Canada’s success in AI will depend on people as much as technology. As the primary drivers of AI talent development, research excellence and innovation, Canada’s universities play a critical role in translating AI breakthroughs into economic growth, real-world impact and ensuring AI is developed and applied responsibly and ethically. This includes the contributions of researchers and students across the humanities and social sciences, whose work helps shape the ethical, social, cultural and policy dimensions of AI.

Realizing the strategy’s ambitions will require sustained implementation and ongoing collaboration between governments, universities, industry and community partners. Continued investments in talent, research capacity and enabling infrastructure will help ensure Canada can build on its AI strengths and deliver long-term economic and social benefits. Achieving the strategy’s objectives will also require strong pathways to translate Canadian research and innovation into economic and societal benefits.

The strategy takes important steps to strengthen Canada’s AI talent pipeline by expanding AI literacy, improving access to trusted AI tools for post-secondary students, creating pathways for up to 90,000 students and young Canadians to gain practical experience, supporting workforce upskilling and investing in talent and research excellence.

We are also encouraged by the strategy’s recognition of the importance of French-language AI and ensuring AI technologies perform effectively in both official languages.

Canada’s universities have helped build one of the world’s leading AI ecosystems through their research talent. The increase in the number of CIFAR AI Chairs is a welcome investment that will help strengthen Canada’s AI research capacity and support the next generation of talent. Continued investment in research excellence and talent development will be critical to sustaining Canada’s leadership and competitiveness in the years ahead.

Universities are uniquely positioned to support the strategy’s goals by advancing AI literacy, promoting responsible innovation and equipping Canadians to adapt to a rapidly changing world. As trusted public institutions, universities are also the ideal partners to host secure, sovereign compute and data infrastructure that strengthens Canada’s data sovereignty.

Canada’s universities are ready to partner with governments, industry and communities to help realize the strategy’s objectives. Together, we can build an AI future that drives innovation, creates opportunity, strengthens Canada’s competitiveness and delivers benefits for all Canadians.

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Universities Canada’s pre-budget submission positions the country’s universities as essential partners in advancing these national priorities. As major economic engines, universities contribute $48.6 billion annually to the economy, support more than 410,000 jobs nationwide and perform $19 billion in research and development each year. They are also where more than 1.5 million students each year gain the skills and experience needed to build careers, earn strong incomes and boost Canada’s productivity. From urban hubs to regional centers, universities serve as anchors of local economies and primary drivers of workforce readiness.

Canada’s universities are central to building the talent, skills and innovation our economy depends on. Unlocking that full potential requires essential contributions by the federal government. “Canada’s economic future depends on our ability to develop talent, drive innovation and compete on the global stage,” said Gabriel Miller, president and CEO of Universities Canada.

“Universities are central to that effort, but their capacity is being stretched to a breaking point. Budget 2026 is an opportunity for the federal government to use its policy levers to strengthen that foundation and ensure Canada can meet the challenges ahead.”

The submission outlines four targeted areas for coordinated federal action:

• Compete for the world’s best talent: Expand Canada’s International Education Strategy into a comprehensive International Higher Education Talent, Research and Innovation Strategy to respond to intensifying global competition, aligning federal policies to attract talent, expand research partnerships and support export diversification in priority markets.
• Equip Canadians with the skills our economy needs: Make coordinated strategic investments in Canada’s domestic skills pipeline by ensuring universities are integral partners in the design and delivery of federal workforce initiatives — including work-integrated learning, the Canada Defence Skills Agenda and Workforce Alliances — to strengthen regional talent pipelines and prioritize career pathways for veterans and mid-career workers into strategically important fields.
• Harness university research to advance national priorities: Leverage the full capacity of Canada’s university research ecosystem to strengthen sovereign capability by implementing scalable mechanisms — including standardized entry points and funding that spans the full innovation continuum — to align university research with federal priorities such as defence, artificial intelligence and dual-use research.
• Strengthen institutional capacity through targeted, fiscally responsible federal tax relief: Using existing tax mechanisms to ensure rapid and efficient delivery, increase the GST/HST rebate for universities to 100 percent, aligning the treatment of universities with municipalities and other public interest organizations. This would allow institutions to reinvest an estimated $240 million annually directly into teaching, research and student support.

