1. What is the Strategic Response Fund?
Managed by Innovation, Science and Economic Development Canada (ISED), the Strategic Response Fund (SRF) supports large-scale transformative projects and addresses key market gaps, positioning Canada's industry to compete globally and build lasting resilience. The SRF provides investment in areas of strategic industrial advantage for Canada's long-term economic resilience and industrial future.
The SRF replaces the Strategic Innovation Fund (SIF), building on its mandate of de-risking large-scale innovation and growing domestic AI compute capacity through the AI Compute Challenge, to include an expanded scope to support firms significantly and adversely impacted by U.S. tariffs. The program focuses primarily on projects larger than $20 million, for contributions of $10 million and above, to ensure federal investments drive large-scale impact and meaningful industrial transformation.
2. What projects are eligible under the SRF?
The SRF supports large-scale innovation and technology development, as well as projects that enable Canadian firms to adapt to tariff pressures, diversify markets and drive long-term industrial transformation. The SRF funds activities ranging from early-stage research and development (R&D) and commercialization to large-scale capital investments that modernize production, expand domestic capacity and strengthen Canada's AI ecosystem.
Under the recently announced $5 billion investment, eligible projects will include market diversification initiatives, as well as projects that help companies pivot to meet demand in the Canadian market and accelerate trade exports, and that support capacity-building efforts essential to maintaining Canada's industrial and skills base.
The SRF also supports innovation and technology development projects that advance large-scale R&D, commercialization, technology adoption, expansion, and first-mover projects. The SRF will continue to support innovation projects traditionally funded through the SIF, with existing SIF projects proceeding as per the terms of their agreements.
Projects to build or expand domestic AI compute capacity in Canada—including domestic AI data centres and infrastructure to advance data sovereignty and offer secure and affordable compute access for innovative Canadian companies—will continue to be considered under the AI Compute Challenge.
Firms are encouraged to engage in early consultations with program officials prior to applying to the SRF, to assess eligibility and ensure alignment with program objectives. To determine if you can apply for funding, check your eligibility.
3. What does this mean for an existing project or application under the SIF?
All projects under the SIF will continue to advance as planned under the SRF program. The SRF continues to administer the projects that received SIF funding according to the terms agreed on with each recipient. Any project currently in negotiation or undergoing due diligence will also continue to move through the SIF review process.
If you have a new project and are currently seeking support from the SIF, your project will be assessed under the SRF. The transition to the SRF ensures that all SIF projects remain fully supported, while also creating new opportunities to address emerging issues and align future investments with Canada's broader economic priorities.
To determine if you can apply for funding, check your eligibility.
4. What types of costs are supported by the SRF?
SRF funding is project-based, with a portion of eligible supported project costs (expenditures) being reimbursed. Eligible costs include capital expenditures such as investments in equipment, technology and new or existing facilities. The SRF covers some direct project costs, including materials, equipment and certain overhead expenses that are critical to achieving project outcomes.
In addition, the SRF may support pre-development activities such as front-end engineering and design studies for projects that are focused on retooling and market diversification activities in response to adverse and significant impacts from tariffs.
To determine if you can apply for funding, check your eligibility.
5. How can I apply for SRF funding?
Firms are encouraged to engage in early consultations with program officials prior to applying to assess eligibility and ensure alignment. Firms with eligible proposals are invited to submit a funding request for further consideration. To determine if you can apply for funding, check your eligibility.
6. Who can apply for SRF funding?
The SRF covers all sectors of the economy and is available to for-profit and not-for-profit organizations incorporated in Canada and collaborative projects proposing to carry out business in Canada.
The SRF is broadly open to businesses and partnerships that aim to support domestic competitiveness and Canadian innovation through activities such as growing and transforming industrial capabilities, developing innovative products and technologies, and pivoting to new markets. Companies that have been impacted by U.S. and global tariffs may qualify. To determine if you can apply for funding, check your eligibility.
7. How does the expanded scope differ, and how can I know if I am eligible under the new $5 billion investment?
You may be eligible under the new $5 billion investment if your business operates in a strategic sector highly exposed to tariff impacts—such as steel, aluminum or automotive supply chains—and if your project will help support domestic production, pivot to new markets, protect jobs and strengthen Canada's long-term competitiveness. Priority will be given to projects meeting one or more of the following criteria:
- highly trade-exposed sector or company facing significant revenue loss, decrease in profitability, and/or job losses
- large-scale projects, with both front-end development costs (e.g. front-end engineering design) and capital expenses, to pivot toward alternative markets or products or to enhance competitiveness
- projects that are critical to maintaining industrial or skills capacity and capabilities for Canada's economic and crisis management
- projects that help companies develop their capacity to meet demands in the Canadian market and accelerate trade exports