The University of Toronto's 2026-2027 budget takes steps to manage costs, boost student financial supports and make strategic, long-term investments in teaching and research - while the university looks ahead to the positive impact of Ontario's plans to strengthen the post-secondary sector.
U of T's 2026-27 balanced budget, approved by Governing Council on March 26, outlines the university's plans for $3.66 billion in spending - a modest increase of 1.1 per cent over the prior fiscal year.
Developed before the province's $6.4-billion investment in universities and colleges was announced Feb. 12, the budget includes $408 million for student support programs, nearly $21 million to fund 100 new two-year postdoctoral fellowships and an ongoing $40,000 base funding commitment for doctoral students. That's in addition to investments in student services, housing and experiential learning.
Elsewhere, $15 million will be allocated to digital strategies, including responsible AI adoption across the university.
"Investing in the continued success of our students is at the forefront of our plans for the upcoming academic year and beyond," said Trevor Young, U of T's vice-president and provost. "From expanding financial aid to enhancing digital capabilities, we are investing where it matters most while continuing to steward our resources responsibly."
Student access and affordability
The 2026-2027 budget includes a three-per-cent increase to U of T Advanced Planning for Students (UTAPS) - the university's largest needs-based financial support program - in recognition of the cost-of-living challenges facing students. That brings the value of UTAPS to about $42 million, which is further topped up by about $2.5 million in funding from endowments.
In the coming years, U of T also plans to further bolster financial aid offerings to uphold its longstanding Policy on Student Financial Support, which ensures that no Canadian or permanent resident offered admission to an undergraduate program at U of T "should be unable to enter or complete the program due to lack of financial means."
In all, the university continues to invest the equivalent of about $4,000 per student in financial assistance each year - nearly 70 per cent more per student than most other Ontario universities. This includes a projected $71 million next year that's sourced from the payout on U of T's endowment.
The budget also supports U of T's global engagement strategy, continuing to set aside six per cent of international undergraduate tuition to fund merit-based scholarships for international students, and advances efforts to broaden the geographic diversity of the university's international student body.
The support comes amid a 20-per-cent rise in international student applications for this fall. U of T, meanwhile, anticipates growing its international student body by nine per cent, or 435 students, in 2026-27 after recalibrating its planning targets to reflect recent intake levels and shifts in the global student market.
A shifting financial landscape
With the Ontario government's new investments in the sector - including more funding per student and support for an additional 70,000 student seats in in-demand programs - U of T's annual revenue is poised to grow by 3.5 per cent next year (compared to 1.1 per cent in the budget document) and average around three per cent across the remainder of the university's five-year plan.
Beginning in September, U of T and all other publicly funded universities in the province will also be permitted to increase tuition by up to two per cent per year for three years (tuition levels were cut by 10 per cent in 2019 and had remained frozen at that level ever since). Even so, Ontario's rates of tuition increase remain among the lowest in Canada.
The university has welcomed the new provincial supports as a key step in stabilizing the post-secondary sector.
"The province's investment is welcome and will help mitigate the strain of a challenging budget year, but the university needs to continue to find ways to address long-term pressures in a tighter financial environment," said Mike Snowdon, acting assistant vice-president, planning and budget.
"Revenue growth in the coming years is unlikely to outpace inflation, and we must remain laser-focused on managing expenses while safeguarding and advancing excellence in teaching, research and student support."
That includes realizing some $20 million in savings through staff reductions across the university - mostly through vacancy management, elimination of unfilled positions and attrition - and a five-per-cent decrease in central discretionary spending to offset investments in shared services such as library collections, improvements to enterprise risk management and AI implementation.
The budget also sets aside $1 million to help optimize and future-proof administrative systems and processes throughout the university.
Building for the future
The budget advances an array of institutional priorities through the University Fund. These include $4.1 million to recruit emerging scholars, complementing federal investments such as the Canada Impact+ Research Chairs program; $4.2 million to support divisional priorities including student mental health services and co-op offerings; and stable base funding for the Black Founders Network, Black Research Network and Indigenous Research Network.
Student housing remains a keen area of focus, with more than 750 student residence spaces under construction, including a new residence building at U of T Mississauga that will open in September.
In all, the university plans to add up to 5,500 new residence beds over the next decade - part of an ambitious, long-term vision that comprises $4.4 billion in capital projects at various stages of planning. That includes 22 academic and institutional projects and another six projects driven by the Four Corners real estate strategy, which focuses on building spaces for innovation, student and faculty housing and ancillary retail that help generate revenue that can be reinvested in U of T's academic mission.
"Our capital program is designed to meet the evolving needs of our community while strengthening the university for decades to come," said Scott Mabury, vice-president, operations and real estate partnerships. "We are building with intention - expanding housing, modernizing academic spaces and advancing projects that support innovation and enrich community life."
