Tag: cap

  • Over 5k HE job cuts in Canada since study permit caps

    Over 5k HE job cuts in Canada since study permit caps

    • Over 5,000 higher education jobs in Canada have been cut since the government clamped down on study permit numbers – with Ontario, British Columbia and Quebec the hardest hit.
    • The thousands of job cuts tracked by a higher education expert are just those that have been made public, with the possibility that there have been many more.
    • Institutions are also having to consolidate the programs they offer, as billions of dollars worth of budget cuts make their mark.

    More than 5,000 jobs have been lost in the post-secondary education sector in Canada since the federal government first imposed a study permit cap in January 2024, according to research from higher education consultant Ken Steele. Further restrictions – capping study permits at a scant 473,000 – were introduced in September.

    But the cuts collated by Steele are just the ones that have been made public. A number of institutions are not disclosing their drops in employment in teaching and administration.

    With Liberal Mark Carney triumphing in last month’s election, his new government must address worries about jobs disappearing, such as in the auto manufacturing sector, due to US President Donald Trump’s punishing tariffs.

    Slashing jobs in education – due to the government’s own actions – is a huge mistake, Steele said.

    “The unilateral imposition of extreme, abrupt, student visa caps have thrown Canadian higher education into crisis, decimated our reputation abroad and precipitously destroyed one of our major ‘export’ industries,” he told The PIE News.

    For the past year, Steele has been tracking reported job losses at universities and colleges across the country. As expected, programs that relied heavily on international students were forced to make the biggest cuts.

    According to Steele’s data, Mohawk College in Hamilton, Ontario, has eliminated almost 450 positions. The University of Windsor, also in Ontario, has reduced employment by 157 spots.

    The total of 5,267 cuts across the country almost certainly underreports the actual job losses. “Many institutions are keeping quiet about their cuts, including the Ontario private colleges that were partnering with public colleges,” he noted.

    It’s not just jobs that are being slashed. Post-secondary institutions have been forced to eliminate programs and reduce spending.

    Fanshawe College in London, Ontario, appears to lead the way in getting rid of programs. It has suspended 50 fields of study, including advanced live digital media, construction project management and retirement residence management. In all of Canada, Ontario colleges are the top eight for suspending programs, accounting for two-thirds of the 453 cuts.

    The financial hit is significant. “So far, I have tracked CAD$2.2 billion in budget hits at post-secondary schools across the country,” Steele said. This includes last year’s cuts as well as planned reductions for next year.

    If Canada reopened its doors tomorrow, it would likely take until at least 2030 to recover the international enrolment momentum we had just two years ago
    Ken Steele, education consultant

    Ontario was most reliant on international revenues and has been hardest hit by the study permit cap. Steele’s figures suggest that 70% of the cuts have struck that province, with British Columbia and Quebec also suffering. The remaining seven provinces faced more modest losses.

    In Vancouver last month, dozens of staff and faculty at several post-secondary institutions staged a protest of the study permit cap. Taryn Thompson, vice-president of the Vancouver Community College Faculty Association, said there have been 60 layoffs at her school alone, with more expected in the coming months.

    The big question is: Will the new federal government ease the cap? The issue of post-secondary funding was hardly raised at all during the election campaign, overshadowed by concerns about Trump’s threats to annex Canada.

    There’s also the concern about restoring Canada’s reputation following the study permit debacle.

    “If Canada reopened its doors tomorrow, it would likely take until at least 2030 to recover the international enrolment momentum we had just two years ago,” warned Steele.

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  • National Science Foundation faces lawsuit over 15% indirect research cap

    National Science Foundation faces lawsuit over 15% indirect research cap

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      Dive Brief:

    • A group of universities and higher education associations is suing the National Science Foundation over its new cap on reimbursement for indirect research costs for all future college grants.
    • In court documents filed Monday, the plaintiffs — led by the American Council on Education, the Association of American Universities and the Association of Public and Land-Grant Universities — allege the unilateral 15% cap, which took effect May 5, violates the law in “myriad respects” and that its effects will be “immediate and irreparable.”
    • The new lawsuit follows two other legal challenges over similar caps implemented by the National Institutes of Health and the U.S. Department of Energy — both of which have been blocked, at least temporarily.

    Dive Insight:

    NIH implemented the first federal cap on indirect research costs in February. Colleges and higher ed groups sued, and a federal judge permanently blocked the agency’s plan last month. 

