Queen’s made progress in addressing its financial pressures in 2025-26, supported by new provincial funding and measures taken across the university to moderate spending.

The Audited Consolidated Financial Statements for the year ending April 30, 2026, approved by the Board of Trustees, also show investment returns that help Queen’s support academic priorities and fund current and future campus projects. 
 

New funding

In February 2026, the Ontario government announced new funding for colleges and universities following seven years of significant financial constraint in the sector. The province had reduced domestic tuition by 10 per cent in 2019 and subsequently froze rates, while the operating grant funding allocated to universities by the province on a per student basis remained largely unchanged.

Queen’s received an additional $21.2 million in operating grants during the fiscal year, an increase of about 10 per cent. This support, together with spending restraint measures across the university, helped improve the annual financial results.  

The new provincial support provides welcome near-term revenue relief, but the longer-term funding outlook remains challenging for the university. Persistent inflation, annual salary growth averaging about four per cent, and federal policy changes affecting international enrolment continue to place pressure on university finances.

“Taken together, these results should give Queen’s a firmer foundation as we manage ongoing pressures and continue to support our academic mission,” says Donna Janiec, Vice-Principal (Finance and Administration). “We must continue building on this progress and aligning ongoing expenses with reliable revenues. Careful financial stewardship helps Queen’s meet today’s needs while investing in the future set out in our Bicentennial Vision, advancing excellence in teaching and research and making a lasting contribution to society.”

S&P Global Ratings and Morningstar DBRS reaffirmed Queen’s strong credit ratings of AA+ and AA, respectively, while stressing the importance of continued strong financial management to support long-term financial sustainability. Credit ratings give investors and lenders confidence in Queen's credit worthiness, and the lower risk reduces the cost to access these funds.
 

Investment returns support long-term priorities

Queen’s also benefited from strong gains on its invested funds that accounted for most of the $160.4-million consolidated surplus reported in its Audited Consolidated Financial Statements.

These returns, while subject to market volatility, improve Queen’s overall financial position, and help provide for both short-term and long-term needs, with a sizable portion generated through Queen’s Pooled Endowment Fund from invested donor contributions.

Income from this fund supports a range of academic priorities, including nearly 1,900 student awards, more than 100 faculty positions, and over 120 academic programs, such as lecture series, teaching assistance, library funds, and special research initiatives.

While income from the Pooled Endowment Fund supports these priorities, income from Queen’s Pooled Investment Fund supports the Operating Fund and helps build reserves for major capital projects, including new buildings and the renewal of laboratories, classrooms, and other campus spaces.  

Over the past year, capital funds supported the construction of CASTLE Laboratory, the Environmental Science Research Centre, and the expansion of the Queen's Biomedical Research Facility, providing facilities and infrastructure for teaching, research, and student training.

To support continuing work on campus, Queen’s held $116.5 million in capital reserves at the end of the 2025-26 fiscal year for projects already underway, as well as for ancillary and athletics capital projects. A further $189 million was reserved for future capital development. These reserves will help fund future projects such as the renovation of the former KCVI, and a proposed new science building, which together will cost well over $500 million.

“Major capital projects take years to plan and complete, and the funds to support them must be built over time,” says Janiec. “Apart from philanthropy, investment income is our only source of funding for these projects, other than debt, which adds a significant cost to the operating budget. Setting aside funds when possible, helps us reduce the debt burden and provide the facilities our students and researchers will need for decades to come. This planning is essential to Queen’s future as one of Canada’s preeminent research-intensive universities.”

Staff and faculty can learn more about Queen’s financial position and outlook at the virtual Financial Information Forum on October 15, from 10 to 11 a.m. Senior leaders will provide updates and answer questions during a moderated Q&A. Advance registration is required.