House Standing Committee on National Defence (NDDN): Defence Industrial Strategy (Appearance by the Minister of National Defence) - May 6, 2026

The Five Pillars of the Defence Industrial Strategy (DIS)

1. Renewing our relationship with industry;
2. Procuring strategically through the new Defence Investment Agency and a new “Build-Partner-Buy” framework;
3. Investing purposefully to strengthen an innovative Canadian defence sector;
4. Securing supply chains for key inputs and goods; and
5. Working with domestic partners, including in Canada’s North and Arctic.

Anticipated Benefits of Implementing the Defence Industrial Strategy

• $125 billion downstream economic benefit by 2035;
• Increase of Canada’s defence exports by 50%;
• Raise share of defence acquisitions awarded to Canadian firms to 70%; and
• Rise of maritime fleet serviceability to 75%, land fleets to 80% and aerospace fleets to 85% to bolster Canadian defence.

Key Sovereign Capabilities – 10 priority areas for investment

The Defence Industrial Strategy identifies 10 priority areas for investment to maximize strategic autonomy for capabilities critical to the defence of Canada and where Canada has an existing or potential advantage, these include:

1. Aerospace: Aerospace Platforms, Avionics, and Aircraft Communications
2. Ammunition: Common Ammunition, Battle-Decisive Munitions, Small Arms, Missiles and Bombs
3. Digital Systems Secure Cloud, Artificial Intelligence, Quantum Computing and Communications, Integrated Command, Control and Communications, High-Assurance Communications Equipment
4. In-Service Support: Naval, Land, Air
5. Personnel Protection: Medical Counter Measures
6. Sensors: Marine Sensors, Quantum Sensors, Electronic Warfare
7. Space: Space-Based Intelligence, Surveillance and Reconnaissance, Space Domain Awareness, Satellite Communications, Space Launch
8. Specialized Manufacturing: Land Vehicles / Surface Ships, including Icebreakers and Marine Systems
9. Training and Simulation: Naval, Land, Air
10. Aerospace: Aerospace Platforms, Avionics, and Aircraft Communications
11. Uncrewed and Autonomous Systems: Uncrewed and Autonomous Land, Aerial, Underwater and Surface Systems (including Uncrewed Collaborative Platforms)

• Announced on February 17, 2026, the Defence Industrial Strategy (DIS) is intended to transform Canada’s defence industry by prioritizing Canadian suppliers and materials, investing in Canadian innovation and commercialization, and streamlining procurement to give businesses consistent and predictable demand.
• To procure the equipment and services the Canadian Armed Forces (CAF) and the Canadian Coast Guard (CCG) need, National Defence works closely with partners in other departments such as Public Services and Procurement Canada, the Defence Investment Agency, and Innovation, Science and Economic Development (ISED).
• Canada has an Industrial and Technological Benefits (ITB) policy, managed by ISED, which leverages National Defence and Canadian Coast Guard procurements to contribute to jobs, innovation and economic growth across the country. This policy will be updated in 2026 to align with DIS aims.

The Defence Industrial Role of the Provinces, Territories, and Indigenous Rightsholders

• The Provinces, Territories, and Indigenous (PTI) governments control many of the levers that shape the operating environment for the CAF and the defence industrial base.
• The DIS underscores the importance of PTI collaboration, notably to advance infrastructure, industrial engagement, and workforce development, including through the development of a Canada Defence Skills Agenda.
• Ontario
  • Ontario accounts for more than 35% of Canada’s defence industry employment, with strengths in combat vehicles, airborne sensors and warning systems, munitions, and aircraft manufacturing.
  • The province’s 2025 budget included targeted defence investments, notably a $215 million commitment to shipbuilding.
  • In March 2026, Ontario appointed CAF veteran Bernard Derible as its first Military Defence Representative to promote the province’s defence industry domestically and internationally.
• Québec
  • Quebec represents nearly 25% of Canada’s defence industry employment, with core capabilities in aircraft manufacturing, maintenance, repair and operations (MRO), munitions, and advanced digital technologies, including quantum.
  • The province has designated defence as a priority sector, enabled Investissement Québec to invest in certain defence firms, and established an Interministerial Committee on the Defence of Québec.
• Atlantic Canada
  • Atlantic Canada is home to COVE, aircraft MRO, and space launch.
  • Irving Shipbuilding Inc. in Halifax is a major partner under the National Shipbuilding Strategy.
  • Halifax also hosts the North Atlantic Treaty Organization’s Defence Innovation Accelerator for the North Atlantic (DIANA), and the Centre for Ocean Ventures and Entrepreneurship (COVE), DIANA’s first Maritime Defence Innovation Secure Hub under the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS).
• Western and Northern Canada
  • Western and Northern Canada together account for approximately 20% of Canada’s defence industry employment.
  • Key activities include aircraft and naval MRO, shipbuilding, life sciences, and digital technologies, including quantum.
  • Notable contributors include SkyAlyne (CAE and KF Aerospace) in Manitoba and Saskatchewan, Cascade Aerospace in British Columbia supporting CC‑130 Hercules fleets, and Seaspan Shipyards as a National Shipbuilding Strategy partner.
  • British Columbia and Alberta have both adopted industrial strategies that prioritize defence‑related sectors.
• Indigenous Governments and Rightsholders
  • Indigenous governments and rightsholders are essential partners in building Canada’s defence industrial base, particularly in the North.
  • Alongside provinces and territories, they play a vital constitutional role, especially in natural resource and infrastructure development.
  • The DIS seeks to strengthen Indigenous participation in defence supply chains, infrastructure, and procurement, building on the mandatory minimum 5% Indigenous federal procurement target.
  • The DIS also forecasts an increased Indigenous multiplier through planned ITB policy changes in 2026.

Space Launch: $182.6 million over three years

• The Government of Canada has committed $182.6 million over three years, which began in 2025-26, to establish a sovereign Canadian space-launch capability, reducing dependence on foreign launch providers for critical space access.
• As part of this commitment, the National Defence program for Innovation for Defence Excellence and Security is investing $105 million over three years in the development of responsive light-lift launch systems for small payloads by 2028-29 to accelerate Canadian space-launch-related innovation and to strengthen the foundations needed for future sovereign launch capability.
• Through the first round of this funding, three Canadian companies were awarded $8.3 million each to advance their space rocketry projects.
• This funding will foster Canadian industrial and academic collaboration to develop the launch systems that will support future National Defence space missions.
• Investing in sovereign launch capability now means that Canadians and their businesses can participate in the space economy and reap benefits for decades to come.
• A domestic launch capability also supports national security and strategic autonomy by enabling rapid, reliable access to space for defence, communications, and surveillance without reliance on foreign launch providers.

Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS)

• BOREALIS will accelerate the delivery of Canadian-developed cutting-edge technologies and capabilities to the CAF, the CCG and the Communications Security Establishment (CSE), while serving as the interface for industry and academia to engage and access defence innovation programs.
• Key Features of BOREALIS:
  • Joint Program Office: A cross-departmental implementation team housed within Defence Research and Development Canada at National Defence to lead early delivery;
  • Program Coherence and Alignment: Providing coherence and streamlining access to federal innovation programs to accelerate delivery and align investments;
  • Team Canada Model: Leveraging expertise from across National Defence, CSE, the National Research Council (NRC), ISED, and other departments; and
  • Defence Innovation Secure Hubs (DISH): Co-located classified environments for prototyping, validation, and research and development (R&D).
• Canada’s first DISH: Maritime DISH pilot in Halifax (November 21, 2025)
  • The Maritime DISH will put in place secure infrastructure and other enablers to allow various defence and security partners, including industry, academia, naval and joint operators, and federal departments and agencies, to collaboratively develop, test, and mature advanced maritime technologies.
  • Key areas of focus will include:
    • Undersea domain awareness;
    • Uncrewed and autonomous systems;
    • Advanced sensing and surveillance technologies; and
    • Artificial Intelligence-enabled maritime analytics.
• February 2026 call for proposals to establish two additional DISHs: one focused on uncrewed systems, and one on quantum technology.
• Successful proponents will be announced in spring 2026, with their new hubs expected to be operational within two years and undertaking key R&D activities.
• The BOREALIS team continues to assess other potential DISHs needed to advance defence and security R&D in Canada.

Budget 2025

• $6.6 billion over five years to the initial investments of the DIS to: improve access to capital, drive research and innovation, bolster domestic supply chains, and grow critical resource stockpiles.
• Specific initiatives include:
  • $182.6 million over three years for National Defence to establish a sovereign space launch capability.
  • $68.2 million over three years for National Defence, ISED, NRC, and the CSE to establish BOREALIS.
  • $1 billion in fiscal year 2025-26 to create a new Defence and Security Business Mobilization Program at the Business Development Bank of Canada.
  • $656.9 million over five years, to ISED to develop and commercialize dual civilian‑military technologies.
  • $334.3 million over five years, to ISED, NRC, and the Natural Sciences and Engineering Research Council of Canada for a suite of measures to help anchor quantum technology companies in Canada and provide pathways to technology adoption in defence-related applications and industries.
  • $443 million over five years, to NRC and ISED to support the development of innovative critical minerals processing technologies, support joint investments with allies in Canadian critical minerals projects, and develop a critical mineral stockpiling mechanism to strengthen Canadian and allied national security.

Post-Budget Announcements

• Since the release of Budget 2025, notable investments announced by the Government include:
  • $528.5 million for the European Space Agency to promote Canadian space technology innovation and access to the European market.
  • $244.2 million over three years for NRC to stand up a Defence Industry Assist Program that will provide funding and advice to high-potential, innovative Canadian small and medium-sized enterprises.
  • $379.2 million over three years to the federal Regional Development Agencies for a new Regional Defence Investment Initiative to integrate small and medium-sized enterprises into domestic and international defence supply chains, enhance industrial and innovation capacity, and foster regional economic development.
  • An additional $1.2 billion has been allocated to the Business Development Bank of Canada (BDC) Defence Platform, bringing total BDC funding for the platform to $2.2 billion. This includes the $1 billion announced in Budget 2025, in support of a $4 billion Defence Platform.

2022 Canadian Defence Industry Key Figures^{Footnote 1}

• Generated $14.3 billion in revenues from its more than 585 firms.
• Contributed $9.6 billion in Gross Domestic Product.
• Exported over $7 billion in goods in services, of which close to 70% was to Canada’s Five Eyes partners.
• Firms with fewer than 250 employees represented over 85% of firms in the Canadian defence industry.
• The Canadian defence industry was over three times more R&D intensive than the broader manufacturing sector.

• On March 26, 2026, Prime Minister Carney announced that Canada achieved its North Atlantic Treaty Organization’s (NATO) 2% gross domestic product defence spending target.

Budget 2025

• Budget 2025 provided $81.8 billion over five years on a cash basis, starting in 2025-26, to rebuild, rearm, and reinvest in the Canadian Armed Forces.
• This includes the over $9 billion announced by the Prime Minister in June 2025.

NATO Common-Funded Budget

• In addition to investing in their own armed forces, all NATO Allies contribute directly to NATO’s budget based on an agreed cost-share formula derived from Gross National Income.
• Canada is the 6th largest contributor to NATO’s common-funded budget at approximately 6.6%.

Mains Estimates

• In the 2026–2027 Main Estimates, National Defence is requesting $534.5 million for NATO contribution programs, including the NATO Military Budget, the NATO Security Investment Program, and NATO Other Activities.

Defence Spending – 2% of Gross Domestic Product Target

• In June 2025, the Prime Minister announced over $9 billion in defence investments to position Canada to meet its 2% gross domestic product (GDP) target to the North Atlantic Treaty Organization (NATO).
• Budget 2025 included $81.8 billion over five years on defence, including $17.9 billion to expand military capabilities, and $19 billion to repair and sustain capabilities and invest in defence infrastructure.

Areas of Defence Investment and Notable Initiatives

• Improving serviceability and operational readiness, resulting in higher equipment availability and improved Canadian Armed Forces (CAF) readiness. This includes:
  • Eight ammunition depot projects advanced since fall 2025;
  • More than $8 billion nationwide in active infrastructure investments;
  • $60 million to acquire a 140-unit apartment complex in Dartmouth, Nova Scotia; and
  • $82.5 million to acquire the 475-acre Halifax Gate property.
• Delivering new military capabilities, resulting in faster delivery to address evolving threats. This includes:
  • $200 million domestic investment in Space Launch capability;
  • $307 million contract to Colt Canada for the Canadian Modular Assault Rifle Initiative; and
  • $118 million contract to deliver advanced digital periscopes to the Victoria-class submarine.
• Strengthening Canada’s economy and defence industry, resulting in a more resilient, competitive, and sovereign defence industrial base built in Canada. This includes:
  • $6.6 billion over five years ($2.1 billion in fiscal year 2025-26) for Canada’s defence industry through the Defence Industrial Strategy;
  • $1.4 billion investment for the Canadian Defence Industry Resilience Program;
  • $379.2 million to establish the new Regional Defence Investment Initiative;
  • $241 million for the Industrial Research Assistance Program’s new Defence Industry Assist initiative;
  • $92 million to launch Phase 1 of the Canadian Quantum Champions Program; and
  • $29.4 million to establish the Maritime Defence Innovation Secure Hub.
• Rebuilding the Defence Team, resulting in strengthened defence readiness by a renewed military and civilian capacity. This includes:
  • $2.1 billion CAF pay increase, the largest in a generation;
  • $3.7 billion for military housing through the National Housing Construction Program;
  • 7,000 Regular Force recruits targeted (fiscal year 2025-26);
  • 3,200 new Reserve enrollments (fiscal year 2025-26); and
  • 2,284 net new Defence Team civilian hires.
• Securing Canada and the Arctic, resulting in enhanced Arctic sovereignty and operational reach. This includes:
  • Progress on Arctic Over-the-Horizon Radar;
  • Ongoing North American Aerospace Defense Command modernization with the United States; and
  • The addition of the Canadian Coast Guard (CCG) to the Defence portfolio.
• CAF presence around the world, resulting in credible and sustained CAF operational contribution with Allies.
  • Operations UNIFIER and REASSURANCE renewed with $2 billion additional military assistance to Ukraine; and
  • Sustained CAF contribution to NATO missions.