    In the ruling, the judge said NIH unlawfully implemented the cap and violated constitutional prohibitions on applying new rules retroactively. The Trump administration quickly appealed the ruling, and the case is ongoing.

    Next came the Energy Department. In April, the agency announced the same 15% cap on indirect research costs, alleging the plan would save taxpayers $405 million annually. Again, colleges sued, and a federal judge blocked the plan — albeit temporarily — while the lawsuit moves forward.

    The ACE, AAU and APLU are plaintiffs in both cases.

    Now NSF has introduced its own cap, to the chagrin of colleges and higher ed experts. When announcing the 15% cap, the agency argued the move would streamline and add transparency to the funding process and “ensure that more resources are directed toward direct scientific and engineering research activities.”

    But the new lawsuit argues that NSF’s policy echoes the other agencies’ attempts, to deleterious effect.

    “NSF’s action is unlawful for most of the same reasons, and it is especially arbitrary because NSF has not even attempted to address many of the flaws the district courts found with NIH’s and DOE’s unlawful policies,” it said. 

    Like the lawsuits against NIH and Energy Department’s policies, the plaintiffs allege that the NSF’s cap oversteps the agency’s authority.

    “It beggars belief to suggest that Congress — without saying a word — impliedly authorized NSF to enact a sweeping, one-size-fits-all command that will upend research at America’s universities,” it said.

    In fiscal 2024, Congress gave NSF $7.2 billion to fund research and related activities. In turn, the agency funded projects at 1,850 colleges — more than 1 in 4 of the higher education institutions in the U.S. eligible to receive federal dollars.

    That year, NSF awarded Arizona State University, one of the plaintiffs, 172 awards worth a total of $197.5 million in anticipated and obligated funding, according to court documents. Prior to the NSF’s new policy, the institution negotiated a 57% rate for indirect costs in fiscal 2026. 

    The University of Illinois, another plaintiff, received just over $129 million in NSF funding in fiscal 2024 — making the agency its biggest funder — and negotiated an indirect research funding rate of 58.6%.

    The university said in court documents that it has received the most NSF funding of all U.S. colleges for six years in a row, and it is poised to lose more than $23 million a year if the agency’s new cap is allowed to continue.

    The college plaintiffs are:

    • Arizona State University.
    • Brown University, in Rhode Island.
    • California Institute of Technology.
    • The University of California.
    • Carnegie Mellon University, in Pennsylvania.
    • The University of Chicago.
    • Cornell University.
    • The University of Illinois.
    • Massachusetts Institute of Technology.
    • The University of Michigan.
    • The University of Minnesota.
    • The University of Pennsylvania.
    • Princeton University, in New Jersey.

    The lawsuit also cited an attempt by the first Trump administration to cap rates for indirect research at a federal agency. In 2017, the White House proposed cutting the cap to 10% for all NIH grants. Congress – then under Republican control as it is now — “identified serious problems immediately” and took “swift and bipartisan” action against the proposal, the lawsuit said.  

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  • Trump’s Higher Education Crackdown: Culture War in a Cap and Gown

    Trump’s Higher Education Crackdown: Culture War in a Cap and Gown

    In a recent flurry of executive orders, former President Donald Trump has escalated his administration’s long-running war on American higher education, targeting college accreditation processes, foreign donations to universities, and elite institutions like Harvard and Columbia. Framed as a campaign for accountability and meritocracy, these actions are in reality part of a broader effort to weaponize public distrust, reinforce ideological purity tests, and strong-arm colleges into political obedience.

    But even if Trump’s crusade were rooted in good faith—which it clearly is not—his chosen mechanism for “fixing” higher education, the accreditation system, is already deeply flawed. It’s not just that Trump is using a broken tool for political ends—it’s that the tool itself has long been part of the problem.

    Accreditation: Already a Low Bar

    Accreditation in U.S. higher education is often mistaken by the public as a sign of quality. In reality, it’s often a rubber stamp—granted by private agencies funded by the very schools they evaluate. “Yet in practice,” write economists David Deming and David Figlio, “accreditors—who are paid by the institutions themselves—appear to be ineffectual at best, much like the role of credit rating agencies during the recent financial crisis.”

