Ottawa Parliament Building
OTTAWA, Oct. 14, 2026 | The federal government has added $500 million over five years to its Regional Artificial Intelligence Initiative, bringing total federal funding for the program to $700 million, according to HRD Canada. Applications are open now in some regions, with the first deadlines in November.
What Ottawa Announced
The expansion is confirmed on the Innovation, Science and Economic Development Canada program page, which says the money is delivered through Canada’s regional development agencies. They cover Atlantic Canada, Quebec, the North, Northern and Southern Ontario, the Prairies and British Columbia. The program supports three areas: AI adoption by small and medium-sized businesses and not-for-profits, commercialization and scale-up for Canadian AI companies, and regional organizations such as incubators and accelerators.
HRD Canada reports the initiative is part of AI for All, Canada’s National Artificial Intelligence Strategy released in June 2026. FedDev Ontario lists priority sectors as health and life sciences, energy and natural resources, transportation, agriculture, and manufacturing and robotics, and says the program also aims to broaden access for Indigenous Peoples, youth and underrepresented groups. Evan Solomon, the federal Minister of Artificial Intelligence and Digital Innovation, and Sean Fraser, the minister responsible for the Atlantic Canada Opportunities Agency (ACOA), both commented on the announcement.
Deadlines and Who Can Apply
In Atlantic Canada, the call for proposals closes Nov. 20, 2026 at 11:59 p.m. ADT, according to the ACOA program page. Applicants must be small and medium-sized businesses meeting the eligibility rules of the Regional Economic Growth through Innovation program, with projects valued at $1 million or more. ACOA says the funding is repayable. HRD Canada reports the region will receive nearly $40 million of the new money, for more than $55 million in total.
In Southern Ontario, HRD Canada reports applications are open until Jan. 19, 2027. Projects with eligible costs before March 31, 2027 must be submitted by Nov. 24, 2026. FedDev Ontario recently committed more than $1 million to Deep Breathe Inc., a London, Ont. company commercializing an AI-powered lung ultrasound system. Other regions have their own intake dates, and the federal program page says dates may vary and directs applicants to their regional agency’s website.
Frequently Asked Questions
How much federal funding does the Regional AI Initiative now have?
Ottawa added $500 million over five years, bringing total federal funding for the initiative to $700 million, according to the federal program page.
What are the application deadlines?
Atlantic Canada’s call for proposals closes Nov. 20, 2026. Southern Ontario applications are open until Jan. 19, 2027, with an earlier Nov. 24, 2026 cut-off for projects with eligible costs before March 31, 2027, per HRD Canada.