Canadian universities are barely scraping by. Queen’s is in a whole lot of debt, Laurentian declared insolvency in 2021, Alberta universities are slashing budgets, and McGill and Concordia are in danger over an out-of-province tuition battle.
40% drop in international students which translates into a decimated university system. The federal government hasn't changed funding since 1966 and only pay 20%. All the overhead is funded by international students.
This is how multiple governments want it.
By defunding, or increasing funding at a rate lower than inflation, they force higher education into focusing on foreign students who pay more.