NATO Investment Pledge

• On June 25, 2025, Canada and its NATO Allies agreed to a new Defence Investment Pledge of 5% annual GDP by 2035.
• As part of this 5% pledge, Canada will invest 3.5% of GDP for core defence expenditures, which includes strengthening the foundation of National Defence through investments in our people, capabilities, infrastructure, and digital capabilities.
• The remaining 1.5% of GDP will be dedicated to investments in critical defence and security-related expenditures, which will – among other things – protect our critical infrastructure, defend our networks, unleash innovation, and strengthen our defence industrial base.

Other Government Departments and Agencies’ Contributions to the NATO Investment Pledge

• On September 2, 2025, the CCG joined the National Defence portfolio resulting in the entirety of its budget being attributed to Canada’s defence expenditures on an ongoing basis whereas previously only 67% of its budget was counted.
• Eligible funding from other government departments also contributes to Canada’s defence expenditures.
  • This includes Veterans Affairs Canada, Treasury Board of Canada Secretariat, Global Affairs Canada, Shared Services Canada, and others that cannot be disclosed publicly.

Parliamentary Budget Officer (PBO) Report (2026)

• On February 5, 2026, the PBO released a report on “Fiscal Implications of Meeting NATO’s 5% Commitment”.
• The report examined the fiscal implications of Canada’s commitment to reach the NATO military spending target of 5% of GDP by 2035.
• The PBO estimates that meeting the 5% commitment by gradually increasing core defence spending from 2.0% in 2026 to 3.5% by 2035 will require additional defence spending averaging approximately $33.5 billion per year in cash expenditures over the next 10 years.
• It estimates that the additional core defence spending required to meet the NATO 5% commitment will increase the budgetary deficit by $63.0 billion (1.4% of GDP) and the federal debt-to-GDP ratio by 6.3% of GDP by fiscal year 2035‑36.

• The Defence Investment Agency (DIA), announced in October 2025, was stood up as a special operating agency within Public Services and Procurement Canada (PSPC), overseen by the Secretary of State (Defence Procurement), Stephen Fuhr.
• The Spring Economic Update announced the government’s intention to introduce enabling legislation to establish the DIA as a stand-alone entity and make legislative amendments to the Defence Production Act to provide the DIA with expanded authorities.
• The initial eight priority procurements under the DIA include:
  • Air Capability Program – Multi-Function Support (Challenger fleet replacement);
  • CC-130J Hercules In-Service Support and Royal Canadian Air Force (RCAF) 105 Block 8.1 Upgrade;
  • Arctic Over-the-Horizon Radar (A-OTHR);
    • In the 2026-2027 Main Estimates, National Defence is requesting $1.13 billion, excluding statutory, for the A-OTHR program.
  • Canadian Patrol Submarine Project;
  • Defence Enhanced Surveillance from Space Project;
  • Enhanced Satellite Communications Projects;
  • Operational Training Infrastructure Enterprise Modernization; and,
  • Airborne Early Warning and Control.
• Additional defence procurements are in the process of being transferred from PSPC to the DIA. Going forward, procurements will be selected based on Canadian Armed Forces (CAF) priorities and urgent operational needs requiring rapid delivery.

• The Agency’s key objectives are to:
  • Reduce red tape and administrative delays;
  • Streamline contract approvals while ensuring value for money;
  • Deliver timely capabilities to the CAF and the Canadian Coast Guard;
  • Drive Canadian innovation and industrial growth; and
  • Strengthen strategic partnerships with Canadian industry and international Allies.
• It will help to ensure that defence investments are aligned with Canada’s strategic priorities, industrial capacity, and operational requirements.
• In its initial phase, the Agency will establish its organizational foundation, including early engagement with government departments and industry partners, and pilot new procurement models to support long-term transformation.
• The Defence Investment Agency (DIA) is a key implementation partner for Canada’s Defence Industrial Strategy and will be critical to carrying out its Build-Partner-Buy framework.
• The Strategy’s agenda to transform procurement includes helping Canadian small- and medium-sized businesses (SMBs) integrate into domestic and global defence supply chains. Work is already underway:
  • Up to $6 billion is being allocated through the Business Development Bank of Canada’s new Defence Platform.
  • A new Defence Industry Assist stream through the National Research Council of Canada will support the development of innovative defence and dual-use technologies.
  • Through the $357 million Regional Defence Investment Initiative, Canada’s regional development agencies will help businesses across the country expand and access new markets.
• Over the next 10 years, these and other initiatives will increase Canadian defence industry revenues by 240% overall, with Canadian SMBs seeing a revenue boost of more than $5.1 billion per year.

• The Spring Economic Update, tabled in the House of Commons on April 28, 2026 also included $91.3 million over five years to Transport Canada, Fisheries and Oceans Canada, and the Canadian Coast Guard for a regional noise monitoring and management program and to address other threats to the endangered Southern Resident Killer Whale population.
• Starting in 2025-26, Budget 2025 provided $81.8 billion over five years on a cash basis to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF). This includes over $9 billion in 2025-26 that was announced by the Prime Minister in June 2025.
• 2026-27 Main Estimates amounts to $50.7 billion, representing an increase in net authority of $15 billion or 42.13% over the 2025-26 Main Estimates.
• In 2026-27, National Defence plans to spend $26.7 billion in operating expenditures, $17.97 billion in capital, $3.3 billion in grants and contributions, $446.7 million on Services Income Security Insurance Plan and $2.3 billion in statutory expenditures.
• The Budget highlights investments to meet the North Atlantic Treaty Organization’s (NATO) 2% of gross domestic product (GDP) target this fiscal year and to put Canada on a pathway to meet our NATO Defence Investment Pledge of investing 5% of GDP by 2035.

• Starting in 2026-2027, the Spring Economic Update 2026 proposed the provision of $2.08 billion of funding for:
  • $1.8 billion over three years, starting in 2026-2027, for National Defence to expand and extend Operation UNIFIER;
  • $195 million over five years, starting in 2026-2027, and $45 million ongoing to National Defence to expand the Cadets and Junior Canadian Rangers programs and build participants’ interest in skilled trades careers.
  • $55 million over four years, starting in 2026-2027, to National Defence to pilot the Reserve Trades Experience Program.
  • $31.5 million over five years, starting in 2026-2027, and $7.9 million ongoing for Global Affairs Canada to implement the new foreign information manipulation and interference unit using National Defence reference levels in line with core defence spending.
• Additionally, the Spring Economic Update 2026 proposed the provision of $91.3 million over five years, starting in 2026-27, with $3.7 million in remaining amortisation and $16.5 million ongoing to Transport Canada, Fisheries and Oceans Canada, and the Canadian Coast Guard to implement a regional noise monitoring and management program and to address other threats to the endangered Southern Resident Killer Whale population. Of this amount, $20.9 million over five years, starting in 2026-27, and $4.2 million ongoing will be sourced from existing resources.
• Starting in 2025-2026, Budget 2025 provided of $81.8 billion over five years (on a cash basis) for:
  • $20.4 billion over five years to recruit and retain a strong fighting force, including generational pay raises for the CAF and support to CAF healthcare.
  • $19.0 billion over five years to repair and sustain CAF capabilities and invest in defence infrastructure, including expanding ammunition and training infrastructure.
  • $10.9 billion over five years for upgrades to digital infrastructure at National Defence and the Communications Security Establishment, including those needed for modern warfare such as cyber defence.
  • $17.9 billion over five years to expand Canada’s military capabilities, including investments in additional logistics utility, light utility, and armoured vehicles, counter-drone and long-range precision strike capabilities, and domestic ammunition production, among other investments.
  • $6.2 billion over five years to expand Canada’s defence partnerships, including expanded military assistance to Ukraine and increased military training and international policy programming.
  • $805 million over five years to the Canadian Coast Guard, the Canadian Security Intelligence Service, and Public Services and Procurement Canada for complementary initiatives to support the collective responsibility of safeguarding Canada.

Sovereign Capabilities

• Sovereign capabilities represent priority investment areas for which the Government of Canada aims to maximize strategic autonomy and reduce supply chain vulnerabilities.
• To qualify, a capability must be critical to defend Canada, represent an area of existing or potential strength and be in demand by our Allies and partners to support collective defence and enable exports.

Main Estimates

• In the 2026–2027 Main Estimates, National Defence is requesting $7,323.5 million, for Incremental In‑Service Support.
• In the 2026–2027 Main Estimates, National Defence is requesting $2,238.1 million, for the River‑class Destroyer (RCD) project.
• In the 2026–2027 Main Estimates, National Defence is requesting $989.4 million, for the Joint Support Ships project.

Notable Domestic Defence Industrial Partners

• Quebec is a leading aerospace centre, and is home to six prime contractors, including Bombardier and CAE.
• Ontario plays an important role in equipping the Canadian Army with ammunition and land systems. For example, Colt Canada, based in Kitchener, Ontario, provides small arms ammunition.
• In Atlantic Canada, marine technology companies provide the Royal Canadian Navy with essential equipment such as sonar systems, and torpedo defence systems. For instance, Irving Shipbuilding Inc., in Halifax, Nova Scotia, is a major partner in the National Shipbuilding Strategy.
• Western Canada’s aerospace companies support the Royal Canadian Air Force by providing pilot training, maintenance and support. SkyAlyne provides training and operational support in Manitoba and Saskatchewan, and KF Aerospace provides maintenance services for specific fixed-wing aircraft.
• Additionally, under the National Shipbuilding Strategy, Canada has signed Umbrella Agreements with three large strategic partner shipyards across the country: Irving Shipbuilding Inc. (ISI) in Halifax, Nova Scotia, Chantier Davie Canada Inc. (CDCI) in Lévis, Quebec, and Vancouver Shipyards Co Ltd. (VSY) in Vancouver, British Columbia. These shipyards are building vessels for both the Royal Canadian Navy (RCN) and the Canadian Coast Guard (CCG):
• ISI successfully delivered six Arctic and Offshore Patrol Ships and has commenced work on the first River Class Destroyer for the RCN. ISI is also building two Arctic and Offshore Patrol Vessels (AOPS) for CCG.
• CDCI is currently building one Polar Icebreaker (Polar Max) and has been awarded an Ancillary Contract for up to six Program Icebreakers for CCG.
• VSY has successfully delivered three Offshore Fisheries Science Vessels and one Offshore Oceanographic Science Vessel and is currently building one Polar Icebreaker and has engineering and long-lead items contracts for six Multi-Purpose Icebreakers for CCG. VSY is also building two Joint Support Ships for RCN.

New Measures to Protect, Build, and Transform Canadian Strategic Industries

• On September 5, 2025, the Prime Minister announced a series of new, strategic measures for workers and businesses in those sectors most impacted by United States tariffs and trade disruptions.
• Measures relevant to National Defence include:
  • The Defence Industrial Strategy.
  • A new Buy Canadian Policy through which the government will introduce a new policy to ensure the federal government buys from Canadian suppliers, require local content when domestic suppliers are unavailable, and extend this approach to all federal funding streams and Crown corporations.
  • This includes the new Policy on Prioritizing Canadian Materials in Federal Procurement that will require domestic and foreign suppliers contracting with the federal government to source key materials from Canadian companies in defence and construction procurements exceeding a certain threshold. This policy will initially cover Canadian steel and softwood lumber and will be sufficiently flexible to allow the Government to adjust the parameters and include additional domestic materials over the following months.

Buy Canadian Policy

• Two pillars of the Buy Canadian Policy Framework were announced in December 2025:
  • The Policy on Prioritizing Canadian Materials in Federal Procurement applies to federal construction and defence goods, like ships and aircraft parts, for contracts worth $25 million or more, where the requirement for these materials is at least $250,000, and a Canadian source of supply is available; and,
  • The Policy on Prioritizing Canadian Suppliers and Canadian Content in Strategic Procurement applies initially to procurements above $25 million in specific sectors (decreasing to $5 million by spring 2026), including defence and security. At bid evaluation, the policy gives preference to bids submitted by Canadian suppliers and to bids offering Canadian content.

Launch of the Buy Canadian Procurement Policy Framework

• Effective December 16, 2025, the Government introduced new federal procurement rules to support Canadian workers and industries through the Buy Canadian Procurement Policy Framework. These changes will:
  • Help create a strong Canadian supply chain by prioritizing Canadian suppliers and Canadian-made goods and services whenever possible; and,
  • Help Canadian industries become more self-sufficient and resilient to changes in the global economy.

Defence Investment Agency (DIA)

• On October 2, 2025, Prime Minister Carney announced the creation of the DIA, which will overhaul and streamline Canada’s defence procurement. The Spring Economic Update 2026 proposes to provide $103.8 million over five years, starting in 2026-27, and $22.3 million ongoing to establish and operate the DIA, and announces the government’s intention to introduce enabling legislation to establish the DIA as a stand-alone entity and legislative amendments to the Defence Production Act to provide the DIA with expanded authorities.
• The DIA represents a significant step in transforming Canada’s defence procurement system to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF) to respond to evolving global threats and meet operational demands. It will modernize defence procurement by centralizing expertise, streamlining decision-making, and cutting red tape, while ensuring faster delivery of mission-critical equipment to the CAF and the Canadian Coast Guard.
• The Agency’s mission is to streamline high-priority procurements, work with Canadian industry to create jobs, strengthen our defence industrial base, and drive innovation, as well as align defence investments with Canada’s strategic and operational needs.
• With greater autonomy and robust contracting authorities, the Agency will reduce administrative overhead, improve procurement efficiency, and enable faster, more accountable delivery of defence capabilities.