    As a watchdog of America’s subprime colleges and a monitor of the ongoing College Meltdown, the Higher Education Inquirer has long reported that institutional accreditation is no sign of academic quality. Worse, it is frequently used by subprime colleges as a veneer of legitimacy to mask predatory practices, inflated tuition, and low academic standards.

    The Higher Learning Commission (HLC), the nation’s largest accreditor, monitors nearly a thousand institutions—ranging from prestigious schools like the University of Chicago and University of Michigan to for-profit, scandal-plagued operations such as Colorado Technical University, DeVry University, University of Phoenix, and Walden University. These subprime colleges receive billions annually in federal student aid—money that flows through an accreditation pipeline that’s barely regulated and heavily compromised.

    On the three pillars of accreditation—compliance, quality assurance, and quality improvement—the Higher Learning Commission often fails spectacularly when it comes to subprime institutions. That’s not just a bug in the system; it’s the system working as designed.

    Who Watches the Watchers?

    Accreditors like the HLC receive dues from member institutions, giving them a vested interest in keeping their customers viable, no matter how exploitative their practices may be. Despite objections from the American Association of University Professors, the HLC has accredited for-profit colleges since 1977 and ethically questionable operations for nearly two decades.

    As Mary A. Burgan, then General Secretary of the AAUP, put it bluntly in 2000:

    “I really worry about the intrusion of the profit motive in the accreditation system. Some of them, as I have said, will accredit a ham sandwich…”

    [Image: From CHEA: Higher Learning Commission dues for member colleges. Over the last 30 years, HLC has received millions of dollars from subprime schools like the University of Phoenix.]

    The Council for Higher Education Accreditation (CHEA), which oversees accreditors, acts more like a trade association than a watchdog. Meanwhile, the U.S. Department of Education—the only federal entity with oversight responsibility—has done little to ensure quality or accountability. Under the Trump-DeVos regime, the Department actively dismantled what little regulatory framework existed, rolling back Obama-era protections that aimed to curb predatory schools and improve transparency.

    In 2023, an internal investigation revealed that the Department of Education was failing to properly monitor accreditors—yet Trump’s solution is to hand even more power to this broken apparatus while demanding it serve political ends.

    Harvard: Not a Victim, But a Gatekeeper of the Elite

    While Trump’s attacks on Harvard are rooted in personal and political animus, it’s important not to portray the university as a defenseless bastion of the common good. Harvard is already deeply entrenched in elite power structures—economically, socially, and politically.

    The university’s admissions policies have long favored legacy applicants, children of donors, and the ultra-wealthy. It has one of the largest endowments in the world—over $50 billion—yet its efforts to serve working-class and marginalized students remain modest in proportion to its vast resources.

    Harvard has produced more Wall Street bankers, U.S. presidents, and Supreme Court justices than any other institution. Its graduates populate the upper echelons of the corporate, political, and media elite. In many ways, Harvard is the establishment Trump claims to rail against—even if his own policies often reinforce that very establishment.

    Harvard is not leading a revolution in equity or access. Rather, it polishes the credentials of those already destined to lead, reinforcing a hierarchy that leaves most Americans—including working-class and first-generation students—on the outside looking in.

    The Silence on Legacy Admissions

    While Trump rails against elite universities in the name of “meritocracy,” there is a glaring omission in the conversation: the entrenched unfairness of legacy admissions. These policies—where applicants with familial ties to alumni receive preferential treatment—are among the most blatant violations of meritocratic ideals. Yet neither Trump’s executive orders nor the broader political discourse dare to address them.

    Legacy admissions are a quiet but powerful engine of privilege, disproportionately benefiting white, wealthy students and preserving generational inequality. At institutions like Harvard, Yale, and Princeton, legacy applicants are admitted at significantly higher rates than the general pool, even when controlling for academic credentials. This practice rewards lineage over talent and undermines the very idea of equal opportunity that higher education claims to uphold.

    Despite bipartisan rhetoric about fairness and access, few politicians—Democratic or Republican—have challenged the legitimacy of legacy preferences. It’s a testament to how deeply intertwined elite institutions are with the political and economic establishment. And it’s a reminder that the war on higher education is not about fixing inequalities—it’s about reshaping the system to serve different masters.

    A Hypocritical Power Grab

    Trump’s newfound concern with educational “results” is laced with hypocrisy. The former president’s own venture into higher education—Trump University—was a grift that ended in legal disgrace and financial restitution to defrauded students. Now, Trump is posing as the savior of academic merit, while promoting an ideologically-driven overhaul of the very system that allowed scams like his to thrive.