By pursuing this integrated strategy and ensuring greater alignment across federal levers such as skills, research, immigration and tax policy, the government can strengthen Canada’s workforce, increase productivity and reinforce national sovereignty to ensure the country can fully leverage its university system for long-term economic growth.

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Yesterday’s investment by the Government of Canada in Talent Innovation Canada (TICAN) recognizes that universities are essential to developing the highly skilled talent that drives the country’s innovation economy.

Canadian universities perform over $19 billion in research and development annually, which accounts for more than 33 percent of Canada’s total R&D, the highest share among G7 nations. While Canada excels at discovery, Canadian small and mid-sized businesses (SMBs) often struggle to compete with multinational firms that have the scale and resources to absorb risk and advance the commercialization of new patents.

By creating pathways for graduate students to apply their expertise in real-world settings, TICAN equips employers with the talent needed to scale rapidly. This bridges the gap between research and industry, preventing intellectual property leakage and ensuring the economic benefits of Canadian innovation remain at home.

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While Canada is looking to strengthen productivity, grow talent and compete in strategic sectors, the report finds that the system underpinning our universities — and the opportunities they create for Canadians — is under mounting strain as public funding fails to keep pace with rising costs, infrastructure gaps deepen and demand for university education continues to grow.

The stakes extend well beyond campuses. As the federal government advances priorities on workforce development, sovereign technology and defence capacity, universities remain essential to train talent, support research and work with industry and governments across the country.

The report identifies practical policy levers governments can use now to strengthen long-term sustainability, including two key measures: targeted tax relief through a full GST/HST rebate for universities and coordination and predictability across talent, skills and immigration policy.

If left unaddressed, the report warns, those pressures will constrain student access, weaken research capacity and undermine Canada’s long-term economic resilience. Moreover, without coordinated action to address these funding and infrastructure gaps, Canada faces a severe talent crisis, including a forecasted shortage of more than 100,000 doctors and close to 500,000 nurses by 2033. By 2040, Canada could also see up to 500,000 additional university students, a substantial increase that will test the sector’s capacity to meet growing demand in key sectors such as healthcare, education and technology.

Since October, Universities Canada and CAUBO have convened leaders from across the country, including presidents, provosts and vice-presidents, to assess the challenges and identify practical solutions to strengthen the long-term financial sustainability and mission resilience of Canada’s universities.

“If Canada is going to compete and win in a rapidly changing world, we need to invest in our people and that means investing in our universities,” said Gabriel Miller, President and CEO of Universities Canada. “Universities are central to Canada’s talent pipeline, research capacity and long-term economic strength. Maintaining that contribution will require renewed public support so universities can continue building the talent, research and innovation Canada needs in sectors such as AI, health, energy and defence.”

“These pressures are no longer abstract. They are already affecting capacity across the system — from workforce development to research and infrastructure,” said Nathalie Laporte, Executive Director, CAUBO. “What is needed now is a more coordinated approach that brings together governments and institutions to address funding pressures, renew infrastructure, improve long-term planning and create the conditions for innovation and adaptation. Without a renewed approach, we risk undermining one of Canada’s most important national assets.”

In addition to seeking government partnership, the sector is changing from within. This report is part of a new national effort to support universities as they modernize legacy systems and institutional practices, adapt academic and administrative models, and strengthen long-term mission sustainability.

Universities Canada and CAUBO will continue to work with institutions and governments to advance practical solutions that strengthen long-term stability and ensure universities can meet the needs of a growing and changing country.

Read the full report.

