Details on transfer payment programs

Table of contents

• Contributions in Support of the Capital Assistance Program (CAP)
• Contributions in Support of the Military Training and Cooperation Program (MTCP)
• Contributions in Support of the Remediation of former Mid-Canada Line radar sites in Quebec
• Contributions in Support of the Remediation of the North Bay Jack Garland Airport Site
• Contributions to the Biological and Chemical Defence Review Committee (BCDRC)
• Contributions to the Civil Air Search and Rescue Association (CASARA)
• Funding of Temporary Water Treatment Units for the City of Saguenay
• Grant and Contribution of the Indigenous Reconciliation Program (IRP)
• Grant in Support of the Community Support for Sexual Misconduct Survivors Program (SMSP)
• Grant in Support of the Compensation for Employers of Reservists Program (CERP)
• Grant Program to the National Offices of the Cadet Leagues of Canada, as: Navy League of Canada; Army Cadet League of Canada Air Cadet League of Canada
• Innovation for Defence Excellence and Security (IDEaS) Grants and Contribution Program
• Mobilizing Insights in Defence and Security (MINDS) Program
• North Atlantic Treaty Organization Contribution Program: NATO Military Budget
• North Atlantic Treaty Organization Contribution Program: NATO Other Activities
• North Atlantic Treaty Organization Contribution Program: NATO Security Investment Program
• Payments under Parts I-IV of the Defence Services Pension Continuation Act (R.S., 1970 c. D-3)
• Payments under the Supplementary Retirement Benefits Act

Contributions in Support of the Capital Assistance Program (CAP)

Start date: 1983-84

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2011-12

Link to departmental result(s):

• Naval and Army Bases, Air Force Wings enable military operations and defence activities
• Defence infrastructure is well-managed throughout its lifecycle

Link to the department's program inventory: Defence Infrastructure Program Management

Purpose and objectives of transfer payment program:

The Department of National Defence (DND) utilizes the CAP to optimize its infrastructure by seeking cost-effective solutions with eligible recipients who have the mandate and capacity to operate and maintain the infrastructure and who may also benefit from joint use opportunities.

Contributions are made to:

• Upgrade infrastructure after it has been transferred from DND to the eligible recipient (e.g., roads, sidewalks, and sewers for residential quarters; water treatment plants and water distribution systems that serve operational and non-operational requirements);
• Expand and/or upgrade existing local infrastructure to better support DND requirements (e.g., water treatment plants, water distribution systems, airport runway extensions, roads); and/or
• Construct new local infrastructure, such as:
  • Community-oriented facilities for shared-use by the Base/Wing and local authorities (e.g., arenas, gymnasiums, swimming pools, community centres);
  • Infrastructure to support non-operational requirements such as residential accommodation (e.g., roads, sidewalks, sewers); and
  • Infrastructure to support operational requirements (e.g., new access to the Base/Wing).

Results achieved:

• Collaborating with local authorities to upgrade/expand/construct and own and operate public infrastructure and services that DND requires;
• Reducing DND non-core infrastructure, minimizing DND liability and reducing future operating and capital costs by transferring the responsibility of municipal infrastructure to local municipalities;
• Improved/new/maintained infrastructure for use by DND members and their families;
• Supporting DND's operational requirements by contributing to the optimization of municipal infrastructure in use by DND's evolving force structure; and
• Enhancing the quality of life in the Canadian Armed Forces (CAF).

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25: Assistant Deputy Minister (Review Services) evaluated CAP in 2024-25, complying with the Treasury Board Secretariat Policy on Results and the Financial Administration Act. As DND's sole infrastructure contribution program, it is achieving its intermediate outcomes but is limited by baseline and funding levels.

To better measure impact and advance objectives, CAP needs improved performance measurement data that includes estimated cost savings. Recommendations suggest better integration with real property planning, enhanced project guidance, improved coordination of stakeholder activities, refined recipient reporting requirements, and more thorough cost-benefit analysis from applicants.

