It’s still up in the air how this is going to work. It sounds like the Federal government will allocate a specific quota to each province and then it will be up to the provincial governments to figure out how many each PSE institutions will receive.
To be clear the biggest target of this is intended to be "degree-mill’ type PG Cert programs offered by some of the colleges that have licenced 3rd-party private providers. They mostly target students from India and China who use them as a backdoor to immigration. So far the Ontario government has been mum on all of this which is unsurprising since they’ve been the most egregious in allowing this to continue.
The biggest push behind this is though is the current housing crisis and international students are the easiest targets to throw under the bus in attempt to appease an ever increasingly vocal populace that is demanding government leadership to help rectify housing shortages and affordability. The real problem isn’t international students, it’s the Federal government’s reckless approach to population growth especially the number of temporary foreign workers that are swelling the ranks.