Quotes:

“Canada’s universities play a critical role in building talent, advancing research and supporting long-term economic strength,” said Christina Zacharuk, CEO of the Research Universities’ Council of British Columbia. “Looking ahead, a more coordinated approach between governments and universities will be essential to strengthen capacity and ensure Canada can continue building the talent, research and innovation needed to compete in a rapidly changing world — because investments in universities are investments in Canada’s future.”

Christina Zacharuk
CEO, Research Universites’ Council of BC (RUCBC)

“The Ontario government’s recent $6.4 billion investment in post-secondary marks a welcome and critical step toward strengthening the long-term sustainability of our universities, recognizing universities as essential drivers of talent, research and economic growth. This report highlights some of the financial pressures institutions have managed over time, particularly as enrolment grows and infrastructure ages. By continuing to invest in its universities, Ontario is investing in the skilled workforce, innovation capacity and global competitiveness that will power the province’s future.”

Steve Orsini
President and CEO, Council of Ontario Universities (COU)

“Atlantic Universities have a long history of educating the region’s workforce. Declining international student enrolments, deferred maintenance, rising costs, and stagnant funding have caused significant financial strain for all 16 Atlantic universities. Atlantic universities continue to seek ways to work collaboratively, manage costs and live within their means while offering students opportunities to learn, thrive and take their place in the region’s economy. We look to our labour market partners, the federal and provincial governments, to work collaboratively with us to ensure that we can continue to meet Atlantic Canada’s growing labour demand.”

Dr. Andrew Hakin
Chair, Association of Atlantic Universities (AAU)

“If Canada wants to strengthen productivity and innovation capacity, it needs universities that are financially sustainable. Our universities have shown that they can adapt and innovate, but they cannot carry the financial burden alone. Strong, predictable public policy tools are needed to protect access to higher education, research and innovation capacity, the development of talent from Canada and abroad and the vitality of communities.”

Christian Blanchette
Chair of the Board of Directors of the Bureau de coopération interuniversitaire (BCI) and Recteur of the Université du Québec à Trois-Rivières

“Canadians deserve strong universities that educate our future leaders, drive innovation and sustain research excellence. This requires sustained investment and the courage to adapt. By making thoughtful, positive changes now, we can protect affordability, sustain excellence and ensure Canada’s universities continue to serve the public good as engines of opportunity, innovation and social mobility.”

Dr. Michael Benarroch
President and Vice-Chancellor, University of Manitoba

About the Canadian Association of University Business Officers (CAUBO) 

Founded in 1937, CAUBO is a non-profit professional organization representing the chief administrative and financial officers at over 100 universities and affiliated colleges in Canada. To learn more, visit: www.caubo.ca/

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This op-ed was published in The Hill Times on March 9, 2026.

For generations, Canada has been able to rely on a strong and stable food system. That assumption is now being tested.

Climate pressures, rising input costs, global instability and shifting environmental conditions are creating new risks for farmers and food producers. These challenges affect not only what Canadians pay at the grocery store, but also, more fundamentally, they test the resilience of one of the country’s most essential sectors. Meeting these challenges will depend on sustained federal investment in research and innovation that strengthens the agri-food sector. Canadian universities, which have long been central to that effort, are developing solutions that enhance agricultural productivity, improve sustainability and support the people and communities who produce our food.

Food security is not simply about supply. It requires adaptability. And adaptability is rooted in ingenuity, advanced through science, and translated into practical solutions through research.

Across the country, federally supported university researchers are delivering practical, science-based solutions producers can use.

At the University of Saskatchewan, agricultural researchers are developing more resilient crop varieties and digital tools to help farmers adapt to changing environmental conditions. At the University of Waterloo, researchers are using artificial intelligence to improve drought prediction, giving producers better information to manage risk. At the University of Guelph, the Food from Thought initiative — which received $76-million in federal support through the Canada First Research Excellence Fund — is advancing sustainable food production by improving soil health, strengthening crop performance, and developing more efficient agricultural systems.