Engagement of applicants and recipients in 2024–25:

A two-step contribution agreement is used to facilitate and encourage recipients to engage early in the process as DND can now transfer funds at the design stage via a first contribution agreement. Once the design and any other aspects (e.g., asset transfer) are agreed upon, a second contribution agreement can be signed with the recipient and the project can be implemented.

Explanation of variances:

CAP received $38,650,000 from the Main Estimates and expected an additional $9,464,000 through Supplementary Estimates (C). As the Supplementary Estimates (C) did not occur, DND reallocated surplus funds from other programs, however, the program was unable to secure a contribution agreement in due time for the full amount.

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Contributions in Support of the Military Training and Cooperation Program (MTCP)

Start date: 1992-93

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2022-23

Link to departmental result(s): Canadian Armed Forces contribute to a more stable and peaceful world

Link to the department's program inventory:

• International Operations
• Global Engagement

Purpose and objectives of transfer payment program:

The mandate of the MTCP is to provide military training, education, support and capacity building to developing, non-North Atlantic Treaty Organization (NATO) member countries, with the objectives of:

• Enhancing bilateral and multilateral cooperation;
• Capacity and interoperability;
• Expanding and reinforcing Canadian bilateral defence relations;
• Promoting democratic principles, the rule of law and the protection of human rights; and
• Achieving influence in areas of strategic interest to Canada.

Results achieved:

During 2024-25, the MTCP successfully delivered against its expanded mandate and objectives, which were approved in December 2022, which included:

• Trained nearly 1,300 candidates from 60 strategically relevant countries;
• Provided $13.8 million of international capacity building support under the Indo-Pacific Strategy, Operation PRESENCE, and Operation UNIFIER, in key areas like equipment donations, defence institution building, women, and security and peace support operations training; and
• Committed $1.18 billion of military assistance and equipment donations to Ukraine.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

The internal MTCP annual assessment for 2024-25 will be finalized by fall 2025.

Engagement of applicants and recipients in 2024–25:

The program's beneficiaries are MTCP member countries approved by the Government of Canada that are not members of NATO. Program objectives are delivered by Canadian Defence Attaché (CDA) offices, which transmit training offers and assist them with candidate submissions, training requests, travel bookings, etc.

Engagement with applicants and recipients was conducted through governance mechanisms such as the MTCP Project Assessment Boards.

Explanation of variances:

The program recorded gains in foreign exchange rates; however, the limited timeframe hindered the ability to plan spending.

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Contributions in Support of the Remediation of former Mid-Canada Line radar sites in Quebec

Start date: 2023-24

End date: 2029-30

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2022-23

Link to departmental result(s): Defence activities are carried out in a safe and environmentally responsible manner

Link to the department's program inventory: Environmental Sustainability and Protection

Purpose and objectives of transfer payment program:

The purpose of the program is to provide funding to the Government of Quebec for the remediation of environmental contamination at the former Mid-Canada Line radar sites in Quebec.

Results achieved:

In 2024-25, the Government of Quebec initiated project planning activities and an ecological study to support future remediation efforts.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The program is governed by Environment and Climate Change Canada's (ECCC) Federal Contaminated Sites Action Plan Secretariat. ECCC's Audit and Evaluation Branch is responsible for reviews of the Policy Framework for Shared-Responsibility Contaminated Sites Project Funding, in accordance with section 42.1 of the Financial Administration Act or with the Treasury Board Policy on Results.

Engagement of applicants and recipients in 2024–25:

Once remediation work is underway, DND and the province of Quebec will establish a monitoring committee to monitor the implementation of the contribution agreement. The monitoring committee will meet at least once per year.

Explanation of variances:

The variance in spending is due to delays in initiating remediation work at sites eligible for this funding. The Government of Quebec has prioritized work at other, ineligible sites, and plans to apply lessons learned from those projects to the sites covered by this funding.