    By focusing on elite universities, Trump exploits populist resentment while ignoring the real scandal: that billions in public funds are siphoned off by institutions with poor student outcomes and high loan default rates—many of them protected by the very accrediting agencies he now claims to reform.

    Conclusion: Political Theater, Not Policy

    Trump’s latest actions are not reforms—they’re retribution. His executive orders target symbolic elites, not systemic rot. They turn accreditation into a partisan tool while leaving the worst actors untouched—or even empowered.

    Meanwhile, elite institutions like Harvard remain complicit in maintaining a class hierarchy that benefits the powerful, even as they protest their innocence in today’s political battles.

    Real accountability in higher education would mean cracking down on predatory schools, reforming or replacing failed accreditors, and restoring rigorous federal oversight. But this administration isn’t interested in cleaning up the swamp—it’s repurposing the muck for its own ends.

    The Higher Education Inquirer remains committed to pulling back the curtain on these abuses—no matter where they come from or how well they are disguised.

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  • Judge Blocks Energy Dept. Plan to Cap Indirect Cost Rates

    Judge Blocks Energy Dept. Plan to Cap Indirect Cost Rates

    A federal judge temporarily blocked the U.S. Department of Energy’s plan to cap universities’ indirect research cost reimbursement rates, pending a hearing in the ongoing lawsuit filed by several higher education associations and universities.

    Judge Allison D. Burroughs of the U.S. District Court for Massachusetts wrote in the brief Wednesday order that the plaintiffs had shown that, without a temporary restraining order, “they will sustain immediate and irreparable injury before there is an opportunity to hear from all parties.”

    Plaintiffs include the Association of American Universities, the American Council on Education, the Association of Public and Land-grant Universities and nine individual universities, including Brown, Cornell and Princeton Universities and the Universities of Michigan, Illinois and Rochester. They sued the DOE and department secretary Chris Wright on Monday, three days after the DOE announced its plan.

    Department spokespeople didn’t return Inside Higher Ed’s requests for comment Thursday afternoon.

    DOE’s plan is to cap the reimbursement rates at 15 percent. Energy grant recipients at colleges and universities currently have an average 30 percent indirect cost rate. The Trump administration has alleged that indirect costs are wasteful spending, although they are extensively audited.

    The DOE sends more than $2.5 billion a year to over 300 colleges and universities. Part of that money covers costs indirectly related to research that may support multiple grant-funded projects, including specialized nuclear-rated facilities, computer systems and administrative support costs.

    The department’s plan is nearly identical to a plan the National Institutes of Health announced in February, which a judge also blocked.

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  • Federal judge freezes Energy Department’s 15% cap on indirect costs

    Federal judge freezes Energy Department’s 15% cap on indirect costs

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    A federal judge Wednesday temporarily blocked the U.S. Department of Energy from implementing a 15% cap on grant funding for indirect costs. The ruling came just days after a dozen higher education associations and colleges sued the department, calling the new policy an overstep of authority and a threat to U.S. research and advancement.

    In the ruling Wednesday, U.S. District Judge Allison Burroughs said the plaintiffs — including higher ed groups like the American Council on Education and threatened colleges like the University of Michigan and Brown University — had successfully demonstrated that they would “sustain immediate and irreparable injury” if the policy were allowed to proceed in tandem with the lawsuit. 

    Burroughs’ temporary restraining order bars the Energy Department — until further court order — from terminating grants, either under the challenged policy or “based on a grantee’s refusal to accept an indirect cost rate less than their negotiated rate.” The judge is also requiring the department to submit biweekly reports confirming that the federal funds are being distributed during the pause.

    When announcing the funding cap last Friday, the Energy Department said the move would save $405 million annually and reduce what it called inefficient spending. Indirect research costs typically include overhead expenses such as facilities and administrative support staff.

    The department said the change would affect over 300 colleges and that it would terminate grants to any institutions that failed to comply.

    But the plaintiffs said the policy’s rapid implementation would give institutions no choice but to scale back funding and lay off staff.

    Their lawsuit, filed in U.S. District Court in Massachusetts, called the Energy Department’s policy “a virtual carbon copy” of one announced in February by the National Institutes of Health. A federal judge permanently blocked NIH’s plan to cap indirect cost funding at 15% earlier this month, a decision the agency quickly appealed. The NIH plan would cost research universities billions in annual funding.