Together, these initiatives show how federal research investments translate directly into on-farm productivity and long-term resilience.

Similar work is underway at universities in every region of the country, reflecting the national importance of agricultural research to Canada’s economic strength, food security and long-term competitiveness in a changing global climate. This research strengthens rural economies, stabilizes domestic food supply and reinforces this country’s position in global agri-food markets, a sector that contributes billions of dollars to the GDP and supports hundreds of thousands of jobs.

Research conducted at Canadian universities plays a crucial role in translating scientific discovery into real-world impact. Working in partnership with producers, industry and governments, universities help accelerate commercialization, strengthen Canada’s talent pipeline and ensure producers have access to the innovations they need to remain competitive in a rapidly evolving global market.

This is especially important as climate change intensifies and global supply chains face increasing disruption. Other leading agricultural economies are increasing their investments in research and innovation to secure productivity gains and climate resilience. Canada cannot afford to fall behind. Our ability to adapt will depend on continued investment in the science, research and talent that underpin agricultural resilience.

Food security is not an abstract concept. It is the result of deliberate policy choices — choices to invest in research, support innovation and ensure producers have the tools they need to succeed. Canadian universities translate federal research investments into practical solutions that strengthen Canada’s food system, rural communities and export capacity.

If Canada is serious about long-term food security, driving economic competitiveness and supporting rural communities, sustained federal investment in university agricultural research must remain a national priority.

At a time of mounting uncertainty, investing in the science that safeguards the resiliency of our food system is not optional. It’s essential to this country’s future.

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Supported financially by Transport Canada, the Flight 302 Legacy Award honours their impact by providing financial scholarships to students who academic and professional pursuits align with the causes close to the victims’ hearts — from environmental studies and humanitarian aid to aviation and education.

In 2025, 42 students from across Canada were selected from a wide range of disciplines, united by the goal: creating a kinder, greener and more equitable world. Through their studies, they carry forward the legacies of Dr. Pius Adebola Adesanmi, Darcy Michael Belanger, Stéphanie Lacroix, Michael Messent, Danielle Moore, the Pauls family and Angela Rehhorn.

Meet some of the 2025 recipients of the Flight 302 Legacy Award.

Legacy in action: 2025 recipients spotlight

Linsey Mouatchô, INRS

“I honour Danielle Moore, who learned about the scourge of plastic pollution at Haida Gwaii; Darcy Michael Belanger, wildlife protection activist; and Angela Rehhorn, on ocean lover dedicated to protecting marine life.

By studying plastic pollution — one of the most critical environmental issues of this century — I intend to carry their passion forward and produce useful, lasting scientific knowledge.”

Mejbah Uddin Chowdhury, University of Victoria

“I honour the victims of Flight 302 by carrying forward their legacy of compassion, service and global responsibility. Inspired by Jessica Hyba, Angela Rehhorn, Danielle Moore and Stéphanie Lacroix, I am committed to advancing humanitarian action, environmental conservation and international development through my research and future career.

This award empowers me to transform research into meaningful action and honour the enduring legacy of those who inspired the world through their courage, compassion and commitment to serving others.”

Joseph Bless Darkwa, University of Calgary 

“My scholarship particularly honours the legacies of Dr. Pius Adesanmi, who was committed to challenging colonial structures and uplifting African intellectual contributions, and Micah Messent, who saw Indigenous education and knowledges as essential to protecting the environment.

These values guide my desire to prioritize marginalized and disavowed voices in mainstream curriculum development, accelerating ecological and climate change education among you.”

Joy Karinge, Carleton University 

“Honouring the victims of Flight 302 means continuing the unfinished work of all those who dedicated their lives to bridging cultural divides, whether through lived diasporic realities like the Pauls Family, or through professional contributions in academic and international development like Dr. Pius Adesanmi and Stéphanie Lacroix.

This award enables me to walk the path Dr. Adesanmi illuminated, where African dignity, intellectual rigor and transformative impact converge.”