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Contributions in Support of the Remediation of the North Bay Jack Garland Airport Site

Start date: 2021-22

End date: 2026-27

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2024-25

Link to departmental result(s): Defence activities are carried out in a safe and environmentally responsible manner

Link to the department's program inventory: Environmental Sustainability and Protection

Purpose and objectives of transfer payment program:

The program provides funding to the City of North Bay for the remediation of per- and polyfluoroalkyl substances (PFAS) at the North Bay airport lands. This agreement was established under the Policy Framework for Shared-Responsibility Contaminated Sites Project Funding.

Results achieved:

In 2024-25, the City of North Bay initiated remediation at the airport, removing over 25,000 tonnes of PFAS-contaminated soil.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The program is governed by Environment and Climate Change Canada's (ECCC) Federal Contaminated Sites Action Plan Secretariat. ECCC's Audit and Evaluation Branch is responsible for reviews of the Policy Framework for Shared-Responsibility Contaminated Sites Project Funding, in accordance with section 42.1 of the Financial Administration Act or with the Treasury Board Policy on Results.

Engagement of applicants and recipients in 2024–25:

DND met every two months in 2024-25 with the City of North Bay, the Ministry of the Environment, Conservation and Parks, and the local health unit.

Explanation of variances:

The variance in spending is due to updates to the forecast following further studies, as well as delays in procurement processes and permit approvals.

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Contributions to the Biological and Chemical Defence Review Committee (BCDRC)

Start date: 1990

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2009-10

Link to departmental result(s): Defence activities are carried out in a safe and environmentally responsible manner

Link to the department's program inventory: Science, Technology, and Innovation

Purpose and objectives of transfer payment program:

To foster public confidence that Canadian Biological and Chemical Defence (BCD) activities are for defensive purposes, to present tangible evidence to the international bodies reinforcing Canada's declarations that its biological and chemical defence programs are for defensive purposes, and to provide independent non-government expert review of the Canadian BCD activities to improve program safety.

Results achieved:

Publication of the BCDRC 2023-24 Annual Report was submitted to the Minister of National Defence for approval and was published in fiscal year 2024-25, which reported the following results:

• Canada's policy of maintaining a purely defensive biological and chemical warfare capability is fully respected by the Department of National Defence and the Canadian Armed Forces (DND/CAF);
• The BCD research, development and training activities undertaken by DND/CAF are fully compliant with Canada's obligations as a State Party to the Biological and Toxin Weapons Convention (BTWC) and the Chemical Weapons Convention (CWC);
• The BCD research, development and training activities undertaken by DND and the CAF pose minimal risk to public safety or the environment;
• While there is always room for improvement, the BCD program is conducted in a professional manner; and
• There is no covertness or duplicity within the BCD program.

Findings of audits completed in 2024–25: The recipient audit report for 2024-25 indicates that Canada's policy of maintaining a purely defensive biological and chemical warfare capability is fully respected by the DND/CAF. It also affirms the BCD research, development, and training activities conducted by the department are compliant with Canada's obligations as a State Party to the BTWC and to the CWC, and, as observed by the Committee, these activities pose minimal risk to public safety or the environment.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Explanation of variances:

No variance.

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Contributions to the Civil Air Search and Rescue Association (CASARA)

Start date: 1989

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2023-24

Link to departmental result(s): People in distress receive effective search and rescue response

Link to the department's program inventory: Operations in Canada

Purpose and objectives of transfer payment program:

To prepare and train CASARA volunteers in the fundamental techniques required to assist in Search and Rescue (SAR) response activities, to maintain the National Organization, and to interact with members of the general aviation community for the purpose of SAR awareness.

Results achieved:

CASARA has independently recruited, organized, administered, and trained its civilian membership while engaging private sector air operators to continue providing capable and reliable air search resources. In 2024–25, CASARA advanced several SAR initiatives and capabilities, optimizing the use of limited SAR resources for the Royal Canadian Air Force (RCAF) while maintaining responsiveness, safety, and quality of service.

Total CASARA-assisted and/or CASARA-led tasks in 2024-25 included:

• 135 aircraft and ground vehicle tasks;
• Engagement with 1,996 total members;
• Involvement of 267 aircraft;
• Involvement of 65 Remotely Piloted Aircraft System (RPAS); and
• A total of 144,723 volunteer hours were completed.