Defence Industrial Strategy (DIS)

• On February 17, 2026, the Prime Minister launched the DIS to transform Canada’s defence industries by prioritizing Canadian suppliers and materials, investing in Canadian innovation and commercialization, and streamlining procurement to give businesses consistent and predictable demand.
• Central to the DIS is the “Build–Partner–Buy” framework to position Canada as a leader in defence production:
  • Canada will build: In the areas of homegrown strength and key sovereign capabilities, such as shipbuilding, aerospace, space, land systems, and digital technologies. New defence procurements will prioritise Canadian firms and Canadian manufacturing as a matter of policy.
  • Canada will partner: Where Canada lacks the capability to build domestically or there is an advantage to working jointly with partners, we will partner with trusted Allies to deliver capabilities for the CAF.
  • Canada will buy: When it is not feasible to build domestically or partner with an ally, Canada will buy equipment from allies, with strong conditions that spur reinvestment into the Canadian economy, support careers in our defence industry, and ensure Canadian sovereign control over the operation and sustainment of the newly acquired assets.
  • Buy Canadian will be the North Star toward a new way of doing business in defence acquisitions. Taking these essential steps will reduce overreliance on foreign suppliers, foster national champions in our defence industry, secure sovereign control of our own equipment and intellectual property, and create value across Canadian supply chains.
    • The Buy Canadian Policy Framework allows for certain exemptions. For example, Section 5.2 of the framework notes that policy instruments developed pursuant to the Framework apply unless the procurement is excluded under section 3(1)(h) of the Government Contracts Regulation, namely contracts entered into with another government or government entity (including requirements fulfilled through the Foreign Military Sales (FMS) program).
      • Buying Canadian is aligned with our efforts to integrate Canadian small- and medium-sized businesses (SMBs) into domestic and international supply chains. Work is already underway:
        • Up to $6 billion is being allocated through the Business Development Bank of Canada’s new Defence Platform.
        • A new Defence Industry Assist stream through the National Research Council of Canada will support the development of innovative defence and dual-use technologies.
        • Through the $357 million Regional Defence Investment Initiative, our Regional Development Agency is helping businesses across the country expand and access new markets.
    • The Government will also advance these efforts through the forthcoming launch of the Small and Medium Business Procurement Program to make it easier for Canadian firms to compete and win in federal procurements, by modernizing digital tools and reducing barriers.
    • Over the next 10 years, these efforts will increase Canadian defence industry revenues by 240% overall, with Canadian SMBs seeing a revenue boost of more than $5.1 billion per year.

Canada-United States (U.S.) Defence Relationship

• The Canada-U.S. bilateral defence relationship is characterized by extensive military‑to‑military cooperation, policy dialogue, and high-level strategic engagements. This is accomplished through several key mechanisms:
  • Institutions, organizations, and agreements
    • The binational North American Aerospace Defense Command (NORAD).
    • The Permanent Joint Board on Defence.
    • The Military Cooperation Committee.
  • Personnel exchanges
    • Approximately 320 Canadian Armed Forces (CAF) members serve under binational NORAD command across the U.S.
    • Another 300 CAF members serve in other areas in the U.S.
    • Approximately 40 American military personnel serve at North Bay, Ontario, and Winnipeg, Manitoba, as part of NORAD.
  • Joint exercises and operations
    • Canada and the U.S. conduct regular joint activities including Exercise ARCTIC FORGE, Exercise GLOBAL RESOLVE, Exercise VITAL ARCHER, and Operation NOBLE DEFENDER.
    • The U.S. also participates in Operation NANOOK.
    • Canada participates in U.S. led counternarcotics operations in the Caribbean through our Operation CARIBBE, which is distinct from the recent U.S. actions in Venezuela.
  • Cooperation in Emerging Domains
    • Close collaboration on cyber, space, and emerging technologies, involving National Defence, Canada’s Communications Security Establishment, U.S. partners including Department of War, U.S. Space Force, U.S. Space Command, U.S. Cyber Command, and the broader U.S. intelligence community.
  • Defence materiel and industrial cooperation
    • Defence material relations are underpinned by the Defence Production Sharing Agreement and Title III of the American Defense Production Act, which recognizes Canadian businesses as domestic suppliers.
    • The United States Foreign Military Sales Program enables Canada and allies to acquire defence equipment, services, and training through government-to-government agreements.
    • As a qualifying country under the U.S. Defense Federal Acquisition Regulations Supplement (DFARS), Canadian defence exports are exempt from U.S. tariffs. Specifically, DFARS 252.225‑7013 waives duties on Canadian products entering the United States for defence purposes.
  • Multilateral engagements
    • Canada and the U.S. cooperate through a range of multilateral forums, including the North Atlantic Treaty Organization, Five-Eyes, the Global Coalition to Defeat Daesh, the Combined Space Operations Initiative, Operation OLYMPIC DEFENDER, the Ukraine Defense Contact Group, and the Partnership for Indo-Pacific Industrial Resilience.

Canada – European Union (EU) Security and Defence Partnership

• Signed June 23, 2025.
• Established a political framework to boost cooperation in security, defence, maritime efforts, and emerging threats like malicious cyber activities.

Security Action for Europe (SAFE)

• The final Canada – EU agreement was signed on February 14, 2026.
• By joining SAFE, Canadian industry is now able to participate in procurements funded by SAFE loans with up to 80% contract value provided by Canadian industry - a significant increase from the previous 35% threshold for other third countries.
• Currently, Canada is the only non-European country to receive preferential access to this extraordinary EU defence procurement initiative.

Canada-Denmark-Faroe Islands-Greenland Defence Cooperation Memorandum of Understanding (MOU)

• This MOU strengthens defence cooperation across several key areas: defence innovation, materiel and industrial cooperation, mutual logistics support, and personnel, training and exercises, and education.

Canada-France Feuille de Route

• This Roadmap is designed to deliver concrete, actionable outcomes across areas of shared interest. It highlights the strategic value of the two countries’ cooperation to advance mutual defence priorities within the Alliance.

Canada-Netherlands Joint Vision Statement

• This statement confirms Canada and the Netherlands’ shared intent to deepen defence and industrial cooperation, including continued support for Ukraine and enhanced commercial collaboration.

Canada’s Indo-Pacific Strategy

• Canada’s Indo-Pacific Strategy outlines a whole-of-government approach to supporting a stable, secure, and prosperous Indo-Pacific region.

Operation HORIZON

• Operation HORIZON is Canada’s forward-presence mission in the Indo-Pacific region, promoting peace, stability, and an international order based on the rule of law.

Operation NEON

• Operation NEON is Canada’s contribution to a coordinated multinational effort supporting the implementation of United Nations Security Council sanctions against North Korea.
• Military ships, aircraft, and personnel are deployed to conduct surveillance operations, identifying maritime sanctions evasion activities, particularly ship-to-ship transfers of banned commodities.
• Canadian warships and aircraft will continue conducting episodic monitoring activities in 2026.

Funding for Bilateral and Multilateral Exercises

• As part of the Indo-Pacific Strategy’s five interconnected priorities promoting peace, resilience, and security, $48.7&Nbsp;million is allocated to increase Canadian Armed Forces participation in bilateral and multilateral exercises with regional allies and partners.

Status of Visiting Forces Agreement (SOVFA)

• In November 2025, Canada and the Philippines signed a SOVFA, strengthening the bilateral defence relationship and once in force, will open the door to further activities and exercises.

Security and Defence Cooperation Partnership (SDCP)

• In October 2025, Canada and the Republic of Korea agreed to a SDCP, a first of its kind in the region, committing to expanding and strengthening cooperation to address evolving traditional and emerging threats.
• An SCDP Action Plan was agreed upon in February 2025 to ensure operationalization of this commitment.

Enhancing Defence Industrial Relations with the European Union (EU)

• In March 2025, the White Paper for European Defence and the ReArm European Plan/Readiness 2030 was released to frame a new approach to defence, strengthen pan-European defence capabilities, and identify investment needs.
• On June 23, 2025, Canada signed the Security and Defence Partnership (SDP) with the EU to strengthen defence cooperation with Europe. This new partnership was the intentional first step toward Canada’s participation in Security Action for Europe (SAFE), an instrument of the EU’s Readiness 2030 plan, formerly known as ReArm Europe.
• On December 1, 2025, Prime Minister Carney announced the conclusion of negotiations for Canada’s participation in SAFE, which aims to result in greater access for Canadian companies into the European market.
• On February 14, 2026, the final Canada-EU SAFE Agreement was signed at the Munich Security Conference, making Canada the first non-EU member state to conclude a bilateral agreement to join the SAFE Regulation.
• SAFE is a financial instrument that will provide €150 billion in loans to eligible Member States to acquire military capabilities and increase interoperability in Europe by 2030. SAFE also promotes joint procurement and increased defence industrial collaboration between EU Member States and countries with an SDP with the EU. Canadian firms are now eligible to participate in SAFE procurements up to 80% of the total cost of the contract.
• Of note, through the loosening of fiscal constraints, the EU intends to encourage increased defence investment by Member States of up to €600 billion. These contracts will not be restricted by the same content requirements as the SAFE Instrument and provide Canadian industry with additional opportunities to deepen defence industrial ties with European allies and partners.
• Canada aims to participate in the Readiness 2030 through its SDP with the EU and to expand joint defence procurement in capability areas like artillery systems, air and missile defence, ammunition, drones and counter-drone systems, mobility assets, emerging technologies, and critical infrastructure protection.

Participation in Indo-Pacific Exercises and Activities

• Through 2025, the Canadian Armed Forces (CAF) participated in numerous exercises, such as:
  • KHAAN QUEST and PACIFIC AIRLIFT RALLY (Mongolia)
  • MOBILITY GUARDIAN (Guam)
  • ANNUALEX and Surface Warfare Advanced Tactical Training (Japan)
  • FREEDOM SHIELD, ULCHI FREEDOM SHIELD, LOCKED SHIELDS, and Allied Power Exercise (APEX) (Republic of Korea)
  • SAMA SAMA and ALON (Philippines, Australia, and partner nations)
  • TALISMAN SABRE (Australia and partner nations)
  • PACIFIC PARTNERSHIP (US and partner nations)
  • SUPER GARUDA SHIELD (Indonesia)
• On November 10, 2025, His Majesty’s Canadian Ship (HMCS) Ville de Québec returned to its home port of Halifax, Nova Scotia, after completing a seven-month deployment, which included travel across the Indo-Pacific and work with regional partners under Operation HORIZON.
• HMCS Max Bernays deployed on Operation HORIZON in 2025, returning to Esquimalt, British Columbia, on December 19, 2025. The ship took part in multinational exercises, including SAMA SAMA in the Philippines and ANNUALEX in Japan.
• HMCS Max Bernays also participated in Operation NEON along with a CP-140 detachment and conducted port calls and defence diplomacy engagements in the Philippines, Japan, and South Korea, all in support of Canada’s Indo-Pacific Strategy.
• From July 13, to August 4, 2025, the CAF deployed a joint force of approximately 600 personnel to participate in Exercise TALISMAN SABRE in Australia. This included HMCS Ville de Québec and was the largest single deployment of CAF personnel to the region since the launch of Operation HORIZON, making it a significant opportunity to improve interoperability with important regional partners.
• In support of Operation HORIZON, the CAF routinely transits the Taiwan Strait as required for efficient movement between the operating areas. These transits contribute to a free, open, and secure Indo-Pacific.
• Further, under the same principles, the CAF also conducts regular Multilateral Maritime Cooperative Activities (MCA) in the South China Sea with the Philippines and other key partners such as Australia, Japan, and the United States.
• An MCA is a joint effort between multiple nations to collaborate on maritime issues. These activities aim to enhance cooperation, improve interoperability, and address shared maritime security challenges.
• MCAs often involve coordinated patrols, strategic collaborations, and other joint operations, demonstrating a collective commitment to upholding international maritime law and maintaining stability in international waters.

Defence Materiel Cooperation in the Indo-Pacific

• The Australia-Canada Defence Materiel Cooperation Committee serves as the principal forum for discussing materiel issues of mutual interest and identifying potential materiel cooperative activities. The many common platforms used by the Australian Defence Force and the CAF, such as the F-35 fighter, P-8 maritime patrol aircraft, Chinook helicopter, A330 Multi Role Tanker Transport, and Hercules and Globemaster III transport aircraft provide ample opportunities for sustainment cooperation. The adoption of BAE Systems’ Type 26 Global Combat Ship as the basis for Canada’s River Class Destroyer and Australia’s Hunter Class frigate has also resulted in extensive cooperation between the nations’ projects.
• Canada and New Zealand are partners (along with Chile and Germany) in the International Users Group for the Lockheed Martin Canada CMS 330 naval combat management system adopted by the four nations, working together on the sustainment and future development of the system.
• Canada and the Republic of Korea leverage their bilateral Defence Materiel Cooperation Memorandum of Understanding (2022) and the associated Joint Meeting (Materiel), which meets annually, to identify material cooperative activities, exchange information, and advance Korea-Canada defence industrial collaboration. Current efforts under the auspices of the Joint Meeting (Materiel) include discussions on naval vessel maintenance cooperation; joint defence export promotion, and shipbuilding workforce development.
• Canada and Japan have established a Joint Working Group for cooperation in the field of defence equipment and technology, with the next meeting scheduled in Ottawa in May 2026. On January 27, 2026, the Minister of National Defence and Japan’s Ambassador to Canada signed the Japan-Canada Equipment and Technology Transfer Agreement permitting the export of Japanese-origin defence equipment, technology, and intellectual property to Canada.

Cyber Cooperation in the Indo-Pacific

• Canada’s Indo-Pacific Strategy included $2.6 million to bolster military-to-military cyber cooperation and sharing of information and lessons learned with select partners in the region.
• As part of this commitment, the Canadian Armed Forces Cyber Command (CAFCYBERCOM) is deepening its relationship with key actors in the region through joint exercises, strategic-level engagements on cyber defence issues, and the delivery of capacity-building training.
• For example, in January 2026, CAFCYBERCOM delivered its Military Cyber Security Operations Course to the Armed Forces of the Philippines, sponsored by the Military Training and Cooperation Program.