Farhan Jarif, University of Waterloo

“I honour the victims of Flight 302 by grounding my work in aviation safety and by remembering that every system I study ultimately serves real people with families, futures and trust in the engineers behind the aircraft they board.

My goal is to help ensure that lessons from Flight 302 translate into safe skies, stronger standards and engineering decisions that always put human life first.”

More than a scholarship

For recipients across disciplines and institutions, the Flight 302 Legacy Award is more than financial support — it is an affirmation of their commitments and aspirations. It provides the space and time to focus deeply on their studies, pursue fieldwork and engage meaningfully in the communities they belong and serve.

The award enables recipients to carry out relevant research in their fields of study. It also enables undergraduates to expand their leadership and volunteer initiatives. It allows future professionals to translate learning into professional tools, advocacy and service.

Just as importantly, recipients describe the award as an affirmation of purpose: a reminder that their education is tied to a broader legacy of environmental stewardship, humanitarian action and social justice.

In their own ways, each honours the legacy of the Flight 302 victims, expressed through their rigorous scholarship, community engagement and tangible impact.

Learn about more of the 2025 Flight 302 Legacy Award recipients.

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The initiative marks a significant step in implementing Minister Anand and Minister Jaishankar’s fall joint statement, Renewing Momentum Towards a Stronger Partnership, and reflects a shared commitment to strengthening long-term economic and innovation ties between Canada and India.

“Canada and India are natural partners in education, innovation and research, says Anita Anand, Canada’s Minister of Foreign Affairs. Canada welcomes the new Canada-India Talent and Innovation Strategy that will create opportunities for students and researchers, drive economic growth, and reinforce the strong people-to-people ties that connect our two countries.”

“This is a new chapter in a very important relationship, and it demands a new partnership on higher education and research, which is vital to the future of both our countries,” said Gabriel Miller, President and CEO of Universities Canada. “We are building the foundations of a long-term partnership that will create good jobs, better incomes and communities that can thrive in a highly competitive global economy.”

Universities Canada will play a leadership role in developing the new strategy, working closely with counterparts in India to consult with partners from industry, universities and government. They aim to present recommendations to government within six months, in advance of the next G20 meeting. Realizing the full potential of this strategy will require sustained collaboration between governments and institutions, supported by targeted public investment to scale research partnerships, expand student mobility and strengthen institutional capacity in both countries.

The work is being undertaken with the support of the Government of Canada, reflecting the recognition that education and research partnerships are central to long-term competitiveness and trade diversification.

“Prime Minister Carney and Minister Anand have demonstrated strong leadership in advancing this renewed Canada–India partnership,” Miller said. “This initiative reflects a clear understanding that sustained institutional collaboration strengthens both economies.”

Canada’s higher education sector is a major economic driver and a cornerstone of national innovation capacity. International education contributes $30.9 billion to Canada’s GDP annually, supports more than 361,000 jobs and generates $7.4 billion in tax revenue. Canadian universities conduct approximately $19 billion in research and development each year, representing 35 per cent of all research activity in the country.

By strengthening collaboration in priority sectors such as artificial intelligence, clean energy, health innovation and advanced manufacturing, Canada and India are building durable institutional ties that support research commercialization, industry engagement and workforce development in both countries.

The initiative aligns with Canada’s broader Indo-Pacific engagement and builds on the recent Canadian university presidents’ mission to India, the largest academic delegation Canada has ever sent to the country, which laid the groundwork for deeper institutional collaboration. It also complements the Government of Canada’s International Talent Attraction Strategy by reinforcing Canada’s reputation as a trusted partner in global research collaboration and advanced skills development.

Today’s event also highlighted new institutional partnerships between Canadian universities and Indian counterparts, as well as the advancement of Canada–India Skills Training Centres of Excellence through collaboration between Colleges and Institutes Canada and India’s Ministry of Skill Development and Entrepreneurship.