CASARA's progress reflects its commitment to modernization, operational readiness, and partnership with the RCAF and other SAR stakeholders. The organization continues to evolve as a critical component of Canada's SAR ecosystem.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Explanation of variances:

No variance.

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Funding of Temporary Water Treatment Units for the City of Saguenay

Start date: 2023-24

End date: 2027-28

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2024-25

Link to departmental result(s): Defence activities are carried out in a safe and environmentally responsible manner

Link to the department's program inventory: Environmental Sustainability and Protection

Purpose and objectives of transfer payment program:

The purpose of the program is for Canada to provide a financial contribution to the City of Saguenay for the installation and operation of temporary treatment units at La Baie's drinking water production facilities.

Results achieved:

Municipal drinking water treatment continued throughout 2024-25, and homes with affected private wells were successfully connected to the municipal network.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The program is governed by Environment and Climate Change Canada's (ECCC) Federal Contaminated Sites Action Plan Secretariat. ECCC's Audit and Evaluation Branch is responsible for reviews of the Policy Framework for Shared-Responsibility Contaminated Sites Project Funding, in accordance with section 42.1 of the Financial Administration Act or with the Treasury Board Policy on Results.

Engagement of applicants and recipients in 2024–25:

In 2024-25, DND met with the City of Saguenay every two weeks to discuss the risk management efforts.

Explanation of variances:

The variance in spending is due to delays in conducting studies for a long-term solution and in site restoration following the connection of homes with private wells to the municipal network. These activities are now scheduled for 2025-26.

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Grant and Contribution of the Indigenous Reconciliation Program (IRP)

Start date: 2023-24

End date: 2026-27

Type of transfer payment: Grant and Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2022-23

Link to departmental result(s): The Defence team reflects the values and diversity of Canadian society

Link to the department's program inventory: Indigenous Affairs

Purpose and objectives of transfer payment program:

To support the alignment of Department of National Defence and the Canadian Armed Forces (DND/CAF) operations and engagements with United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and with wider reconciliation goals. The IRP's key objectives are to:

• Engage with Indigenous peoples and their communities and representative organizations to identify joint priorities, co-develop and monitor DND's legislative and policy agendas related to the UNDRIP;
• Improve information sharing between Indigenous peoples and their communities and representative organizations;
• Participate in consensus-building, co-development and co-management activities and projects;
• Help Indigenous communities plan for, provide feedback on, and participate in engagement processes, of a specific project;
• Provide Indigenous groups with a broader understanding of the government's intentions in the implementation of UNDRIP; and
• Support the inclusion of diverse Indigenous voices including women, elders, youth, 2SLGBTQQIA+, and persons with disabilities in consultation and cooperation activities with DND.

Results achieved:

The IRP funded 26 recipients in 2024-25. $1.5 million was distributed to First Nations, Inuit, and Métis organizations which:

• Supported engagement, collaboration and co-development on matters of DND's legislative and policy agendas related to the UNDRIP;
• Improved information sharing between Indigenous peoples and their communities and representative organizations;
• Participated in consensus-building, co-development and co-management activities and projects;
• Supported feedback and planning from Indigenous communities in engagement processes;
• Provided Indigenous groups with a broader understanding of the government's intentions in the implementation of UNDRIP; and
• Supported the inclusion of diverse Indigenous voices in consultation and cooperation activities with DND.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

The IRP has met and continues to meet with Indigenous partners to inform them of potential funding opportunities via the IRP as part of Director General Indigenous Affairs Outreach Strategy.

Explanation of variances:

The variance is minor. The program is progressing as planned.

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Grant in Support of the Community Support for Sexual Misconduct Survivors Program (SMSP)

Start date: 2022-23

End date: Ongoing

Type of transfer payment: Grant

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2021-22

Link to departmental result(s):

• The health and well-being of the Defence Team is well supported
• Military families are supported and resilient

Link to the department's program inventory:

• Total Health Care
• Defence Team Management

Purpose and objectives of transfer payment program:

The purpose of the grant program is to increase access to support services across Canada for those impacted by sexual misconduct in the Canadian Armed Forces (CAF); through the provision of financial support to community-based service providers, including sexual assault centres.

