Re: Proposed Budgetary Post-Secondary Education Reductions

25 February 2026

Honourable Jean-Claude D’Amours
Minister of Post-Secondary Education, Training and Labour
P.O. Box 6000
Fredericton, NB E3B 5H1 

Re: Proposed Budgetary Post-Secondary Education Reductions

Dear Minister D’Amours,

I am writing today to express serious concerns regarding reports that the Government of New Brunswick is considering significant reductions to post-secondary education funding in the upcoming 2026-27 provincial budget. As outlined in our pre-budget submission, the Fredericton Chamber of Commerce fully appreciates and supports the need to find balance in the province’s fiscal plan, including reducing the deficit. However, in our opinion, this strategy would trade minimal short-term gain for significant long-term pain. We see education as the key to future prosperity, including economic development strategies, leveraging federal funding opportunities, population growth, productivity gains, and improving social outcomes. 

One education system, one pathway

Education is the foundation of labour supply, productivity, and long-term retention and education investments deliver the best return when designed as one talent pathway – from K–12 capacity and teacher supply, to postsecondary learning, to work integrated learning and first jobs, to long-term careers in New Brunswick. Education is crucial for addressing one of the province’s key challenges to growth: developing a skilled workforce. Investing in K-12 and higher education promotes long-term economic growth and addresses social issues like healthcare, housing, and public safety. This holistic approach cultivates a workforce that drives innovation, productivity, and competitiveness.

A “one system” approach means postsecondary institutions and employers are embedded at every step, co-designing skills, scaling work integrated learning, and converting credentials into first jobs and long-term careers in New Brunswick. This also requires recognizing postsecondary education as an integral part of the education journey, where institutions have both the responsibility and the leverage to elevate the entire system by aligning learning, credentials, and applied experience with New Brunswick’s future needs.

Minister Legacy has expressed the government’s intention to continue to invest in “education” – we agree and encourage the government to take the view that “education” is this continium pathway, not exclusively the K-12 system. 

Economic Development

New Brunswick has the opportunity to define its place in a rapidly evolving global economy – one increasingly powered by ideas, innovation, technology and intellectual capital.  Others are already seeking to position themselves in this manner – from Ontario’s recent announcement of a 30% increase in post-secondary funding to Europe’s commitment of $500M euros to attract global talent in 2025. 

We hosted ACOA Minister Sean Fraser for an event last month and his opening remarks framed Atlantic Canada as being in a critical window for action. He acknowledged the region has made real progress, but emphasized that sustaining it will require bold thinking, improved productivity, and deeper collaboration across provinces, sectors, and levels of government.   

In a constrained fiscal environment, his message was to prioritize the investments that produce long-term impact, including improving productivity through innovation and technology adoption. A central theme of the conversation was the Knowledge Industry and its growing role beyond the local economy. Minister Fraser framed Fredericton (and New Brunswick’s) knowledge resources as more than a regional success story, positioning its concentration of universities, colleges, research and training institutions, cybersecurity expertise, engineering services, and advanced professional services as a national contributor to innovation, economic security, and competitiveness.

Population Growth

Last fall, we worked collaboratively with the Atlantic Chamber of Commerce to produce a regional population growth strategy with the post-secondary sector positioned as an anchor. The strategy proposes potential pilot programs recognizing Atlantic Canada as an education destination, a policy concept that positions education as a driver of population growth by enhancing pathways to permanent residency for international students and strengthening retention of domestic graduates.

This strategy reflects a dual focus: retaining and engaging our domestic population while attracting and supporting newcomers from across Canada and around the world. These priorities align closely with New Brunswick’s economic and workforce goals and offer practical solutions to address challenges such as out-migration and labour shortages.

Key recommendations include:

  1. Atlantic Graduate Retention Tax Credit – Encourage post-secondary graduates—domestic students from across the country and international students who follow the permanent residency path—to remain and work in Atlantic Canada for at least three years, addressing regional retention challenges and workforce shortages.
  2. Atlantic PSE Marketing & Recruitment Partnership – Position Atlantic Canada as a premier destination for both domestic and international students through coordinated marketing.
  3. K–12 Industry Integration & Skills Elevation – Build long-term talent pipelines by embedding industry-relevant skills and mentorship into K–12 education.
  4. International Credential Recognition Supports – Reduce barriers to employment for international students and skilled immigrants by improving credential recognition.
  5. Experiential Learning for Students – Enhance retention by connecting domestic and international students to local employers through meaningful work experiences.
  6. Immigration System Reform: Ending “Brain Waste” – Ensure immigrants’ skills are fully utilized in Atlantic labour markets, reducing overeducation and underemployment.

Conclusion

I appreciate your attention to this matter and hope your government can find other ways to reduce costs in the upcoming budget. Post-secondary institutions are some of our greatest assets and are still dealing with the arbitrary reductions in international student allocations based primarily on the actions of institutions outside of the province – an internal blow as being proposed now will, of course, further exacerbate this situation.

When we co-hosted Shaping the Debate: The Knowledge Industry Shift with the University of New Brunswick last fall, one of the key themes explored was how we can prepare minds for a machine-shaped world – a variety of educational options are required to facilitate these outcomes.

The discussion centered on the human advantage, the skills that differentiate us from machines. So-called “soft skills”, once considered secondary, are now recognized as core skills. Critical thinking, creativity, adaptability, empathy, and communication are the competencies that will define our workforce and society in the AI era.  

The panel emphasized the enduring importance of the humanities and liberal arts in developing critical thinking, communication, analytical thinking and literacy. 

As you were recently quoted in the Telegraph Journal (24 February 2026) after the excellent announcement to provide funding support to the Research and Productivity Council: “It’s not a secret the province is facing a deficit, and government is weighing its options to address it… but even as we make tough decisions today, we can’t take our eyes off tomorrow. Research is a key part of the plan for the future” – I agree and would add this research is enabled by a robust, lifelong education system. 

Sincerely,
Morgan Peters, Chief Executive Officer, Fredericton Chamber of Commerce

cc: Hon. Susan Holt, Premier, Province of New Brunswick

cc: Hon. René Legacy, Minister, Finance and Treasury Board

cc: Hon. Luke Randall, Minister, Opportunities NB

cc: Daniel Mills, Deputy Minister, Department of Post-Secondary Education, Training and Labour