Indo-Pacific Regional Training and Capacity Building

• Through its Military Training and Cooperation Programme, National Defence has programmed over $6 million in support of military capacity building and Women, Peace, and Security (WPS) initiatives in the Indo-Pacific since 2023, training over 500 personnel from Indonesia, the Philippines, Vietnam, and Malaysia.
• WPS initiatives include supporting tailored training and seminars to enhance gender integration and gender perspectives in military operations in the armed forces of Malaysia, Indonesia, the Philippines, and Vietnam, as well as cooperating with Japan to create a maritime intersectionality tool to enhance these countries’ maritime security operations.
• Other capacity building efforts include enhancing the Malaysian Armed Forces’ ability to respond to chemical, biological, radiological, or nuclear threats; collaborating with the United States to deliver two maritime surveillance uncrewed aerial systems to the Philippines; and providing submariner training to the Philippine Navy.

• Budget 2025 allocated $68.2 million over three years to the Department of National Defence (DND), Innovation, Science and Economic Development (ISED), the National Research Council (NRC), and the Communications Security Establishment (CSE) to establish the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS).
• BOREALIS will accelerate the delivery of Canadian-developed cutting-edge technologies and capabilities to the Canadian Armed Forces (CAF) and CSE, while serving as the interface for industry and academia to engage and access defence innovation programs.
• On November 21, 2025, the establishment of Canada’s first Maritime Defence Innovation Secure Hub (DISH) was announced as the first project under BOREALIS. Selection of the first round of funded research projects is expected in 2026.

• BOREALIS aims to accelerate the delivery of advanced and dualuse technologies, ensuring the Canadian Armed Forces (CAF) and Canadian Security Establishment (CSE) can access cuttingedge capabilities more rapidly.
• Key features of BOREALIS:
  • Joint Program Office (JPO): A cross-departmental implementation team housed within DND at Defence Research and Development Canada (DRDC) to lead early delivery;
  • Program Coherence and Alignment: Providing coherence and streamlining access to federal innovation programs to accelerate delivery and align investments;
  • Team Canada Model: Leveraging expertise from across Department of National Defence (DND)/CAF, CSE, National Research Council Canada (NRC), Innovation, Science and Economic Development Canada (ISED), and other departments; and
  • Defence Innovation Secure Hubs (DISH): Co-located classified environments for prototyping, validation, and research and development (R&D).
• A key component is the establishment of DISH, secure facilities enabling classified collaboration between government, academia, and industry.
• On November 21, 2025, the Minister of National Defence announced the first project under BOREALIS: the establishment of Canada’s initial Maritime DISH in collaboration with Centre for Ocean Ventures and Entrepreneurship (COVE) and the Atlantic Canada Opportunities Agency. The COVE facility in the Halifax Regional Municipality brings together an array of start-ups, small and medium-sized enterprises, and research institutes.
  • The Government will invest $29.4 million to establish the Maritime DISH.
  • This project serves as a pilot for a national network of secure research and development spaces.
  • Key focus areas include:
    • undersea domain awareness;
    • uncrewed and autonomous systems;
    • advanced sensing and surveillance technologies; and,
    • AI-enabled maritime analytics.
• On February 18, 2026, BOREALIS announced a call for proposals to establish two additional DISHs; one focused on uncrewed systems and one on quantum technology. Successful proponents will be announced in spring 2026, with their new hubs expected to be operational within two years and undertaking key R&D activities. The BOREALIS team continues to assess other potential DISHs needed to advance defence and security R&D in Canada.

North Atlantic Treaty Organization (NATO) defence-critical minerals

• NATO has identified 12 defence‑critical minerals as integral to the manufacturing of advanced defence systems and equipment: aluminum, beryllium, cobalt, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium, and tungsten.
• Processing and refining – often concentrated outside trusted supply chains – are required to turn these minerals and metals into usable defence inputs, for example refined germanium (often a by‑product of zinc processing) is used in semiconductors and electronics for aircraft sensors and optical systems.
• Modern munitions rely on a broader range of critical minerals, including antimony, copper, and nickel, and some of these inputs face growing supply pressures.
• Canada’s investments in critical minerals and allied stockpiling initiatives count toward NATO’s defence spending commitments, reinforcing their role in Alliance readiness and industrial capacity.

Stockpiling and Offtake Agreement

• Canada is leveraging the modernized Defence Production Act (2025) to support stockpiling of defence‑relevant critical minerals and reduce supply risk across peacetime, crisis, and conflict scenarios.
• The Government has advanced defence-oriented offtake agreements for scandium (a key input into high‑performance aluminum alloys used in drones and missiles) and graphite (used in structural components, including submarine hull applications).

Investments

• Budget 2025 includes $443 million over five years to advance critical minerals processing technologies, support joint investments with allies, and develop a stockpiling mechanism.
• Budget 2025 also provides $1.5 billion through the First and Last Mile Fund and a $2-billion Critical Minerals Sovereign Fund to help move projects to final investment decisions faster and strengthen supply chain resilience.

• Until the early 2020s, critical minerals were primarily treated as an economic, trade, and industrial policy issue, with policy attention focused on natural resource development, clean technology, and advanced manufacturing.
• Rising geopolitical tensions, increased defence modernization, and the concentration of global mineral supply chains have driven allies to reassess industrial inputs as potential strategic vulnerabilities, particularly for defence production and sustainment.
• Recent conflicts and disruptions to global trade routes have further underscored the fragility of defence‑relevant supply chains, reinforcing allied concerns about continuity of production and sustainment during periods of heightened demand and global instability.
• Russia’s invasion of Ukraine and broader strategic competition have accelerated Allied concerns about the weaponization of supply chains, including the use of export controls, price manipulation, and supply disruptions to achieve strategic objectives.
• In response, North Atlantic Treaty Organization (NATO) and G7 partners increased coordination on defence‑relevant supply chains, leading to the identification of defence‑critical inputs and the recognition that mineral availability can directly affect equipment production, maintenance, and surge capacity.
• Canada’s defence policy response has evolved alongside this shift, with growing recognition that defence readiness depends not only on platforms and munitions, but also on assured access to upstream and midstream industrial inputs.
• This evolution informed the development of Canada’s Defence Industrial Strategy (DIS), which places greater emphasis on industrial resilience, trusted supply chains, and reducing dependency on single or non‑likeminded suppliers for key defence inputs.
• In October 2025, Canada modernized the Defence Production Act to explicitly include defence‑relevant critical minerals, marking a shift from traditional industrial policy tools toward defence authorities to manage supply risk and support readiness.
• As allied coordination has intensified, critical minerals stockpiling has evolved from a national resilience measure into a broader allied defence industrial mechanism, including through NATO’s High Visibility Project on stockpiling defence-critical minerals.
• Critical minerals were incorporated into DIS implementation as a foundational enabler, linking defence industrial capacity to efforts on processing, allied co-investment, offtake agreements, and strategic stockpiling, rather than operating as a standalone resource policy issue.

Northern Operational Support Hubs (NOSH)

• The NOSH program will build a network of support sites to help the Canadian Armed Forces (CAF) respond faster, stay longer, and operate more effectively in the Canadian Arctic.
• National Defence is investing approximately $2.67 billion over 20 years (cash basis) in Northern Operational Support Hubs (main support sites) and Nodes (NOSN; secondary support sites).
• As of March 12, 2026, confirmed NOSH locations announced are Inuvik, Yellowknife, Iqaluit, Whitehorse, and Resolute. Confirmed NOSN locations announced are Cambridge Bay and Rankin Inlet.
• NOSH are intended to support a greater year-round presence through multi-purpose, dual-use infrastructure.

Arctic Infrastructure Fund

• Budget 2025 announced an Arctic Infrastructure Fund, led by Transport Canada, that will invest $1 billion over four years, starting in fiscal year 2025-26.
• The Fund supports major northern transportation projects with dual-use applications, including airports, seaports, all-season roads, and highways.
• These investments will advance shared priorities by supporting National Defence operational readiness while meeting the infrastructure needs of Northern and Indigenous communities.
• Projects under this Fund will focus on critical enablers such as transportation, energy, and communications, which are essential for sustaining operations and strengthening resilience in the Arctic.

Arctic Science and Technology

• Defence Research and Development Canada’s (DRDC) Powering the North program aims to enhance sustainable alternative power and energy dual-use options, while reducing diesel use for DND/CAF operations, including in the North. Energy security is a key enabler to sustain personnel, operations, and support infrastructure in Arctic regions.

Dual-Use Pathfinder Initiative

• As part of efforts to build homes on public lands, Budget 2024 announced that the Government would explore the redevelopment of National Defence properties in Halifax, Toronto, and Esquimalt that could be suitable for both military and civilian uses. These are known as the “Pathfinder Sites”.
• National Defence is exploring modern methods of construction, including modular and prefabrication approaches.

Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS) and Defence Innovation Secure Hubs (DISHs)

• BOREALIS includes the establishment of DISHs as secure facilities to enable the development and validation of emerging and commercial dual‑use technologies in a secure environment.
• On November 21, 2025, National Defence announced $29.4 million to establish the first Maritime DISH in collaboration with the Centre for Ocean Ventures and Entrepreneurship (COVE) and the Atlantic Canada Opportunities Agency (ACOA).
• On February 18, 2026, BOREALIS issued a Call for Proposals providing up to $50 million to support the establishment of new DISHs focused on quantum technology and uncrewed systems.

North Atlantic Treaty Organization (NATO) Defence Innovation Accelerator for the North Atlantic (DIANA)

• DIANA is a NATO-led accelerator connecting start-ups, researchers, and technology companies to develop dual-use solutions to defence and security challenges.
• DIANA delivers structured accelerator programmes, funding resources, and expert mentorship to help innovators advance technology readiness levels (TRLs) and facilitate adoption by military end-users.
• The Government of Canada provides funding to DIANA-selected Canadian innovators to further develop and scale their capabilities.
• DIANA’s North American Regional Office, located in Halifax, Nova Scotia, is supported by DND, reflecting Canada’s commitment to the NATO Defence Investment Pledge.

Defence Industry Assist Initiative (DI Assist)

• DI Assist is delivered through NRC’s Industrial Research Assistance Program (IRAP).
• DI Assist is funded at $241 million starting in 2025–26 to provide funding and advice to high-potential, innovative Canadian SMEs developing made-in-Canada defence and dual-use technologies.

Prime Minister’s plan to defend, build, and transform the North

• On March 12, 2026, Prime Minister Mark Carney announced a new plan to “defend, build, and transform” Canada’s Northern and Arctic region, framed around Arctic sovereignty, security, and northern development.
• The announcement positioned major northern infrastructure as a core enabler of Arctic security and sovereignty, including significant investments in defence-related infrastructure upgrades and associated northern projects that also link to broader dual‑use objectives.
• National Defence’s dual‑use focus in the Arctic and North reflects the reality that remoteness, limited transportation networks, and short construction seasons make sustained operations dependent on disciplined logistics and early coordination with partners, including Indigenous rights‑holders.

Defence Industrial Strategy (DIS) – dual‑use technology

• On March 9, 2026, Minister of National Defence David McGuinty, alongside the Minister of Industry and the Secretary of State (Defence Procurement), highlighted the direction to accelerate defence and dual‑use technologies under Canada’s Defence Industrial Strategy, including support to Canadian firms and next‑generation capabilities for the CAF.
• This direction aligns with National Defence’s broader intent to improve pathways that move advanced and dual‑use innovation into practical defence and security use, including through initiatives that enable secure testing and validation of emerging technologies.

Canadian Armed Forces (CAF) Arctic Presence

• The North American Aerospace Defense Command (NORAD) conducts operations to defend the approaches to North America with personnel on watch 24/7.
• The CAF permanent presence in the North is anchored by Joint Task Force North (JTFN); Currently, up to 160 personnel could be stationed with JTFN, which is headquartered in Yellowknife with detachments in Whitehorse and Iqaluit.
• There are approximately 5,000 Canadian Rangers that maintain a meaningful presence in 208 remote and isolated communities, including over 1,500 Rangers in 66 Northern communities.
• On March 18, 2025, Prime Minister Carney announced $420 million in new funding to boost the presence of the CAF in the North and Inuit Nunangat.

Canadian Coast Guard (CCG) Arctic Presence

• Regional headquarters in Yellowknife, Northwest Territories (NT), and CCG Base in Hay River, NT;
• Marine Communications and Traffic Services Centre in Iqaluit, NU, plus 10 remotely controlled radio sites;
• Environmental response depots (staffed) in Yellowknife and Hay River, NT, and Iqaluit, NU, and (unstaffed) in Churchill, Manitoba, and Tuktoyaktuk, NT;
• Arctic Marine Response Station in Rankin Inlet, NU, operating from June to November;
• 48 CCG Environment Response Equipment Caches;
• 1 Rapid Air Transportable Pack in Hay River, NT;
• Over 2,000 Lit and Un-Lit Fixed and Floating Aids to Navigation; and
• CCG Auxiliary: 12 units; 576 members; 61 vessels.

Investments with an Arctic Nexus in Canada’s Defence Policy (cash basis)

• $2.7 billion over 20 years to establish Northern Operational Support Hubs;
• $29.1 billion over 20 years to acquire a more modern, mobile, and effective tactical helicopter capability;
• $7.6 billion over 20 years for airborne early warning aircraft;
• $2.1 billion over 20 years to acquire specialized maritime sensors to conduct ocean surveillance; and
• $985 million over 20 years to build a new satellite ground station in the Arctic.

Defending, Building, and Transforming the North

• On March 12, 2026, Prime Minister Carney announced measures, including:
  • An investment of $32 billion at Forward Operating Locations in Yellowknife, Inuvik, and Iqaluit, and at Deployed Operating Base 5 Wing Goose Bay, including:
    • infrastructure upgrades such as airfield upgrades;
    • new or repurposed hangars;
    • ammunition and fuel facilities; and
    • buildings and equipment for accommodations, warehousing, IT, and general support.
  • A $2.67 billion investment to establish two Northern Operational Support Hubs (NOSHs) at Whitehorse and Resolute, and two Northern Operational Support Nodes (NOSNs) at Cambridge Bay and Rankin Inlet, and to enable rapid, year‑round CAF response across the Arctic and the North, no matter how remote.
  • An investment of $294 million in Arctic airports, including building a runway overlay and modernising Rankin Inlet Airport and upgrading Inuvik Airport to allow larger aircraft to land, connect Northern communities to the rest of the country year-round to enable faster, more convenient, and lower-cost travel for both the military and civilians.