The objectives are to increase the range of services available for survivors of sexual misconduct in the wider CAF community; and increase the collaboration between community-based and CAF service providers.

Results achieved:

In 2024-25, a third Call for Applications was launched; its goal was to complement the existing recipients to support a reach across Canada, in line with the objective of reaching traditionally underserved and remote communities. As of spring 2025, applications are under review; results are expected to be finalized by summer 2025.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

The grant program team conducted extensive outreach efforts and activities throughout the summer of 2024, including multiple e-blasts and email communication to prospective applicants. The team also hosted a Knowledge Sharing Session in March 2025 amongst existing recipients to share ongoing project progress and impacts resulting from the program. Identification of recipients will be completed in the summer of 2025.

Upon the identification of recipients, the grant program team will host multiple presentations on the reporting requirements, provide many tools and templates to facilitate the administration component of their funded projects and will share updates on programs and services. The grant program team will also host an onboarding session to familiarize them with the Sexual Misconduct Support and Resource Centre services and programs and general information about the Department of National Defence, the Canadian Armed Forces, and sexual misconduct.

Explanation of variances:

No variance.

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Grant in Support of the Compensation for Employers of Reservists Program (CERP)

Start date: 2014

End date: Ongoing

Type of transfer payment: Grant

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2022-23

Link to departmental result(s): Canadian Armed Forces are ready to conduct concurrent operations

Link to the department's program inventory: The Employer Support Programmes

Purpose and objectives of transfer payment program:

To maintain the federal financial assistance that compensates civilian employers, builds bridges with businesses and other stakeholders, and ensures that reservists continue to be fully integrated and readily available for military duty (which includes both Deployment on Named Operations as well as Military Skills Training). Note that Employment and Social Development Canada (ESDC) is a delivery partner of the CERP program.

Results achieved:

Expanded eligibility came into effect on 1 April 2023, to include military skills training of over thirty days, such as career development training, the increased participation of recipients is anticipated to steadily increase.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

Ongoing engagement is completed through ESDC and not DND.

Explanation of variances:

There is a variance due to less applicants in 2024-25 based on unpredictable operational and training requirements.

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Grant Program to the National Offices of the Cadet Leagues of Canada, as: Navy League of Canada; Army Cadet League of Canada Air Cadet League of Canada

Start date: 1949

End date: Ongoing

Type of transfer payment: Grant

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2013-14

Link to departmental result(s): Youth in Canada are provided with experience and opportunities that enable a successful transition to adulthood

Link to the department's program inventory: Cadets and Junior Canadian Rangers (Youth Program)

Purpose and objectives of transfer payment program:

To provide support to the Cadet Leagues through a grant to each of the three National Offices (Navy League, Army Cadet League and Air Cadet League) to permit the Cadet Leagues to concentrate their efforts on attracting and developing an extensive volunteer network in support of the Cadet Movement.

Results achieved:

The Cadet Leagues have participated in the mutually agreed consultative framework through attendance and participation in national forums, such as the National Cadet Council, regional forums, such as the Regional Cadet Advisory Groups, and community level forums, such as the Community Coordination Committees.

The Cadet Leagues have also actively participated in the League Support Working Group which aims to review and account for League resources and related performance measurement, at the local, Provincial and National levels to provide the National Cadets Steering Committee with recommendations with regards to the Leagues' responsibilities agreed upon in the Memorandum of Understanding between the Canadian Armed Forces (CAF) and the Cadet Leagues, which includes the development of a volunteer network to support local committees.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

CAF continued to engage the Cadet Leagues through its formalized Memorandum of Understanding (MOU) and related Consultative Framework.

Explanation of variances:

No variance.

