Canada Immigration Update: PNP Boost Amid Student Cap Cuts

Canada to Cut International Student Admissions in Half by 2026: What You Need to Know

• Canada plans to reduce international student admissions to 155,000 in 2026—nearly half of previous targets
• Lower admission numbers could benefit students already in Canada by reducing competition
• Economic immigration streams, such as the Canadian Experience Class, remain a top priority
• Provincial Nominee Program (PNP) allocations are increasing, creating more opportunities for international graduates
• Despite the cuts, international students will still make up around 40% of all new temporary residents
• Graduate students pursuing Master’s and PhD programs will be exempt from the study permit cap starting 2026

Big changes are coming to Canada’s international student program. If you’re thinking about studying in Canada—or are already here—there’s a lot to unpack from the federal government’s latest Immigration Levels Plan for 2026–2028. The most eye-catching update? A significant reduction in the number of international students Canada plans to admit.

Let’s break down what this means, especially for students already in Canada or hoping to make the leap soon.

What’s Changing: The Numbers Behind the Cut

According to the newly released Immigration Levels Plan, the number of new international student admissions will be nearly slashed in half by 2026 compared to previous expectations. Here’s how the numbers stack up:

This dramatic shift reflects the government’s attempt to balance temporary and permanent resident numbers while staying realistic about processing capacity and labour market needs.

Why This Could Be Good News If You’re Already in Canada

For international students who are already studying or working in Canada, this change could actually work in your favour. With fewer newcomers entering the system, competition for entry-level jobs, Post-Graduation Work Permits (PGWPs), and permanent residency (PR) pathways is expected to ease.

Many students use a PGWP to gain Canadian work experience, which is a key eligibility requirement for PR streams like the Canadian Experience Class (CEC). With fewer PGWP holders entering the job market in future years, those who are already in Canada may have a clearer path to employment and permanent residency.

Focus on In-Canada Applicants for Permanent Residency

Another big takeaway from the 2026–2028 Plan? Canada is doubling down on its commitment to transition in-country temporary residents—like international students—to permanent residents.

In fact, 64% of all PR admissions in 2026 will come through economic immigration streams. These include the Federal High Skilled programs, such as the CEC, which require at least one year of qualified Canadian work experience.

The government has made it clear: if you’re already here with the right skills and experience, your chances of becoming a permanent resident are stronger than ever.

Provincial Nominee Programs (PNPs) Get a Boost

There’s also great news for students planning to stay in Canada after graduation. The federal government is significantly increasing allocations for the Provincial Nominee Program (PNP)—by a whopping 66% in 2026 compared to 2025.

Many provinces have special PNP streams designed specifically for international graduates from local post-secondary institutions. With more nomination spots available, provinces may revive paused immigration streams and launch new ones to welcome more student grads.

For instance, British Columbia postponed the launch of three new student-oriented immigration streams in 2025 due to limited nomination allocations. With the increase in 2026, we can expect those programs to get back on track.

Want to learn more about how PNPs work in your province? Check out our guide on the Manitoba PNP.

International Students Still a Large Share of Temporary Residents

Even with decreased numbers, international students are projected to make up a substantial portion of Canada’s temporary residents over the next few years.

That means students will still account for roughly 40% of all new temporary resident admissions each year between 2026 and 2028. So while the overall numbers are going down, the importance of international students to Canada’s immigration and labour market strategy remains significant.

In Line with Recent Trends

This reduction isn’t coming out of nowhere. In fact, it reflects what’s already been happening on the ground. In 2025, Canada has been falling well short of its international student admission targets. From January to August 2025, just 89,430 new study permits were issued—only about 30% of the original goal of 305,900.

By setting more realistic targets for the next few years, the government is aligning policy with its actual capacity to process applications and support new arrivals.

Graduate Students Get a Break: Exemptions & Fast-Tracking

There’s also a silver lining for students pursuing graduate studies. Starting January 1, 2026, those enrolled in Master’s or doctoral programs will be exempt from the study permit cap. That means these students won’t be affected by the reduced quota and will have more predictable access to study permits.

In addition, doctoral students (and their families) will benefit from expedited processing. According to Immigration, Refugees, and Citizenship Canada (IRCC), some documents could arrive in as little as two weeks.

Final Thoughts: Planning Ahead Is More Important Than Ever

If you’re planning to study in Canada—or are already here—it’s crucial to stay informed and proactive. Lower international student targets may seem discouraging, but they could open up more opportunities for those already in the system. Whether it’s through a PGWP, the CEC, or a PNP, pathways to permanent residency remain open and even expanding for the right candidates.

Thinking about your next steps? Whether you’re considering studying in Canada, staying after graduation, or pursuing permanent residency, now’s the time to start planning strategically.

Contact us today to explore your options or learn more about upcoming immigration changes.