Together, these efforts signal a shift toward sustained, structured collaboration — strengthening trade, trust and talent connections between Canada and India for the long term.

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Our 97 members are crucial to this work providing education and research opportunities to over 1.4 million learners to build a highly skilled diverse and adaptable workforce across all regions and sectors, including those identified by the alliances.

This announcement builds on the government’s recent work to establish sectoral advisory councils. The first — focused on advanced manufacturing — was announced earlier this month. The five new alliances will focus on housing and construction; transportation and supply chains; energy and electricity; mining and minerals; and the care economy.

We look forward to continuing to work with all partners and government to advance the mandate of these alliances and strengthen the resilience of Canada’s economy and workforce.

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Canada’s universities are foundational to that effort; advancing cutting-edge research in areas such as artificial intelligence, aerospace, quantum technologies, advanced manufacturing and bio-health, while preparing the highly skilled workforce that underpins sovereign capability.

As the strategy moves into implementation, sustained investment, clear and efficient research security frameworks, and strong collaboration among government, industry and academia will be critical to ensuring Canada’s defence innovation ecosystem remains globally competitive and aligned with our national interests.

Universities Canada looks forward to working closely with federal partners to ensure universities are meaningfully integrated into new research coordination structures, procurement and commercialization reforms, and joint education investments. We will continue to advocate for predictable funding, streamlined security processes and enabling policies that allow institutions to fully contribute to Canada’s defence and innovation objectives.

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Polling from Universities Canada and Abacus Data shows public trust in Canadian universities is rising at a moment of growing economic uncertainty and global competition. Nearly two-thirds, 61 percent, say they trust universities to act in the public interest.

“Our research shows Canadians are looking for reassurance right now — from government, public institutions and the organizations they trust,” said David Coletto, Founder and CEO of Abacus Data. “Universities are well positioned to provide that reassurance by showing how strong public institutions can help steady uncertainty and contribute to a more optimistic future.”

That confidence reflects the vital role universities play in Canadian communities. More than three-quarters of Canadians say universities are anchors of their local economy that create jobs and help to grow businesses. In addition, nearly four in five Canadians say universities help prepare Canada’s workforce and strengthen systems such as health care and technology that underpin the country’s competitiveness.

At the same time, the research exposes an important nuance: Universities’ contributions are so fundamental to our communities and economy, they can sometimes be overlooked or taken for granted. For some Canadians, particularly those who did not attend university themselves, that can make the connection between campus activity and daily life less immediately apparent — even as they recognize universities’ broader value.

“Universities are woven into daily life in ways people don’t always notice,” said Gabriel Miller, President and CEO of Universities Canada. “They train the nurses who staff local hospitals, the teachers in neighbourhood schools and the graduates who support small businesses. They drive research that strengthens health care, agriculture and emergency response. They turn out engaged, informed citizens. That work happens behind the scenes, but its results show up in stronger communities, and a stronger Canada.”

The scale of universities’ contribution underscores why those connections matter. Canadian universities contribute $45.1 billion to the national economy and support 410,000 jobs annually. More than three-quarters of Canadians — 77 percent —support increased government investment in universities, reflecting broad agreement that these institutions play a central role in Canada’s future.

The findings arrive at a moment when the federal government is focused on strengthening Canada’s economic foundations and public institutions. In that context, universities’ role as nation-building infrastructure — educating workers, supporting research and sustaining communities — has taken on renewed relevance.

Universities Canada says it will continue working with its 97 members to more consistently connect public investment to the real-world outcomes that flow from campuses into communities across the country.

“Canadians know that universities matter,” said Miller. “Our responsibility is to make the link between public investment and real-world outcomes clearer — from stronger communities to better services and opportunity across the country.”

To support this effort, Universities Canada is launching a pilot communications campaign that will spotlight practical, data-driven stories demonstrating how university education supports communities, strengthens services and drives economic growth.

To learn more, share your story or explore how universities are making a difference across Canada, visit PossibleWithU.ca.

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