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Innovation for Defence Excellence and Security (IDEaS) Grants and Contribution Program

Start date: 2017-18

End date: 2036-37

Type of transfer payment: Grant and Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2017-18

Link to departmental result(s): Defence and security challenges are addressed through innovative solutions

Link to the department's program inventory: Science, Technology, and Innovation

Purpose and objectives of transfer payment program:

IDEaS supports the Science and Technology community to generate new ideas and formulate solutions to Canada's current and future defence and security requirements. Contributions fund successful proposals from not-for profit, academia and government recipients, and fund successful Technology Readiness Level proposals from for-profit organizations. Grants fund prizes to IDEaS contest winners.

Results achieved:

The program achieved the following results in 2024-25:

• Selected five projects of up to $1 million each for funding under the Challenge: Safer Passage during Minefield Breaching Operations in Ukraine;
• Received 51 proposals for the Fast Forward: Forecasting Global Emerging Threats contest with 10 projects selected for further development of forecasting and machine generated explanations;
• $4 million has been awarded to the two recipients under the Challenge: Robot Round-up: Advanced Robotics Platforms and Control Solutions to support further advancements in pushing the limits of robotic autonomy for defence;
• Selected five projects of up to $2 million each under Canadian Safety and Security Program call for proposals for Innovation Networks Challenge: Lighting the Path with AI;
• Hosted the Counter-Unmanned Aerial Systems (CUAS) Sandbox 2024, including participation of approximately 15 Canadian organizations; and concluding with three participants being awarded prize funding;
• Selected 12 recipients under the CUAS Concept Development Challenge providing up to $500,000 to advance concepts over 9 months;
• Several research and development projects were funded as well; and
• Used North American Aerospace Defense Command (NORAD) Modernization Science and Technology funding, provided funds to 6 projects for their year two of four-year agreements under the Innovation Networks Challenge: Preparing for a Quantum World.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

The formal evaluation conducted by Assistant Deputy Minister (Review Services) in 2022-23 yielded recommendations to explore the benefits of increasing the Transfer Payment Program. In 2023-24, IDEaS implemented some new approaches to Vote 10, advancing projects in new ways to test different investment models. IDEaS' new methods to optimize the use of Vote 10 funding led to increased spending, and for the first time, the IDEaS Vote 10 budget was almost fully utilized. For fiscal year 2025-26, the full IDEaS and NORAD Modernization Science and Technology Vote 10 funding is committed.

Engagement of applicants and recipients in 2024–25:

The program continued with established multi-year projects and engaged applicants, as well as recipients, for the above noted challenges. The program also made a continued effort to gather feedback from recipients that worked with IDEaS during previous challenges. That feedback continues to help inform some of the refinements being implemented.

Explanation of variances:

The IDEaS team developed, launched, evaluated, and selected projects to fund 19 $1 million prizes through the NORAD Modernization science and technology initiative. Due to delays in agreement signatures, this planned spending will now be charged to the 2025-26 appropriation. Additionally, applicants selected to participate in contests were lower than expected, therefore the grant funding was not fully utilized.

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Mobilizing Insights in Defence and Security (MINDS) Program

Start date: 2018-19

End date: Ongoing

Type of transfer payment: Grant and Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2018-19

Link to departmental result(s): Defence and security challenges are addressed through innovative solutions

Link to the department's program inventory: Science, Technology, and Innovation

Purpose and objectives of transfer payment program:

MINDS enables opportunities for collaboration between the Defence Team and the external defence and security expert community through a program that:

• Responds to the need for relevant and timely advice from defence and security experts;
• Fosters the next generation of experts and scholars; and
• Contributes to Canadians understanding of defence and security issues.

Results achieved:

Responded to the need for relevant and timely advice from defence and security experts:

• Awarded 67 grants for various defence and security projects; and
• Supported nine collaborative networks.

Fostered the next generation of experts through the Young MINDS Grants which are open to undergraduate and master's students, young and new scholars and scholarship funding:

• Supported students, young and new scholars by awarding 12 scholarships and scholarship supplements in partnership with the Social Sciences and Humanities Research Council.