Canadian Armed Forces (CAF) Presence in the Arctic

• Joint Task Force North
  • Anchors the CAF’s permanent presence in the North in Yellowknife, Northwest Territories (NT), with detachments in Iqaluit, Nunavut (NU) and Whitehorse, Yukon Territory (YT), along with 440 Transport Squadron, 1 Canadian Ranger Patrol Group Headquarters, and a Company of Reserve Infantry.
• Canadian Army’s Arctic Response Company Groups:
  • Conduct sovereignty operations;
  • Facilitate disaster response support; and
  • Provide general assistance to other government departments in the Canadian North.
• The CAF’s footprint in the North and Inuit Nunangat:
  • Canadian Forces Station Alert, the northernmost CAF outpost;
  • CAF Arctic Training Centre in Resolute Bay, NU, which provides a permanent location for training and operations in the Arctic and is staffed approximately 9 months of the year; and
  • Assets that support North American Aerospace Defense Command (NORAD) operations, including the North Warning System, three Forward Operating Locations in, Inuvik, NT, Iqaluit, NU and Yellowknife, NT, and one Deployed Operating Base in Goose Bay, Newfoundland and Labrador (NL).
• Collaboration with intergovernmental and Northern First Nations, Inuit and Métis partners to ensure we are fulfilling obligations under modern treaties, land claims agreements, and self-government agreements:
  • This is in addition to collaboration through the Inuit-Crown Partnership Committee (ICPC), which meets three times annually, and provides briefings to Northern Premiers and Indigenous leaders; and
  • The ICPC has co-developed a work plan with Defence focused on multi-purpose infrastructure and procurement in Inuit Nunangat.
• Northern Operational Support Hubs (NOSHs)
  • $2.67 billion over 20 years (cash basis).
  • These hubs will better ensure Canadian sovereignty by establishing a greater year-round presence across the Arctic and the North, and investing in multi-purpose, dual-use infrastructure that also meets the needs of the territories, Indigenous Peoples, and Northern communities.
  • On March 6, 2025, the Minister of National Defence announced Inuvik, NT, Yellowknife, NT and Iqaluit, NU, as NOSH locations.
  • On March 12, 2026, the Prime Minister announced two new NOSHs at Whitehorse and Resolute, and two new Northern Operational Support Nodes (NOSNs) at Cambridge Bay and Rankin Inlet.
• Further, the NORAD Northern Basing Infrastructure project, part of Canada’s NORAD modernization plan, will upgrade legacy and build new infrastructure to support NORAD and CAF operations.
  • As part of this project, National Defence is maintaining and enhancing CAF infrastructure at Inuvik, NT, Yellowknife, NT, Iqaluit, NU, and 5 Wing Goose Bay, NL.
  • The investment covers recapitalization, modernization, replacement or addition of new critical infrastructure, airfield rehabilitation, as well as upgrades to security, information management/information technology, and electrical systems.
• Separate from Northern Basing Infrastructure, other projects will upgrade infrastructure in Alert and Rankin Inlet, NU, the North Warning System locations, and the Whitehorse Cadet Camp, YT.
• On March 18, 2025, Prime Minister Carney announced $420 million in new funding to boost the presence of the CAF in the North and Inuit Nunangat.
  • This expansion anticipates including more CAF personnel and the potential for increased inclusion of forces from allied nations with an Arctic interest.
  • New activities and increased resources aim to support a near persistent operations through Operation NANOOK and other exercises and training to assert Canada’s presence and sovereignty, as well as refine information-sharing processes.

Exercises and Operations

• CAF presence and responsiveness in the Arctic is maintained through regular national, bilateral, and multilateral exercises and operations which includes participation by the CCG.
  • Operation LATITUDE focuses on increasing domain awareness in the Western Arctic and its approaches, in addition to enhancing interoperability with the United States military in the context of continental defence through personnel exchanges, integrated drills, and tactical coordination.
  • Operation NANOOK is a near persistent all-domain CAF operation that aims to detect, deter, and defend against threats in the Arctic, and augment CAF’s permanent Arctic presence.

Arctic Over-the-Horizon Radar (A-OTHR) Project

• On March 18, 2025, the Prime Minister announced Canada’s intention to partner with the Government of Australia on advanced A-OTHR technology.
• On June 20, 2025, Canada and Australia signed a technology partnership to advance collaboration to rapidly develop Canada’s A-OTHR capability.
• The first stage of the A-OTHR program will deliver an initial capability by the end of 2029.
• This system will provide advanced early warning and long-range surveillance, enable faster CAF detection and tracking of a wide range of threats in our Northern air and maritime approaches, while strengthening NORAD domain awareness.

Polar Over-the-Horizon Radar (P-OTHR) Project

• National Defence is conducting research and development into the P-OTHR capability, which will further extend surveillance coverage for early threat identification and warning.
• In April 2025, the Government of Canada awarded a two-year contract, valued at $48.4 million, to a joint venture between ATCO Frontec Ltd and Inuvialuit Development Corporation to design, build, install, and operate the P-OTHR research and development data collection system in the Northwest Territories.

The Canadian Coast Guard (CCG) Presence in the Arctic

• The CCG Arctic Region has grown to more than 130 full-time employees dedicated to program delivery in the Arctic, with over 50% of its employees based in the North.
• The CCG Arctic Region is headquartered in Yellowknife, NT, and includes a base in Hay River, NT, and a Marine Communications and Traffic Services Centre in Iqaluit, NU, which operates from mid-May to mid-December.
• Canadian Coast Guard Auxiliary (CCGA)
  • The CCGA is a volunteer organization supporting the CCG mandate in high traffic and remote waters, including in the Arctic where it has undergone tremendous expansion in recent years.
  • Prior to 2015, the CCGA operated nine community-based units in the Arctic; currently, there are 21 community-based CCGA units with 576 members and 61 vessels.
  • This expansion has strengthened local marine response capacity, including maritime and search and rescue.
• Arctic Marine Response Station (AMRS), Rankin Inlet, NU
  • The AMRS is the CCG’s first and only search-and-rescue facility in the Arctic, improving maritime safety in the western Hudson and James Bay.
  • The station operates seasonally from approximately June to November.
• CCG Arctic Region’s Marine Environmental and Hazards Response (MEHR) team
  • Has enhanced the Agency’s footprint across the Canadian Arctic with staffed facilities in Iqaluit, Yellowknife and Hay River, NT.
  • It also placed equipment caches in 48 communities augmenting primary response capacity for spills.
  • Community caches save significant time and resources to support effective regional response to marine pollution incidents while larger equipment is mobilized from depots, CCG fleet, or industry.
• Polar Icebreakers
  • On March 8, 2025, two contracts totaling $6.4 billion with Vancouver Shipyards and Chantier Davie was announced for the construction of two Polar Icebreakers expected to be delivered in 2030 and 2031.
  • This will enable a sustained year-round Arctic presence and strengthen the CCG’s capacity to deliver critical services in the North, including icebreaking, search and rescue, environmental response, and support to hydrographic services.
• Arctic Offshore Patrol Ships (AOPS)
  • Two Arctic Offshore Patrol Ships are under construction for the CCG. The first vessel was launched on April 28, 2026 and expected to be delivered within 2026 and 2027.
  • They will provide further flexibility for the CCG to operate in Northern and Arctic waters, including enabling opportunities for cooperation and exercises with the Royal Canadian Navy.
• Program Icebreakers (PIB)
  • In 2019, Canada announced the procurement of up to six PIB to replace CCG’s fleet of existing heavy and medium icebreakers.
  • Initial design work on the PIB is advancing with Chantier Davie Canada Inc. under an ancillary contract that was awarded in March 2024.
• Multi-Purpose Icebreakers (MPI)
  • Pre-construction work is underway at Vancouver Shipyards to build up to 16 MPI, with construction of the first ship planned to begin in 2027.
• The Strengthening Canada’s Immigration System and Borders Act (formerly Bill C‑12; Royal Assent received on March 26, 2026) expands the CCG’s services to include security activities. This change, alongside further investments, will enhance Arctic Maritime Domain Awareness, improve intelligence, surveillance, and reconnaissance capabilities, and enable Arctic security patrols and interoperability with defence and security partners.

International Cooperation

• National Defence maintains strategic-level collaboration with Arctic Allies and partners through regular multilateral policy dialogues such as the Northern Defence Dialogue at the Defence Ministerial level, the Arctic Chiefs of Defence meetings, the Arctic Security Forces Roundtable, the Arctic Security Policy Roundtable, and the Arctic Council.
• National Defence has increased information sharing and joint training opportunities with Arctic and non-Arctic partners, including through North Atlantic Treaty Organization’s NATO’s enhanced Vigilance Activity ARCTIC SENTRY.
• National Defence and the CCG are also collaborating with other government departments in the Icebreaker Collaboration Effort, or ICE Pact. This strategic trilateral partnership between Canada, the United States, and Finland is designed to deepen Arctic national and economic security cooperation by strengthening marine industrial capacity and accelerating the development of best-in-class icebreaking and polar capabilities.
  • The partnership was formalized in November 2024 through the signing of a Memorandum of Understanding and reinforced with the signing of a Joint Statement of Intent in November 2025.
• The CCG collaborates with other Arctic states on maritime search and rescue and environmental response training, and Arctic operations through the Arctic Coast Guard Forum and Arctic Council’s Emergency Prevention, Preparedness, and Response Working Group.
• In December 2025, the CCG signed a letter of intent with the Icelandic Coast Guard to formalize a shared commitment to cooperation and collaboration on coast guard operations.
• CCG agreements with Denmark and Norway
  • Letter of Intent (2020) with Danish Joint Arctic Command.
  • Two Cooperation Agreements (2024, 2017) with the Norwegian Coast Guard and the Norwegian Coastal Administration.
• Defence Research and Development Canada is an active participant in the International Cooperative Engagement Program for Polar Research with several Arctic nations. They conduct collaborative research and development activities relevant to defence and security operations in Polar Regions.

Arctic Infrastructure Fund – Defence perspective

• Announced in Budget 2025, the Arctic Infrastructure Fund, led by Transport Canada, will invest $1 billion over four years, starting in fiscal year 2025-26, in major transportation projects in the North with dual-use applications for both military and civilian purposes, including airports, seaports, all-season roads, and highways.
• These investments will advance shared priorities by supporting National Defence operational readiness while meeting the infrastructure needs of Northern and Indigenous communities.
• Projects under this fund will focus on critical enablers such as transportation, energy, and communications, which are essential for sustaining operations and strengthening resilience in the Arctic.
• National Defence is working closely with other government departments to ensure that dual-use infrastructure investments complement mobility, logistics, and situational awareness requirements, reinforcing Canada’s sovereignty and security posture in the North.

• In June 2022, National Defence announced $38.6 billion (on an accrual basis over 20 years) to modernize key Canadian capabilities in support of the North American Aerospace Defense Command (NORAD).
• These investments include:
  • $6.96 billion to modernize surveillance systems, especially in Canada’s northern approaches;
  • $4.13 billion to improve threat identification and response speeds through upgrades to command, control, and communications systems;
  • $6.38 billion to strengthen our ability to deter and defeat aerospace threats by modernizing air weapon systems;
  • $15.68 billion to ensure the Canadian Armed Forces can deploy and sustain a strong military presence across the country, including in Canada’s North, through investments in infrastructure and support capabilities; and
  • $4.23 billion to future-proof our capabilities to defend North America through investments in science and technology.

• Beyond the North American Aerospace Defense Command (NORAD) modernization investments announced in 2022, Canada is also renewing its air fleets and acquiring new capabilities that will support NORAD’s missions:
  • Strong, Secure, Engaged announced major procurement projects relevant to NORAD that are currently in the implementation stage, including the Future Fighter Capability Project (CF35s), Canadian Multi-Mission Aircraft (CP8A maritime patrol aircraft), Strategic Tanker Transport Aircraft (CC330), and Remotely Piloted Aircraft Systems (MQ-9B).
  • Our North, Strong and Free provided $103 billion (cash basis) in new funding and announced new maritime sensors, a new fleet of Airborne Early Warning and Control aircraft and committed to strengthening Canada’s contribution to the Integrated Air and Missile Defence of North America.
  • As part of the Government of Canada’s $9 billion plan (cash basis) announced in June 2025 to rebuild, re-arm and reinvest in the Canadian Armed Forces (CAF), Canada is also supporting key capabilities such as the Joint Counter-Drone Program.

Defending, Building, and Transforming the North

• On March 12, 2026, Prime Minister Carney announced several measures, including:
  • Two new Northern Operational Support Hubs at Whitehorse and Resolute, and two new Northern Operational Support Nodes at Cambridge Bay and Rankin Inlet, backed by an investment of $2.67 billion previously announced for the full project through Our North, Strong and Free to deploy rapidly and support year-round response across the North and Inuit Nunangat, no matter how remote.
  • The Government of Canada is investing $294 million in Arctic airport upgrades, including runway and terminal improvements at Rankin Inlet and Inuvik, to support larger aircraft, enable year‑round access, and strengthen both NORAD operations and Northern community connectivity. These investments complement planned upgrades to Forward Operating Locations in Inuvik, Yellowknife, Iqaluit, and Deployed Operating Base Goose Bay to enable 5th‑generation, networked, pan‑domain continental defence.

CAF Contribution to the North American Aerospace Defense Command

• Canada contributes fighter aircraft, bases, air-to-air refuelers, Forward Operating Locations, and approximately 1,000 personnel in support of the NORAD mission throughout North America.
• Canada manages and operates the Canadian portion of the North Warning System (NWS), a chain of radar stations stretching from Alaska to Labrador. An Inuit majority-owned company, Nasittuq, is under contract to assist with the management of the 47 Canadian NWS radar sites.
• Canadian NORAD Region headquarters in Winnipeg, Manitoba, provides operational control of assets assigned to NORAD in Canadian airspace.
• The Canadian Air Defence Sector in North Bay, Ontario, provides tactical command and control of assets in the Canadian Sector. Canada demonstrates its capabilities and commitment to NORAD through binational operations and exercises, such as Operation NOBLE DEFENDER, a recurring, year-round defensive training operation.

