Understanding the Government’s $30M Penalty

Last updated: September 3, 2026

LaSalle College had filed, on August 24, before the Superior Court, Commercial Division, an application under the Companies' Creditors Arrangement Act (CCAA) to begin a restructuring process, following a disproportionate government penalty of $30 million.

On September 3, 2026, the Honourable Justice Martin Castonguay rendered his decision and ordered the full disbursement of the subsidies provided for in the initial 2026-2027 allocation. This decision lifts the uncertainty that had weighed on the College community since classes were suspended on August 27.

Classes resume starting Friday, September 4, 2026, for the approximately 3,000 students and 421 teachers and staff members at the Montreal and Laval campuses.

The $30 million penalty imposed on LaSalle College followed an administrative imbalance in the distribution of English-speaking students between our AEC and DEC programs

However, all of these students were legally admitted with the required government authorizations.

The College had requested two years to adjust. That is exactly what it needed, since by the fall of 2025, the College was able to comply with the imposed caps. 

LaSalle College has always been a loyal partner of the Québec government, contributing to the education of thousands of young Quebecers. Today, this long-standing partner is facing a disproportionate penalty. 

In fact, the penalty is more than 1,000 times the fines imposed on companies found guilty of fraud, collusion, or actual environmental violations (e.g., in July 2025, Northvolt received a small $10,000 fine for failing to comply with metal limits in stormwater runoff). 

Rather than receiving support during a period of transition, the College finds itself abandoned by the very organization with which it has collaborated for more than 67 years. 

Since May 2021, LaSalle College has:

• Actively participated in the democratic debate surrounding Bill 96 (which became Act 14).
• Alerted the government as early as August 2021 that a rapid implementation of the caps would create significant difficulties, recommending a two-year transition period, given the length of its admissions cycle.
• Received the new cap in February 2023, to be implemented starting in the fall of 2023. At that time, recruitment was well underway, and more than 700 Quebec Acceptance Certificates had already been issued to international students. 
• The ministry has noted that the ACS programs have exceeded their quotas. However, the college remains below its DCS quota, and the overall number of English-language students has not increased since 2019. 
• Received two separate penalties: $8,781,740 on June 28, 2024, and $21,113,864 on June 30, 2025; both are listed as liabilities on the balance sheet, significantly impacting financial performance. 
• Has made numerous representations to the Minister of Higher Education, Ms. Pascale Déry, as well as to Premier Legault’s office and, since 2026, to Premier Fréchette.
• Officially challenged the government’s decision in court to protect its rights before the deadline for filing a challenge expired in July 2024.
• Received indirect support from Judge Éric Dufour, who, in a similar case (McGill and Concordia), denounced government decisions as “unreasonable” and not based on compelling evidence. 
• Submitted several proposals to resolve the situation; none of them received a satisfactory response.
• Has sought protection, as of August 24, 2026, under the Companies’ Creditors Arrangement Act (CCAA) and is appealing to Premier Fréchette. The application was granted by the court, with a deadline of September 3, 2026.
• Following the ruling issued on September 3, 2026 by the Honourable Justice Martin Castonguay of the Quebec Superior Court, Commercial Division, LaSalle College confirms that its 3,000 students, along with its 421 teachers and staff members, will resume classes starting Friday, September 4, 2026.

The total number of English-speaking students has not increased since 2019. This is not a matter of volume, but of the administrative breakdown between two types of diplomas (Attestation of College Studies (ACS) vs. Diploma of College Studies (DCS)).

It is also important to note that following the pandemic, LaSalle College increased enrollment in certain ACS programs to meet professional retraining and workforce needs as part of the Québec government's “Operation Workforce” initiative launched in December 2021.

A Diploma of College Studies (DCS) is generally earned after two or three years of college study and can lead to university or directly prepare students for a trade. An Attestation of College Studies (ACS) is a shorter technical program, often intended for adults who wish to improve their skills, retrain, or enter the job market quickly.

Nevertheless, the government has imposed a disproportionate penalty, threatening an institution founded in 1959 with a 67-year track record of commitment to higher education, both here and in 10 other countries.

Classes resume on September 4, 2026, according to the regular schedule.

The financial impact of the $30 million penalty is putting the future of LaSalle College, as well as that of 3,000 students and 421 faculty and staff members, at risk.

For more information about the start of the academic year, the College encourages students and staff members to monitor their email inboxes for priority operational communications regarding the 2026 academic year, or to consult this page.

To stay informed about the progress of the request made to the CCAA, please visit Deloitte's website, the monitor appointed in the proceedings.