Contributed to public understanding on defence/security issues:

• 94% of projects funded in 2024-25 included plans for online/hybrid/in-person events or research accessible to the public; and
• 91% of funded projects have plans to disseminate information/results of projects on social media.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25: There were no evaluations completed in 2024-25.

Engagement of applicants and recipients in 2024–25:

The MINDS team is regularly engaged with applicants and recipients of its grants and contributions funding. The MINDS team responded to questions to provide support on the application process. With respect to contribution recipients, each is assigned a liaison on the MINDS team to facilitate integration with Defence Team stakeholders.

Explanation of variances:

The variance is minor. The program is progressing as planned.

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North Atlantic Treaty Organization Contribution Program: NATO Military Budget

Start date: 1949

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2023-24

Link to departmental result(s): Canadians are protected against threats to and attacks on Canada

Link to the department's program inventory: Global Engagement

Purpose and objectives of transfer payment program:

The Department of National Defence and the Canadian Armed Forces (DND/CAF) share of common funding contributions to finance NATO military resources that benefit all Allies and NATO partners.

DND's NATO Military Budget contributions support the operating and maintenance costs of NATO's military headquarters and activities, including:

• International Military Staff;
• NATO's Command Structure, made up of bases and facilities across Europe and in the United States;
• NATO's key air fleets: NATO Airborne Warning and Control System (AWACS), and NATO Intelligence Surveillance & Reconnaissance Force (NISRF);
• NATO operations and missions: including CAF deployments under Operations IMPACT (NATO Mission Iraq), KOBOLD and REASSURANCE.

Results achieved:

Canada's financial contributions to the Alliance continue to ensure Canadian security and provide leverage and influence within the multi-national body. These contributions also provided access to military capabilities that Canada can leverage.

The contributions further served to help protect and strengthen the freedom and security of all Alliance members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The benefits of Canada's investment in NATO included access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability.

Findings of audits completed in 2024–25:

After the NATO calendar year end (Jan-Dec), the annual financial statements are presented for audit to the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is led by officials from six national audit institutions in member countries. The IBAN conducts audits annually on all Military Budget accounts commonly funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Findings of evaluations completed in 2024–25:

The Treasury Board Secretariat (TBS) Policy on Results exempts assessed contributions to international organizations from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Explanation of variances:

Funding for NATO 2030 was established with an ambitious vision. While progress is being made, NATO is focused on continuous capacity building to meet that level of ambition. As a result, the program has required fewer calls for contributions, allowing for a more strategic use of funds as NATO continues to build toward its long-term objectives.

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North Atlantic Treaty Organization Contribution Program: NATO Other Activities

Start date: 1949

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2023-24

Link to departmental result(s): North America is defended against threats and attacks

Link to the department's program inventory: Global Engagement

Purpose and objectives of transfer payment program:

Canada's contributions to NATO's Other Activities finance projects initiated by or completed for NATO. Canada's share of contributions is determined at the start of the activity with other participating nations through a Memorandum of Understanding.

The program provides funding for:

• NATO's Centres of Excellence;
• NATO's Naval Forces Sensor and Weapons Accuracy Check Sites (FORACS);
• NATO's Rapidly Deployable Corps Headquarters; and
• NATO Production and Logistics Organizations (NPLOs).

Results achieved:

Canada's financial contributions to NATO's Other Activities continue to ensure Canadian security and provide leverage and influence within the multi-national body.

The contributions further served to help protect and strengthen the freedom and security of Alliance members.

The benefits of Canada's investment in NATO included access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability.

Findings of audits completed in 2024–25:

The annual financial statements are presented for audit to the International Board of Auditors for NATO (IBAN) or a National Independent Recognized Auditing Organization. The IBAN is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is led by officials from six national audit institutions in member countries. Designated committees, where Canada is well represented, analyzed all the Auditor reports, and made recommendations to the relevant entities to comply with audit findings.

Findings of evaluations completed in 2024–25:

The Treasury Board Secretariat (TBS) Policy on Results exempts assessed contributions to international organizations from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Explanation of variances:

Programs continued to watch closely their expenditures and to exploit efficiencies and find cost savings to remain within their authorized budgets.

