Federal Budget Pledges $100 Million to Help Municipalities Use AI for Faster Housing Approvals
The 2026 federal budget introduces a $100 million fund to help Canadian municipalities adopt artificial intelligence tools for housing approvals. Halifax Mayor Andy Fillmore welcomed the initiative, noting it could boost staff productivity without replacing employees, while citing Edmonton's success in cutting approval times from two weeks to one day.
The 2026 federal budget has announced a $100 million fund designed to help Canadian municipalities adopt artificial intelligence tools to make housing review and approval processes more efficient.
Halifax Mayor Andy Fillmore welcomed the initiative, stating that the funding will help city staff become more productive and process more approvals and permits. He confirmed that the municipality does not plan to replace or cut back on the number of employees as a result of the new funding. However, the federal budget does not specify how much money Halifax will receive or exactly how municipalities should use the funds.
Fillmore expressed interest in learning about Edmonton's approach to the technology and is considering developing an in-house AI tool with the funding. The federal budget highlights Edmonton as a successful example, noting that the city used AI tools to reduce housing approval times from two weeks to one day. By comparison, the Halifax Regional Municipality's website currently estimates it takes 24 days to obtain a permit for a new single-detached dwelling.
Tim Tierney, president of the Federation of Canadian Municipalities, noted that many municipalities are criticized for slow housing approvals. He added that these delays are often due to municipalities being too small rather than being at fault.
Halifax does not currently have its own AI policy, but the availability of this federal funding could motivate the city to create one.