The government of Canada has announced that international Master’s and PhD students enrolling in public Designated Learning Institutions (DLIs) will be exempt from the new 2026 federal study permit caps.
The decision to implement the cap exemption for advanced degree candidates comes on the heels of the government’s plan to reduce the total number of new international student arrivals to 155,000 in 2026.
Under the new immigration shift, foreign student permits would be reduced from 437,000 in 2025 to 155,000 in 2026, and 150,000 for the two following years.
Canada’s Finance Minister, François-Philippe Champagne, made this known while delivering the federal budget.
“We are taking back control of our immigration system and putting Canada on a trajectory to bring immigration back to sustainable levels,” Champagne said.
By removing the Master’s and PhD students from the 2026 study permit caps, Immigration, Refugees and Citizenship Canada (IRCC) said it is ensuring that the limits do not hinder the recruitment of high-skill researchers.
The government agency also stated that Master’s and PhD students will be relieved of the requirement to obtain a Provincial or Territorial Attestation Letter (PAL/TAL), streamlining their application process considerably.
In addition to the exemption, PhD applicants from outside Canada will have their study permits processed within 14 days. This fast-track option also includes accompanying family members.
The Canadian government has also launched a new IRCC webpage for graduate students. It shares information about study options, scholarships, and work opportunities after graduation.
Reacting to the development, Robert Asselin, CEO of U15 Canada, said the decision is “an important step towards sustainably rebuilding Canada’s immigration system, focused on attracting top talent and leveraging our reputation as a global destination for excellence”.
Asselin added that the graduate student exemption from the 2026 study permit cap was “vital to ensure that study permit caps avoid unintentionally limiting Canada’s ability to attract talent in highly competitive fields”.
Similarly, CBIE president Larissa Bezo hailed the news as a “welcome change following much advocacy from the sector”. She said the approach would support institutional efforts to attract high-quality talent and contribute to Canada’s ambitious research agenda.
“The change will also hopefully facilitate more PAL/TAL allocations for highly skilled talent of interest to Canada in a range of fields below the Master’s level, including in applied research, skilled trades, health, social sciences, and humanities,” added Bezo.
“The new website boasts familiar ‘study and work’ as well as ‘apply with your family’ messaging that was once used more broadly for the entire Canadian post-secondary system,” registered Canadian Immigration Consultant (RCIC) Matthew McDonald said.
The direction announced yesterday is encouraging. It shows the government is listening to the sector
Also, UBC’s director of global engagement, Philipp Reichert, in his reaction said: “The exclusion of certain groups of graduate students from the PAL requirement starting in January is a strong signal of support for advanced research and innovation in Canada.
“The direction announced yesterday is encouraging. It shows the government is listening to the sector and making adjustments that balance policy integrity with Canada’s continued competitiveness in attracting top global talent.”