Arctic Over-the-Horizon-Radar (A-OTHR)

• In March 2025, the Prime Minister announced Canada’s intention to partner with Australia on advanced Over-the-Horizon Radar (OTHR) technology formalized through a bilateral technology partnership signed in June 2025 to accelerate development of Canada’s A‑OTHR capability.
• Based on Australia’s Jindalee Operational Radar Network (JORN) technology and adapted for Northern operating conditions. A-OTHR will provide advanced early warning and long‑range surveillance, enabling faster CAF detection and tracking of air and maritime threats, while strengthening NORAD domain awareness in the defence of Canada and North America.
• Stage 1 is expected to deliver an initial capability by end of 2029, with full operational capability—comprising two full‑scale radar systems—anticipated by 2043. Work is underway to accelerate the path to full capability.
• In March 2026, the Prime Ministers of Canada and Australia issued a joint statement reaffirming their commitment to collaborate on the development of OTHR development, combining Australia’s world-leading JORN technology with Canada’s expertise in high-frequency radar operations in the Arctic.

Industry Benefits for A-OTHR

• Canada’s Industrial and Technological Benefits Policy will apply to the A-OTHR project. Australian industry partners will work with Canadian companies to build expertise and capacity in Canada, grow our domestic defence industry, support high-paying Canadian jobs, and help Canada scale up its own radar system.
• Canada intends to work with the Government of Australia to further develop OTHR technology to our mutual advantage and will work closely with the United States to ensure the interoperability of domain awareness solutions for the defence of North America.

A-OTHR Siting and Public Reaction

• A‑OTHR will be based in Southern Ontario. As part of Stage 1, National Defence announced on July 17, 2025 the selection of a transmit site in Kawartha Lakes and a receive site in Clearview Township. Initial work at the Kawartha Lakes site is anticipated to begin in winter 2026, while site studies continue at the Clearview location.
• Since fall 2025, several news articles have reported concerns from farmers and other residents of Clearview Township regarding National Defence’s plan for the new radar site. In media reports from the Ottawa Citizen, CBC, and CTV News, locals have questioned why the capability cannot be located at nearby CAF properties instead, such as the Meaford Training Centre or Canadian Forces Base Borden.
• A‑OTHR siting is driven by a set of complex and inflexible operational and technical requirements, including parcel size, latitude, orientation, minimum separation between sites, environmental conditions, and surrounding land use.
• Potential sites must be located in remote, flat, and dry areas; have limited environmental constraints; be sufficiently distant from sources of radio interference; and have access to reliable electrical power.

Strategic Tanker Transport Capability Project

• The Government of Canada is acquiring a new fleet of aircraft to replace the CC150 Polaris. Known as the CC330 Husky, this new fleet will be comprised of nine aircraft (a mix of four new and five used A330-200) and will conduct multiple tasks such as in-flight refuelling of other aircraft, military personnel and cargo airlift, medical evacuations, and strategic transport of Government of Canada officials.
• This new aircraft will improve the flexibility, responsiveness, interoperability with allied nations, communications security, and self-protection of the Royal Canadian Air Force’s current fleet.
• The project will acquire an in-service support solution for the aircraft, as well as infrastructure to house and maintain the fleet at two main operating bases located at 8 Wing, Trenton and the Edmonton International Airport, respectively. Additionally, the project will provide a training and simulation capability to prepare and maintain crew readiness.

• Our North, Strong and Free: A Renewed Vision for Canada’s Defence highlights the growing air and missile threats facing Canada, and the need to make further contributions to the integrated air and missile defence of Canada and North America. Work is ongoing to identify additional investments that will contribute to enhancing Canada’s integrated air and missile defence posture.
• Through Budget 2025, the Government of Canada proposed defence spending of $81.8 billion in cash over five years. This includes the $9 billion increase in defence spending for fiscal year 2025-26, announced on June 9, 2025, which will be leveraged in part to develop and procure capabilities relevant to integrated air and missile defence such as Over-the-Horizon Radar and ground-based air defence systems, in addition to developing more robust counter-uncrewed aerial systems (C-UAS, or counter-drone) capabilities for National Defence.
• The Prime Minister has removed all restrictions on Canada’s participation in ballistic missile defence. This will allow Canada to modernize its approach to protecting Canadians and strengthen integrated air and missile defence capabilities against evolving threats.

Future and Committed Capabilities

• Canada has committed to acquiring capabilities that will significantly increase our ability to detect, deter and defend against air and missile threats, including:
  • Terrestrial and space-based sensing capabilities (including Over-the-Horizon Radar);
  • New F-35 fighters;
  • Advanced command and control systems;
  • Airborne Early Warning and Control aircraft;
  • Drones and Counter-Uncrewed Aerial Systems capabilities;
  • River-class destroyers; and,
  • The creation of a Joint Counter-Drone Program.
• Canada has also committed to exploring options for ground-based air defences to protect critical infrastructure.
• The removal of Canadian restrictions on missile defence in July 2025 opened opportunities for further capability development and procurement to deter and defend against air and missile threats, while reinforcing Canada’s contribution to North American defence.

Integrated Air and Missile Defence (IAMD)

• IAMD is an approach that aims to group all aspects of missile defence (e.g. command, control, communications and battle management (C3BM), digital infrastructure, sensors and effectors (interceptors) under a holistic system of systems architecture.
• Instead of having distinct systems for each type of threat, such as ballistic missile defence systems to address ballistic missiles, IAMD seeks to eliminate the seams between siloed systems that our adversaries can exploit.
• In the context of the war in Ukraine and growing aerospace threats to the Alliance, IAMD has become a top priority at North Atlantic Treaty Organization (NATO), as illustrated by the publication of the NATO IAMD policy on February 13, 2025. In June 2025, NATO Secretary General, Mark Rutte, announced that members needed to increase their air and missile defences by 400%. The conflict in the Middle East has demonstrated the importance of integrated air and missile defence capabilities to defend critical infrastructure.

United States “Golden Dome” Initiative

• On January 27, 2025, the President of the United States (U.S) signed the executive order directing the implementation of a next generation missile defence shield to defend the US from all manner of ballistic, hypersonic, advanced cruise missiles, uncrewed aerial systems (UAS), and other next-generation aerial attacks. The proposed design will integrate new and existing capabilities and is intended to be fully operational by the end of President Trump’s term. The total cost, as stated by President Trump, is estimated at approximately USD $175 billion.

Counter-Uncrewed Aerial Systems (C-UAS or counter-drone)

• National Defence is exploring options for acquiring a suite of counter-drone capabilities to ensure that Canada can neutralize and defeat drones that threaten our forces, as well as those of our Allies and partners.
• On June 9, 2025, National Defence announced its Joint Counter-Drone Program, and Budget 2025 includes $17.9 billion over five years to expand Canada’s military capabilities, including counter-drone capabilities.
• This program will work closely with Canadian companies, Allies, and partners to create and test new solutions here in Canada, thus helping to grow Canadian innovation while equipping the Canadian Armed Forces with the tools they need to stay safe and effective at home and around the world.

Cyber

• The Canadian Armed Forces Cyber Command (CAFCYBERCOM) was established in September 2024 to consolidate the military’s cyber capabilities into a single unified and dedicated entity.
• CAFCYBERCOM’s mission is to conduct joint electronic warfare, signals intelligence, full spectrum cyber operations, and capacity-building, to defend Canadian interests at home and abroad.

Artificial Intelligence (AI)

• The National Defence AI Strategy was published in March 2024, laying out a vision for the adoption and implementation of AI.
• The Department of National Defence (DND) and the Canadian Armed Forces (CAF) AI Centre officially stood up on July 29, 2024.

Quantum

• Quantum 2030 was published in March 2023 to align with Canada’s 2023 National Quantum Strategy and serves as a roadmap to ensure that the Defence Team benefits from the opportunities enabled by quantum technologies and to better prepared for the disruptive potential of quantum technologies in the realm of defence and security.

Space

• Our North, Strong and Free: A Renewed Vision for Canada’s Defence includes investments in space-based capabilities and space domain awareness: a new satellite ground station in the Arctic (Avedlek), and a comprehensive worldwide satellite communication capability.
• These investments total $222 million over 20 years for the satellite ground station, and $5.5 billion for the worldwide satellite communication capability.
• Budget 2025 also announced $182.6 million over three years for National Defence to establish a sovereign space launch capability.
• In March 2026, DND announced a 10-year, $200‑million agreement to lease for a dedicated DND/GoC launch pad with Maritime Launch Services in Canso, Nova Scotia
• As part of this commitment, the National Defence program for Innovation for Defence Excellence and Security is investing $105 million over three years in the development of responsive light-lift launch systems for small payloads by 2028-29 to accelerate Canadian space-launch-related innovation and to strengthen the foundations needed for future sovereign launch capability.
• Additionally, Security, Sovereignty and Prosperity: Canada’s Defence Industrial Strategy, designates space launch, Intelligence, Surveillance, and Reconnaissance (ISR), satellite communications, and space domain awareness as sovereign capabilities.
  • Sovereign capabilities represent priority investment areas for which the Government aims to maximize secure strategic autonomy and reduce supply chain vulnerabilities.

Canadian Armed Forces (CAF) Cyber Operations and Activities

• The growing utilization of cyberspace to further national goals and achieve military objectives, above or below the threshold of armed conflict, shows the importance of sovereign cyber capabilities for robust deterrence, foreign policy, and national security.
• National Defence is responsible for the cyber security and defence of its military systems and networks. Malicious cyber activities can exploit vulnerabilities and impact the ability to command forces, understand the battle space, and employ weapon systems.
• Since the start of the full-scale invasion of Ukraine by Russia in 2022, National Defence has enhanced its cyber defence assistance to the Armed Forces of Ukraine under Operation UNIFIER.
• In support of Canada’s Indo-Pacific Strategy, National Defence is increasing cyber defence engagement and cooperation with strategic Allies and defence partners in the Indo-Pacific region.

Hypersonic Missiles

• Technological advances have increased the threat posed to Canada by missiles. Hypersonic technology enables missiles to move at faster speeds than ever and in unpredictable patterns, making them much harder to detect and intercept.
• In June 2022, National Defence announced Canada’s plan to modernize the North American Aerospace Defense Command (NORAD) over the next two decades. This included investments in research to better understand emerging missile threats, like hypersonic missiles, and develop defence systems, including sensors and tools for detection, monitoring, and targeting, as well as countermeasures.
• In November 2024, Canada and Australia announced their intent to collaborate on research related to emerging missile threat defence, including advanced cruise missiles and hypersonic weapons. Under this agreement, Defence Research and Development Canada (DRDC) is working with its Australian counterpart, Defence Science and Technology Group (DSTG), to understand emerging missile threats, and develop detection, monitoring, targeting, and counter-measure technology.
• Our North, Strong and Free commits to further contributions to the integrated air and missile defence of Canada and North America, considering the growing prevalence and sophistication of airborne threats, including hypersonic weapons.

Uncrewed Systems

• Small drones are now being manufactured at high volume and low cost and are changing the nature of warfare. They are being used for reconnaissance and striking targets, and, in some instances, low-cost drones have been used to destroy multi-million-dollar platforms.
• National Defence is working to counter these threats, while simultaneously seeking to deploy its own robust Unmanned Aerial Systems (UAS) and Unmanned Underwater Vehicles (UUV) capabilities.
• The NORAD Modernization project identified counter-UAS research as a priority area, provided funding to DRDC to prototype counter-drone countermeasures and sensor technologies.
• Notably, DRDC’s Innovation for Defence Excellence and Security (IDEaS) program hosted its first urban-focused Counter-Uncrewed Aerial Systems (CUAS) trial in downtown Ottawa in 2025. Working with CAF, Royal Canadian Mounted Police (RCMP), and United States partners, National Defence evaluated evolving detection technologies to strengthen urban drone threat response.
• The upcoming CUAS Sandbox 2026 (September–October, Suffield) will advance both detection and defeat capabilities for micro and mini drones, with a focus on integration into CAF command-and-control systems.
• Further, Canada is acquiring 11 long-range, armed remotely piloted aircraft (MQ-9B Reaper) that will help the CAF monitor Canada’s vast territory at home and support operations abroad. The first delivery is anticipated in 2028, with full operational capability by 2033.
• Canada has also committed to investing $1.4 billion over 20 years to acquire specialized maritime sensors for ocean surveillance to defend Canada against growing underwater threats, including vessel-launched missiles, UUVs, ships, and submarines.
• In Our North, Strong and Free, National Defence committed to exploring options for acquiring additional surveillance and strike drones, as well as counter-drone capabilities.

Budget: $27.7 billion

• The acquisition budget includes 88 F-35 jets, associated training, support equipment, sustainment set-up and services, and the construction of Fighter Squadron Facilities in Cold Lake, Alberta, and Bagotville, Quebec.

Timeline

• Delivery of initial eight aircraft: 2026-2027 to Luke Air Force Base, Arizona, for the training of Canadian pilots.
• First Aircraft Arrival in Canada: late 2028 to Canadian Forces Base Cold Lake.
• Initial Operational Capability: 2029.
• Full Operational Capability: 2033.

CF-18 Hornets

• The CF-18 Hornet fighter fleet will continue to be assigned missions under Government of Canada commitments to the North American Aerospace Defense Command and the North Atlantic Treaty Organization until the retirement of the fleet in 2032.

Main Estimates 2026-27

• In the 2026-27 Main Estimates, National Defence is requesting $1.1 billion, excluding statutory, for the Future Fighter Capability Project and $129.1 million for associated in-service support (ISS).

F-35 Procurement Review

• On March 14, 2025, Prime Minister Carney announced a review of the F-35 acquisition to determine whether it remains the best choice for Canada.
• The review considers operational needs, North American Aerospace Defense Command (NORAD) and North Atlantic Treaty Organization (NATO) commitments, industrial benefits, strategic partnerships, and potential alternatives considering current domestic and global realities.