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North Atlantic Treaty Organization Contribution Program: NATO Security Investment Program

Start date: 1951

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2023-24

Link to departmental result(s): Canadians are protected against threats to and attacks on Canada

Link to the department's program inventory: Global Engagement

Purpose and objectives of transfer payment program:

The Department of National Defence and the Canadian Armed Forces (DND/CAF) share of common funding contributions to finance NATO military resources that benefit all Allies and NATO partners.

DND's NATO Security Investment Program (NSIP) contributions support the capital costs for major infrastructure improvements, including:

• Airfield, fuel systems and harbor facilities to support deployed forces;
• Air command and control systems;
• Automated information systems; and
• Intelligence, surveillance, and reconnaissance capabilities.

Results achieved:

NSIP continued to fund capital investments that meet NATO's essential purpose: to safeguard the freedom and security of all its members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The benefits of Canada's investment in NATO include access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability. It also includes a potential return on some of Canada's eligible infrastructure projects in support of NATO operations.

Findings of audits completed in 2024–25:

The International Board of Auditors for NATO (IBAN) is an independent entity reporting directly to the North Atlantic Council (NAC), audits projects once they are completed and submitted for audit by the host nations.

The IBAN conducts financial audits on closed NSIP projects when they are presented by the host nation and has conducted performance audits on NSIP governance and capability delivery. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Findings of evaluations completed in 2024–25:

The Treasury Board Secretariat (TBS) Policy on Results exempts assessed contributions to international organizations from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Explanation of variances:

Funding for NATO 2030 was established with an ambitious vision. While progress is being made, NATO is focused on continuous capacity building to meet that level of ambition. As a result, the program has required fewer calls for contributions, allowing for a more strategic use of funds as NATO continues to build toward its long-term objectives.

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Payments under Parts I-IV of the Defence Services Pension Continuation Act (R.S., 1970 c. D-3)

Start date: 1970

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through a Statutory Authority - Parts I-IV of the Defence Services Pension Continuation Act (R.S., 1970 c. D-3)

Fiscal year for terms and conditions: 1970-71

Link to departmental result(s): Military families are supported and resilient

Link to the department's program inventory: Defence Team Management

Purpose and objectives of transfer payment program:

The Defence Services Pension Continuation Act provides for the payment of pensions to certain persons enrolled as members of the Regular Forces before the 1st day of April 1946.

Results achieved:

Timely distribution of payments to eligible recipients under Defence Services Pension Continuation Act.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This is a statutory program under Defence Services Pension Continuation Act and the selection and communication with the recipients are conducted by Public Services and Procurement Canada (PSPC).

Explanation of variances:

The number of annuitants continue to decrease. The program had 19 members in 2024-25.

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Payments under the Supplementary Retirement Benefits Act

Start date: 1982

End date: Ongoing

Type of transfer payment: Contribution

Type of appropriation: Appropriated annually through a Statutory Authority - Supplementary Retirement Benefits Act

Fiscal year for terms and conditions: 1982-83

Link to departmental result(s): Military families are supported and resilient

Link to the department's program inventory: Defence Team Management

Purpose and objectives of transfer payment program:

The Supplementary Retirement Benefits Act provides supplementary retirement benefits for certain persons in receipt of pension payable out of the Consolidated Revenue Fund.

Results achieved:

Timely distribution of payments to eligible recipients under Supplementary Retirement Benefits Act.

Findings of audits completed in 2024–25: There was no audit completed in 2024-25.

Findings of evaluations completed in 2024–25:

There is no planned evaluation. The Treasury Board secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5 million per year from the five-year reviews required under section 42.1 of the Financial Administration Act.

Engagement of applicants and recipients in 2024–25:

This is a statutory program under Supplementary Retirement Benefits Act and the selection and communication with the recipients are conducted by Public Services and Procurement Canada (PSPC).

Explanation of variances:

The number of annuitants continue to decrease. The program had 19 members in 2024-25.

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