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Canada’s grant funding landscape is constantly evolving. Each year, new priorities emerge as governments respond to global pressures, economic needs and innovation opportunities. For founders, the challenge is twofold: keeping up with ever-changing funding programs and aligning company strategy with the areas where dollars are actually flowing.
At Thin Air Labs, our Funding Catalyst team works closely with innovative companies across the country, navigating hundreds of active programs and billions in available non-dilutive funding. Based on early signals, budget commitments, and conversations happening at the federal, provincial and municipal levels, we’ve identified the top three sectors we expect to lead grant funding in 2026:
- Defence
- Housing & Construction Innovation
- Clean Technology
We’re also watching two emerging categories, Applied AI and AgTech, that are increasingly attracting attention and may see strengthened support in 2026.
Defence Innovation
After years of underinvestment, Canada is shifting its stance on defence and national security. With new geopolitical pressures and commitments to NATO spending targets, we expect a significant upswing in grant opportunities aimed at strengthening domestic capabilities and not just for traditional defence contractors, but for innovative tech companies more broadly.
What we’re seeing:
- PrairiesCan and other regional agencies have already begun introducing programs aimed at dual-use technologies, solutions that have both civilian and defence applications
- Increased emphasis on supply-chain security, cybersecurity, advanced manufacturing, and autonomous systems
- Modernizing defence infrastructure and equipment, opening opportunities for deep-tech, hardware, robotics, and companies specializing in analysis and collection of data
Housing & Construction Innovation
Canada’s housing crisis continues to drive government intervention. In 2026, we expect grant dollars to support companies that can meaningfully accelerate construction, reduce costs or increase housing supply.
What we’re seeing:
- Funding for advanced manufacturing processes tied to building systems like prefabrication, modular construction, automated material processing
- Support for companies improving productivity, efficiency, or labour capacity in construction
- Grant programs targeting clean building materials, energy-efficient retrofits, and technologies that help reduce environmental impact in the built environment
- Increased interest in software platforms solving permitting bottlenecks or workflow inefficiencies
Clean Tech
Clean technology continues to be a focus for all levels of government investment. With global pressures to reduce emissions and unlock resilient energy systems, we anticipate clean-tech grants to remain among the most abundant and highest-value opportunities in 2026.
What we’re seeing as funding focus areas:
- Hydrogen as a future energy source
- Carbon capture, utilization and storage (CCUS)
- Battery technologies and critical minerals
- Mining innovation tied to low-carbon processes
- Emissions-reducing technologies across industrial and transportation sectors
- Water tech, waste-to-value solutions, and clean manufacturing
Other Funding Focus Areas to Watch
Applied AI
Governments are moving quickly to define responsible AI strategies, and we expect new programs to support adoption, commercialization, and safety-focused AI initiatives particularly in healthcare, productivity and industrial use-cases.
AgTech
With food security becoming a global priority, we anticipate grants for innovations in precision agriculture, water use, drought resilience, and protein production.
Looking Ahead
2026 will bring significant opportunity and also complexity. Many programs are competitive, some open for short windows, with most requiring strategic planning to ensure the best chance of submitting a successful application.
Thin Air Labs’ Funding Catalyst team has helped companies across North America secure more than 85 million dollars in non-dilutive capital to fuel their growth. To learn more about how founders are submitting successful applications with the help of our Funding Catalyst team, explore our Case Studies or connect with us.