    “DOE’s action is unlawful for most of the same reasons and, indeed, it is especially egregious because DOE has not even attempted to address many of the flaws the district court found with NIH’s unlawful policy,” the plaintiff’s lawsuit said.

    The next hearing in the case is set for April 28 before the same court. 

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  • Canadian study permit approvals fall far below cap targets

    Canadian study permit approvals fall far below cap targets

    Canadian study permit approvals are on track to fall by 45% in 2024, rather than the 35% planned reduction of last year’s controversial international student caps, new IRCC data analysed by ApplyBoard has revealed.  

    “The caps’ impact was significantly underestimated,” ApplyBoard founder Meti Basiri told The PIE News. “Rapidly introduced policy changes created confusion and had an immense impact on student sentiment and institutional operations.  

    “While aiming to manage student numbers, these changes failed to account for the perspectives of students, and their importance to Canada’s future economy and communities,” he continued.  

    The report reveals the far-reaching impact of Canada’s study permit caps, which were announced in January 2024 and followed by a tumultuous year of policy changes that expanded restrictions and set new rules for post-graduate work permit eligibility, among other changes.  

    For the first 10 months of 2024, Canada’s study permit approval rate hovered just above 50%, resulting in an estimated maximum of 280,000 approvals from K-12 to postgraduate levels. This represents the lowest number of approvals in a non-pandemic year since 2019. 

    Source: IRCC. Disclaimer: Data for 2021-Oct 2024 is sourced from IRCC. Full-year 2024 figures are estimates extrapolated from Jan-Oct 2024 and full-year 2021-2023 IRCC data. Projections may be subject to change based on changing conditions and source data.

    “Even from the early days of the caps, decreased student interest outpaced government estimates,” noted the report, with stakeholders highlighting the reputational damage to Canada as a study destination.  

    “Approvals for capped programs fell by 60%, but even cap-exempt programs declined by 27%. Major source countries like India, Nigeria, and Nepal saw over 50% declines, showing how policies have disrupted demand across all study levels,” said Basiri.  

    Following major PGWP and study permit changes announced by the IRCC in September 2024, four out of five international student counsellors surveyed by ApplyBoard agreed that Canada’s caps had made it a less desirable study destination. 

    Though stakeholders across Canada recognised the need to address fraud and student housing issues, many had urged the federal government to wait until the impact of the initial caps was clear before going ahead with seemingly endless policy changes.  

    At the CBIE conference in November 2024, immigration minister Marc Miller said he “profoundly disagreed” with the prevailing sector view that the caps and subsequent PGWP and permanent residency restrictions had been an “overcorrection”.

    Post-secondary programs, which were the primary focus of the 2024 caps, were hit hardest by the restrictions, with new international enrolments at colleges estimated to have dropped by 60% as a result of the policies.  

    While Canada’s largest source destinations saw major declines, the caps were not felt evenly across sending countries. Senegal, Guinea and Vietnam maintained year-over-year growth, signalling potential sources of diversity for Canada’s cap era.   

    The report also highlighted Ghana’s potential as a source destination, where approval ratings – though declining from last year – remain 175% higher than figures from 2022. 

    Rapidly introduced policy changes created confusion and had an immense impact on student sentiment

    Meti Basiri, ApplyBoard

    The significant drop in study permit approvals was felt across all provinces, but Ontario – which accounted for over half of all study permit approvals in 2023 – and Nova Scotia have seen the largest impact, falling by 55% and 54.5% respectively.

    Notably, the number of study permits processed by the IRCC dropped by a projected 35% in 2024, in line with the government’s targets, but approval rates have not kept pace.

    When setting last year’s targets, minister Miller only had the power to limit the number of applications processed by the IRCC, not the number of study permits that are approved.  

    The initial target of 360,000 approved study permits was based on an estimated approval rate of 60%, resulting in a 605,000 cap on the number of applications processed. 

    Following new policies such as the inclusion of postgraduate programs in the 2025 cap, Basiri said he anticipated that study permit approvals would remain below pre-cap levels.  

    “While overall student numbers may align with IRCC’s targets, the broader impact on institutional readiness and Canada’s reputation will be key areas to watch in 2025,” he added.  

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