG, with 1.9 million full-time equivalent enrollments across Canada that year, according to HESA.
Usher highlighted that this apparent reduction could result in heightened student debt, especially among those reliant on the grants. The trend of decreasing support began in 2019, when eligible full-time students could obtain a maximum of $3,000 annually. Subsequently, the Liberals pledged to raise this to $4,200 per year during the 2019 election.
Following the early COVID-19 lockdowns in April 2020, the government decided to elevate the grant to a maximum of $6,000 annually, a measure sustained until July 2023. However, subsequent budgets saw reductions, with payments reduced to $4,200 in the 2023 budget and maintained at this level in the 2024 budget.
Budget 2025 outlines a provision earmarking $1.2 billion for the current fiscal year, with incremental reductions anticipated until 2030. Usher expressed concerns that this signals another potential drop in the CSG, critiquing the budget’s construction as “sloppily put together.”
Various experts, interpreting the budget similarly, anticipate a decrease in the CSG. The Canadian Association of University Teachers recently recommended raising the maximum CSG payment to $7,000 in its pre-budget submission for the year.
Jack Coen, UOSU President, criticized the obscured nature of this alteration in the budget, describing it as a disingenuous move that fails to transparently communicate the sacrifices being made. Other budget measures affecting post-secondary institutions and students include a summer jobs program and funding for Canada Research Chair positions.
Sean Joe-Ezigbo, President of the Carleton University Students’ Association, highlighted the frustration among students over the possible grant cut, especially amidst rising youth unemployment rates and food insecurity. He noted that withdrawing support in one area while providing it in another does not effectively assist students striving for quality education without added financial burdens.
Despite potential concerns, Usher believes that the reduced grants may not dissuade students from pursuing higher education but could lead to increased debt burdens post-graduation. The budget is expected to be voted on in Parliament on Monday.