Fleet Replacement

• Canada’s current fighter fleet, the CF-18 Hornet, has already begun its retirement and will be entirely removed from service by 2032.
• This means that the replacement capability must be delivered and fully operational by 2032 to avoid a critical capability gap.
• The planned F-35 acquisition delivery schedule has been coordinated with the phased retirement of the CF-18 to minimize operational impacts during the transition.

Joint Strike Fighter Program (JSF) Production, Sustainment and Follow-on Development (PSFD) MOU

• The JSF Program is a multinational cooperative effort to build an advanced combat aircraft equipped to fulfill multiple roles.
• The F-35 was developed and continues to be operated and sustained as a joint/coalition platform, built on strong partnerships with the United States, NATO Allies and partner nations across the globe.
• The program operates under well-established agreements that include maximizing commonality to achieve affordability and coalition interoperability; implementing a global sustainment system to deliver continuous cost and performance improvements; and promoting industrial involvement for participants.
• Canada has been an active participant in the JSF Program since it began in 1997, and in 2006 became a partner in the PSFD MOU, which expires in December 2051.
• Eight partner countries cooperate under the PSFD MOU: Australia, Canada, Denmark, Italy, Netherlands, Norway, United Kingdom, and the United States.
• In addition to the eight partner countries, there are 12 countries purchasing the F-35 through the United States Foreign Military Sales Program: Belgium, Finland, Germany, Israel, Japan, South Korea, Poland, Singapore, Switzerland, Czechia, Greece, and Romania.
• The total F-35 orders of these 20 nations are anticipated to exceed 3,600 jets.

Economic Benefits

• As a partner in the F-35 program, Canada has access to industrial participation in production of the aircraft.
• To date, over $3.6 billion USD (˜$5.2 billion CDN) in contracts has been awarded to over 110 Canadian companies involved in the production and supply chain of the F-35.
• Currently, 37 Canadian companies have F-35 contracts, including Magellan Aerospace in Manitoba (horizontal tail assembly), GasTops in Ontario (engine sensors), and Heroux-Devtek in Quebec (landing gear components).
• Each F-35 aircraft coming out of the production line contains approximately $2.2 million USD (˜$3.3 million CAD) of Canadian-made components.
• The acquisition and initial sustainment of the F-35 project have the potential to contribute over $425 million annually to Canada’s gross domestic product and maintain 3,300 jobs annually for Canadian industry and value chain partners (direct and indirect).
• In addition, over 1,000 jobs will be generated by the significant construction initiatives in Cold Lake and Bagotville.
• Total construction investment for the two Fighter Squadron Facilities in Bagotville and Cold Lake is valued at approximately $2.5 billion.
• More jobs are anticipated as repair overhaul facilities are stood up and infrastructure upgrades progress on other operating locations across Canada to support extended F-35 operations.
• Further work to upgrade infrastructure, hangars, runways and services at these two bases and other operating locations is valued at approximately $10.2 billion.
• The procurement is expected to generate additional opportunities and jobs for Canadian industry to integrate into the global supply chain, which will support a fleet of over 3,600 aircrafts worldwide.
• In November 2024, the Government of Canada announced that L3 Harris MAS of Mirabel, Quebec, was identified as its strategic partner to work with Canada and the F-35 Joint Program Office to investigate requirements for an F-35 air vehicle maintenance, repair, overhaul, and upgrade facility, also known as an air vehicle depot. In April 2026, a Memorandum of Understanding was signed between Lockheed Martin and L3 Harris MAS to explore additional opportunities for L3 to support the F-35 Program.

Project Name: Airlift Capability Project – Multi-Role Flight Service (ACP-MFS)

Project Value: $2.05 billion

• The 2026-27 Main Estimates includes $734.1 million in new funding for ACP-MFS.

Contract Value: $753 million with Bombardier Inc. for six new Global 6500 aircraft

Contract Type: Non-competitive

Timelines:

• Contract Award: December 12, 2025
• Delivery of first aircraft: Summer 2027
• Initial Operational Capability: end of 2027
• Full Operational Capability: 2032

2026-27 Main Estimates

• The Main Estimates include $734.1 million in new funding for the Airlift Capability Project – Multi-role Flight Service.

Airlift Capability Project

• Through the Airlift Capability Project – Multi-Role Flight Service, the Royal Canadian Air Force (RCAF) is acquiring a new fleet of six new Global 6500 aircraft to replace and modernize the capabilities currently provided by its CC-144 Challenger fleet.
• These new aircraft will increase the capacity of the RCAF to support administrative flight services for senior Government of Canada leaders and provide utility flight services in support of Canadian Armed Forces (CAF) operations and missions.
• This project has replaced the previous Challenger Consolidation Project, which was linked to Strong, Secure, Engaged initiative #54: “recapitalize or life-extend existing capabilities in advance of the arrival of next generation platforms”.
• Through the Industrial and Technological Benefits Policy, including Value Proposition, this contract will reinforce Canada’s expertise in the strategic areas of aerospace and defence, strengthen our defence industrial base, and create economic opportunities across the country.
• Non-Competitive Contract:
  • A non-competitive contract was determined to be the most practical course of action, ensuring the new fleet gets delivered in a timely manner while also providing the best value to Canadians.
• National Security Exception (NSE):
  • As the aircraft delivered through this project will be used to transport senior Government of Canada leadership who are essential to national defence and security, it was determined that the National Security Exception will be invoked for this procurement.
  • This limits which suppliers could deliver the aircraft and ensures that highly sensitive and/or classified information related to the aircraft, its design, and its systems are protected, helping to mitigate potential risks and maintain security of the platform.
• Like the CC-144 Challenger fleet, the Global 6500 fleet will be operated by 412 Squadron based out of the Ottawa International Airport.
• This project will provide the necessary infrastructure required to maintain and store the new aircraft.

Global 6500 Aircraft

• The Global 6500 aircraft is a Canadian manufactured platform that meets all the operational requirements of the Royal Canadian Air Force.
• The fleet will be equipped with modern technology to address obsolescence issues, and will provide increased range and passenger capacity, helping to reduce operating costs and greenhouse gas emissions.
• As a proven commercial off-the-shelf design, the new Global 6500 fleet will not be delayed by developmental work, ensuring the aircraft are delivered and ready to support operations in a timely manner.
• The new aircraft will potentially be equipped with a self-protection system, secure communications, Mode 5 military friend-or-foe identification system (IFF) and military global positioning system (GPS).

Current CC-144 Challenger Fleet

• Challenger fleet size: 4 aircraft
  • 2 acquired in 2002 (604 model); and
  • 2 acquired in 2020 (650 model).
• As the entire CC-144 Challenger fleet is becoming increasingly obsolete, upgrades are required to modernize its capabilities, maintain technological relevance, and comply with new airworthiness and regulatory requirements.
• The existing CC-144 Challenger fleet will continue to support operations as we transition to the new Global 6500 fleet in the future.
• Following the gradual retirement of the airframes, they will be declared surplus.
• Once declared surplus, various options – including, donation, sale, possible alternate use within CAF (e.g. for training or display purposes) or destruction – will be considered.

Domestic Production and the Munitions Supply Program (MSP)

• The MSP was established by the Government of Canada in the 1970s to maintain domestic capability to produce select high-volume operational and training military munitions in Canada.
• The five companies comprising the MSP are:
  • General Dynamics – Ordnance and Tactical Systems (GD-OTS), with three locations in Quebec, is the designated Centre of Excellence for ammunition, propellant, and explosives;
  • Colt Canada, based in Ontario, is the Centre of Excellence for small arms;
  • IMT Precision (previously IMT Defence), with three locations in Ontario, is the Centre of Excellence for the manufacturing of projectile bodies;
  • Magellan Aerospace, located in Winnipeg, Manitoba, is the Centre of Excellence for rockets, illumination flares, and rocket propellants; and
  • HFI Pyrotechnics Inc., based in Prescott, Ontario, is the Centre of Excellence for pyrotechnic technology.
• Approximately 30% of the Canadian Armed Forces in-service ammunition is sourced domestically through the MSP, helping ensure a reliable Canadian supply for specific munitions.
• National Defence has secured $34 million in domestic ammunition contracts over and above the standing MSP contracts, with $22.7 million expended to date.
• Expanding sovereign ammunition production will help secure critical materials, reduce reliance on foreign suppliers, and strengthen Canada’s overall defence readiness.

Munitions Supply Program (MSP)

• Prior to 1946, the Government of Canada owned and operated several munition plants; these facilities were privatized in the 1960s and 1970s.
• The MSP was created in 1974 to sustain a long-term, viable domestic munitions production capability in Canada.
• The MSP operates through Strategic Source Agreements under which selected companies are designated Strategic Sources of Supply and Centres of Excellence in their areas of specialization. They include:
  • General Dynamics — Ordnance and Tactical Systems (GD-OTS) — Quebec’s Centre of Excellence for ammunition, propellant, and explosives;
  • Colt Canada — Ontario, Centre of Excellence for small arms;
  • IMT Precision — Ontario, Centre of Excellence for projectile bodies;
  • Magellan Aerospace — Manitoba, Centre of Excellence for rockets, illumination flares, and rocket propellants; and
  • HFI Pyrotechnics Inc. — Ontario, Centre of Excellence for pyrotechnic technology.
• These MSP partners must maintain domestic manufacturing capability and provide Canada with “first-in-line” status production.
• National Defence is currently working on several initiatives to leverage the MSP to accelerate the processes behind procurement and delivery of munitions.
• This includes improved forecasting of demand, with better analytics for improved coordination across the Canadian Armed Forces (CAF), as well as supply chain illumination to better understand how to onshore the various component parts of ammunition.
• Additionally, Canada is investing MSP partners to develop sovereign capability to:
  • Manufacture extended range large calibre (M795) projectile bodies;
  • Manufacture extended range large calibre load-assemble-packs; and
  • Manufacture propelling charge (Modular Artillery Charge System, or MACS) load-assemble-packs.

Canadian Defence Industry Resilience (CDIR) Program

• Managed by National Defence, the CDIR Program will provide funding to Canadian businesses to increase their production capacity for the development of defence-related sovereign capabilities and critical supply chain vulnerabilities.
• The Program is an initiative under the Defence Industrial Strategy (DIS), which aims to build a more resilient, innovative, and sovereign defence industrial base. Through the DIS, National Defence is working closely with Canadian industry to ensure that Canada can develop, produce, and sustain the capabilities required by the CAF over the long term.
• The CDIR Program aligns with federal priorities, including the Buy Canadian Policy, which promotes the use of Canadian goods and services in government-supported initiatives. The objectives of the program are to support the defence of Canada by:
  • Supporting the Canadian defence industry to expand domestic production capability and capacity of goods and services, component parts and raw material, important to the Canadian industry; and
  • Improving the resiliency of the Canadian industry supply chain for component parts and raw material, including critical minerals.
• The funding that will be available to the Canadian defence industry through the CDIR Program is also expected to help create skilled jobs for Canadian workers for the long term and generate economic benefits for Canadian communities.
• On March 18, 2026, the Minister of National Defence announced an investment of $1.4 billion to expand Canada’s domestic ammunition production capacity, including:
  • Up to $305.4 million in financial assistance to IMT Precision in Ingersoll, Ontario to establish a new manufacturing facility capable of producing empty metal shells for more modern and effective 155mm artillery projectiles; and
  • Three contribution agreements awarded to GD-OTS, including:
    • $355.7 million to construct a nitrocellulose facility;
    • Up to $57.9 million to establish Canada’s first facility capable of loading, assembling, and packing M231/232 charges used in 155mm artillery; and
    • Up to $642 million to establish a manufacturing facility to load, assemble, and pack 155mm High Explosive projectiles.

Other Recent Investments and Production Initiatives

• In February 2023, Canada awarded $4.8 million to IMT Precision to increase production of 155mm M107 projectile bodies, raising output from 3,000 to 5,000 rounds per month.
• In March 2024, National Defence awarded $4.4 million through the Innovation for Defence Excellence and Security program to GD-OTS Canada and IMT Precision to support modernization of 155mm ammunition production through automation and new materials.
  • IMT was awarded a contribution agreement ($455,872) to develop a production line concept for 155mm projectile bodies, using advanced manufacturing and inspection techniques. IMT concluded this project in 2024, providing CAF with increased understanding of potential capability to produce modern, advanced projectile production. Through this effort IMT demonstrated methods to optimize their production processes while increasing flexibility to meet changing requirements.
  • GD-OTS Canada (Repentigny) was awarded a contribution agreement ($1,968,825) to investigate automating key areas of production of 155mm projectiles, such as casting and solidification processes, inspecting for defects using an X-ray, and transporting materials using automated guided vehicles. The project was completed in 2026.
  • GD-OTS Canada (Valleyfield) was awarded a contribution agreement ($2,019,959) to demonstrate the capability to manufacture a combustible cartridge case for the 155mm Howitzer, including developing the expertise and pre-engineering study to manufacture combustible cartridge cases for Canada’s needs. It is anticipated this work will be completed in 2026.
• Engineering work continues with domestic companies to accelerate establishment of new artillery ammunition production capacity for North Atlantic Treaty Organization (NATO) standard munitions.
• On June 9, 2025, the Government of Canada announced an additional $9 billion in defence funding for fiscal year 2025-26, including support for domestic ammunition production and industrial capacity.

Current Domestic Capacity and Limitations

• Approximately 30% of CAF in-service ammunition is sourced domestically through the MSP.
• For certain ammunition types where licensing or domestic production is not feasible, Canada relies on foreign suppliers.
• Canada and Canadian industry do not possess modern ammunition intellectual property (IP), limiting independent production and export options.
• Bringing ammunition supply chains to Canada is challenged by IP restrictions, limited domestic production volumes, human resource constraints, and capital-intensive processes.
• Canada also faces challenges securing critical raw materials and sustaining long term production without significant additional investment.

NATO Air Battle Decisive Munitions (ABDM) Framework

• Canada joined NATO’s ABDM framework in April 2024.
• The ABDM framework aggregates allied munitions requirements into multinational procurements, improving cost efficiency, accelerating delivery timelines, and enhancing stockpile interoperability.
• Participation supports NATO deterrence and expands options to support Ukraine’s defence needs.

