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LaSalle College Classes to Resume Amidst Ongoing Dispute With Quebec Government

Court ruling allows funding and start of school year as parties continue to negotiate penalties over English-language enrolment

September 4, 2026
LaSalle College Classes to Resume Amidst Ongoing Dispute With Quebec Government

LaSalle College, a private, subsidized post-secondary institution in Montreal, will resume classes on Friday following a Quebec Superior Court decision that temporarily resolves a dispute with the provincial government over English-language student enrolment and associated financial penalties. The announcement was made by LaSalle College director Claude Marchand outside the courthouse after a six-hour hearing on Thursday.

The dispute began when the Quebec government fined LaSalle College $30 million for allegedly enrolling more students in its English-language programs than permitted between 2023 and 2025. The Coalition Avenir Québec (CAQ) government had imposed enrolment quotas in 2023, and in July 2025, the college was accused of exceeding its limit by 716 English-speaking students during the 2023-2024 academic year and by an additional 1,066 students for 2024-2025. As a result, the provincial Education Ministry sought to recover $8,781,740 in subsidies paid to the college for 2023-2024 and $21,113,864 for 2024-2025.

In addition to the $29.9 million in fines for over-enrolment, the Quebec government demanded the repayment of $17.9 million in subsidies for the 2025-26 academic year. This brought the total amount the school owes the province to just under $48 million.

The financial penalties and the withholding of annual government grants, which ordinarily total $31 million, led LaSalle College to file for creditor protection in late August. The college was initially granted a 10-day window of protection, which was extended on Thursday. The uncertainty surrounding the institution’s financial situation resulted in the suspension of classes, originally scheduled to begin on August 27, affecting approximately 3,000 students.

The court hearing concluded with Justice Martin Castonguay ruling that LaSalle College would receive its subsidies for the 2026-2027 school year, allowing classes to proceed as normal for that period. The judge emphasized during proceedings that political decisions of this nature have tangible consequences on individuals, in this case, the students and staff. He further remarked that it was unreasonable to expect the college to pay a $30 million fine within a 10-day period.

Marchand described the court's decision as a significant relief for the LaSalle College community, stating, “It’s back to school tomorrow for our students and our teachers, to do what we do best.” He noted that with the release of subsidies, the institution could now begin the academic year, but also acknowledged that the underlying financial dispute remains unresolved.

The ruling provides both the college and the provincial government with an academic year to negotiate a resolution over the penalties. Marchand indicated that discussions with government representatives would continue promptly, saying, “We’ll be back on Teams tomorrow morning to try to reach a settlement as soon as we can to really close that loop,” and expressing determination not to delay the process until December.

Students and staff had previously demonstrated, urging the Education Ministry to ensure the institution could remain open. Some students expressed concerns about being used "like a bargaining chip" in the ongoing conflict between the college and the government.

Marchand highlighted the history of the institution, which has operated for 67 years, and stated his intention to prevent its closure, remarking, “That’s not under my watch that that college will close.” He also suggested that the outcome of upcoming provincial elections scheduled for October 5 could influence the negotiations, noting, “Let’s see which government gets elected on October 5. Will we have to negotiate with the same people?”

Justice Castonguay’s comments in court, described by Marchand as “quite blunt,” focused on the real-world impact of the penalties and the need for a solution that considers the interests of students and staff. The judge advised both parties that a decision was necessary for all involved.

Coalition Avenir Québec leader Christine Fréchette, speaking after an unrelated event at Mount Orford, stated that she and her team would take the time to analyze the judgment and would follow up accordingly: “I have taken note of the judge’s decision, so we will follow up on it, that’s for sure.”

The dispute between LaSalle College and the provincial government is rooted in Quebec’s broader language policies, which seek to limit the number of students in English-language programs as part of efforts to promote and protect the French language. Subsidized private colleges, such as LaSalle, are subject to these enrolment caps, with government funding contingent on compliance.

With classes set to resume and funding temporarily secured, the focus now shifts to ongoing negotiations and the potential for political changes that could affect the outcome. The court’s intervention has provided LaSalle College with operational stability for the current academic year, but the long-term resolution of the financial and policy dispute remains pending.