Role of Research and Development

• Defence Research and Development Canada continues to foster innovation by conducting research and development into improving munitions and related materials with the objective of providing the CAF with scientific advice and future capability options.

Domestic Arctic Mobility Enhancement (DAME)

• In the 2026-2027 Main Estimates, National Defence is requesting $8.1 million, excluding statutory, for the DAME project. Procurement will be managed by the Defence Investment Agency to support faster and more streamlined defence acquisitions.
• Initial Operating Capability is planned for 2030-2031, with Full Operating Capability planned for 2031-2032.

Long Range Precision Strike (Land) - High Mobility Artillery Rocket System (HIMARS)

• In the 2026-2027 Main Estimates, National Defence is requesting $31.5 million, excluding statutory, for the Long Range Precision Strike (Land) project.
• HIMARS is produced by Lockheed Martin Missiles and Fire Control. It is not commercially available and can only be acquired through the United States’ (U.S.) Foreign Military Sales (FMS) program.
• The sale includes 26 HIMARS launchers, various long-range missiles and training rockets, initial spares, training, and support services.
• Estimated project acquisition cost of up to $2.6 billion.

Domestic Arctic Mobility Enhancement (DAME)

• The DAME project will provide the Canadian Armed Forces with a modern, Arctic‑capable platform able to operate year‑round, independently, and for extended periods across snow, ice, and complex terrain.
• It will replace the current BV206 fleet with a new Arctic mobility capability consisting of a fleet of medium-sized, amphibious, high mobility carriers.
• The project intends to deliver up to 170 vehicles in four variants: Command Post, Troop Carrying, Cargo and Equipment Carrying, and Ambulance. It includes a quantity of trailers proportional to the support needs of the fleet.
• A Request for Information closed on September 25, 2025.

Long Range Precision Strike (Land) Overview

• A long-range missile capability was identified as a priority in Canada’s 2024 defence policy, Our North, Strong and Free and in the Canadian Army’s modernization strategy, Inflection Point 2025.
• The High Mobility Artillery Rocket System (HIMARS) will equip the Canadian Army with an enhanced long-range strike capability that can shoot at threats at distances up to 300 kilometers and beyond. This represents an increase from the current 30-kilometer range, revolutionizing the way the Canadian Army conducts strike operations.

Timeline for HIMARS

• Canada submitted a Letter of Request to the United States (U.S.) government in December 2024 requesting acquisition under the Foreign Military Sales (FMS) program.
• On October 1, 2025, the U.S. Department of State approved the sale to Canada. The U.S. Letter of Offer and Acceptance was received at the end of December, then reviewed and signed by Canadian authorities on January 6, 2026.
• The first payment of USD $250 million towards the sale was confirmed by the U.S. government on January 12, 2026.
• Initial Operating Capability is scheduled for 2030 with Full Operating Capability by 2034.

Canadian Patrol Submarine Project (CPSP)

• On July 10, 2024, Canada announced it was launching a process to acquire up to 12 conventionally powered, under ice-capable submarines.
• A Request for Information was released on September 16, 2024 to support early industry engagement.
• On August 26, 2025, the Government of Canada identified German company TKMS (previously known as Thyssen Krupp Marine Systems) and Republic of Korea company Hanwha Ocean Co., Ltd. as the two Qualified Suppliers for the CPSP, following a comprehensive assessment of Canada’s operational and delivery requirements.
• In November 2025, Qualified Suppliers received instructions to submit formal proposals.
• A contract is anticipated to be awarded no later than 2028, following the evaluation of formal proposals submitted on March 2, 2026.
• On March 6, 2026, National Defence issued a further Request for Information to solicit input from Canadian industry on the development of a modern, sovereign, resilient, and Canadian-led submarine sustainment enterprise.
• Delivery of the first Canadian Patrol Submarine is required no later than 2035.

Victoria-class Modernization

• Modernisation work on His Majesty’s Canadian Ship (HMCS) Victoria, HMCS Windsor and HMCS Corner Brook is ongoing and is expected to be completed in the early 2030s.
• The Victoria-class Modernization (VCM) projects continue to be assessed to ensure value for money.

• Established in 2021, the Canadian Patrol Submarine Project (CPSP) supports timely decision-making on a successor submarine fleet and mitigates the risk of a capability gap.
• The key submarine capability requirements are delivery timelines, range‑endurance‑persistence, Arctic capability, and lethality.
• Canada has engaged with other governments and militaries to exchange lessons learned and to gain insights into their respective submarine acquisitions, infrastructure and sustainment programs.
• These engagements have been instrumental in shaping the CPSP acquisition process, including the accelerated supplier qualification completed in August 2025 and the proposal process launched in November 2025. Lessons from Allies and other Canadian defence procurements also informed the CPSP evaluation criteria, which prioritize a sovereign sustainable fleet of submarines that meet Royal Canadian Navy requirements and encourage suppliers to deliver meaningful economic benefits for Canada.
• National Defence is working with federal partners to determine the most suitable contracting option. A preferred supplier will be identified following the evaluation of proposals.

Victoria-class Modernization (VCM)

• The VCM project is focused primarily on enhancing two distinct capabilities:
  • Habitability – to improve habitability and functionality of living conditions onboard Victoria-class submarines, including improvements to increase the functionality of living spaces and washrooms.
    • Habitability improvements are being implemented on His Majesty’s Canadian Ship (HMCS) Victoria and HMCS Windsor during their ongoing Work Periods.
    • HMCS Corner Brook will have these changes implemented at its mid-cycle Docking Work Period scheduled for 2030.
    • These updates are expected to be completed on all three platforms in the early 2030s.
  • Joint Force Capability – to position the Victoria-class submarines to contribute meaningfully to joint operations ashore by increasing their ability to conduct intelligence, surveillance and reconnaissance missions.

Victoria In Service Support Contract

• The current annual maintenance cost for the four Victoria-class submarines is approximately $300-350 million.

River-class Destroyer

Total Estimated Cost Batch 1 Ships: $22.2 billion (three ships).

Project Status:

• In February 2019, Canada selected the River-class Destroyer (RCD) design, based on BAE Systems’ Type 26 Global Combat Ship. Irving Shipbuilding (ISI) it the prime contractor and has engaged Lockheed Martin Canada to lead the design team.
• Canada continues to work closely with ISI, Lockheed Martin Canada, and their subcontractors to advance ship design and systems integration.
• On March 3, 2025, the Government of Canada awarded ISI a construction contract for the first three ships, with full-rate production beginning in April 2025.
• The initial contract includes the construction, testing and sea trials, delivery of the ships and supporting elements such as training, maintenance and logistics data.
• Delivery of the first ship, the future His Majesty’s Canadian Ship Fraser, is expected in the early 2030s, with the 15th and final ship expected to be delivered by 2050.

Economic Benefits:

• The project will strengthen Canada’s industrial base through investments in innovation, supplier development, and export opportunities with a focus on the marine and cyber security sectors.

Joint Support Ships

Budget: Up to $6.09 billion

• The full-rate construction contract awarded to Vancouver Shipyards is valued at $3.4 billion.
• The Motor Vessel (MV) Asterix continues to provide interim at-sea replenishment capability until the Joint Support Ships become operational in 2028.
• The MV Asterix is a civilian vessel, owned, operated, and maintained by Federal Fleet Services a subsidiary of Chantier Davie Canada Inc.

Arctic Offshore Patrol Ships

Budget: Up to $4.98 billion (excluding taxes).

• All six Arctic Offshore Patrol Ships (AOPS) have been delivered to the Royal Canadian Navy.
• The ships have been deployed on Operations CARIBBE, HORIZON and NANOOK, have circumnavigated North America, deployed to Antarctica, and supported Canadians at home under Operation LENTUS.
  • AOPS can operate unescorted in up to one meter of first-year ice, consistent with Arctic ice conditions between June and October.
• The ships are strengthening the Canadian Armed Forces’ presence in the North, including operations in Canada’s exclusive economic zone along the Northwest Passage.
• AOPS also enhance Canada’s presence on the Atlantic and Pacific and support a wide range of international operations.

River-class Destroyer

• The River-class Destroyers (RCD) are fast, manoeuvrable, long endurance warships that will replace the retired Iroquois-class destroyers and the Halifax-class frigates. As Canada’s future principal combat ship, they will operate as a single modern class capable of responding to a wide range of threats in both open-ocean and coastal environments, including high-threat operations, littoral challenges, humanitarian assistance and sovereignty enforcement.
• The $215 million obtained through Supplementary Estimates (B) is being used to acquire spare parts, ammunition, and other key supplies for the initial three RCDs. It will also be used to develop and deliver training, so that our members are ready to operate our new ships as they come online.

Joint Support Ships

• The Protecteur-class Joint Support Ships will provide Canada with a modern, task tailored, and globally deployable naval support capability.
• The new Protecteur-class ships will have key capabilities to support naval task groups, including:
  • Re-supply fuel, ammunition, spare parts, and other supplies;
  • Facilitate the operation and maintenance of helicopters; and
  • Provide task group medical and dental facilities.
• In addition, the ships will have the following roles:
  • Sealift: capable of transporting and delivering cargo both in support of task group operations and in support to operations ashore.
  • Support to operations ashore: supporting a range of missions ashore, from combat to humanitarian and disaster relief.
  • Sensor Capabilities: equipped with systems to detect and protect against chemical, biological, radiological, and nuclear threats.
  • Task Force Capabilities: equipped with a combat management system, multiple defensive weapons systems, an electronic support measures suite, air search radar and dual shafts for enhanced redundancy.
• Supply-chain impacts resulting from COVID, as well as the volume of work associated with constructing a large “first of class” warship, impacted the production schedule. The first ship, the future His Majesty’s Canadian Ship (HMCS) Protecteur – originally slated to be delivered in 2023 - is now expected to commence sea trials in late 2026 and to be delivered to the Royal Canadian Navy in mid-2027, followed by the delivery of the future HMCS Preserver in late 2027 or early 2028.

Small Vessel Fleet

• Through Supplementary Estimates (C), $868,500 was approved for the Naval Large Tug project under the Capital Investment Fund Request.
• To support the Navy’s expanding operational requirements, the procurement contract for Naval Large Tugs was amended in December 2025 adding $81 million (including tax). This brought the total contract value to $213.45 million and enabled the acquisition of two additional tugs, for a total of six vessels.
• The Department of National Defence accepted a third Naval Large Tug in January 2026.
• Over the past year, Canada has acquired over 30 multi-role, waterborne security, and dive support craft, representing approximately $30 million in work for Canadian boat builders, with additional vessels slated for delivery in 2026.

Revitalized Shipbuilding Sector

• Since 2005, Canada has invested close to $40 billion in fleet recapitalization to sustain Coast Guard operations until new vessels are delivered under the National Shipbuilding Strategy (NSS).
• In November 2025, the Canadian Coast Guard (CCG) took delivery of an Offshore Oceanographic Science Vessel (OOSV), built by Vancouver Shipyards. The vessel will replace the critical oceanographic and climate change research that was performed by the decommissioned Canadian Coast Guard Ship Hudson.
• Construction efforts are currently underway on four large vessels for the CCG, including Two Polar Icebreakers and Two Arctic and Offshore Patrol Ship (AOPS) variants.
• On March 7, 2025, Canada awarded a $3.15 billion contract to Vancouver Shipyards and a $3.25 billion contract to Chantier Davie, each for the construction of a Polar Icebreaker. Build work is underway on both vessels.
• On March 15, 2026, a $9.6 million contract was announced for the design of Mid-Shore Multi-Mission (MSMM) vessels, which will provide updated capacity to support to activities including marine science, hydrographic surveys, and maritime security. Ottawa-based Adaptive Marine Solutions Inc is one of three companies participating in this joint venture, along with two Norwegian companies.

• The Canadian Coast Guard (CCG) fleet renewal consists of the following large vessels:
  • Three Offshore Fisheries Science Vessels (delivered in 2019 and 2020);
  • One Offshore Oceanographic Science Vessel (OOSV) (delivered November 2025);
  • Two Polar Icebreakers;
  • Up to 16 Multi-Purpose Icebreakers (MPI);
  • Two Arctic and Offshore Patrol Ships (AOPS) (Coast Guard variants); and
  • Up to six Program Icebreakers (PIB).

Vancouver Shipyards

• The OOSV, Canadian Coast Guard Ship (CCGS) Naalak Nappaaluk, was delivered on November 13, 2025. The OOSV began its transit from Canada’s West Coast to its homeport in Dartmouth, Nova Scotia late February 2026, and arrived on April 9, 2026, following 43 days at sea. The Dedication to Service ceremony is currently planned for May 2026.
• Construction engineering and long-lead items contracts for the Multi-Purpose Icebreakers were announced in March 2024. Work is underway in preparation for the start of the construction, currently planned for 2027.
• On March 7, 2025, Canada awarded a $3.15 billion build contract to Vancouver Shipyards to build a Polar Icebreaker. Steel was cut in April 2025, and full rate construction began in July 2025. The vessel is expected to be delivered to Canada in 2031.

Chantier Davie Canada Inc. (CDCI)

• In 2023, CDCI was formally announced as the third NSS Shipyard.
• Initial work on the Program Icebreakers is underway through an ancillary contract that was announced in March 2024.
• On March 7, 2025 Canada awarded a $3.25 billion contract to CDCI, for the construction of a Polar Icebreaker, the Polar Max. Steel was cut on August 20, 2025, following a ceremony held in Helsinki, Finland, and an event to mark the start of the Canadian portion of the vessel’s superstructure occurred on March 31, 2026. The vessel is expected to be delivered to Canada in 2030.

Irving Shipbuilding Inc. (ISI)

• Work is progressing well on both Arctic and Offshore Patrol Ships (CCG variants). ISI is targeting the launch of the CCGS Donjek in late-April 2026 and delivery in fall 2026. ISI expects to deliver CCGS Sermilik in fall 2027.

Small Vessel Fleet

• On May 25, 2023, Canada announced an investment valued at $2.5 billion for up to 61 small vessels. To date, 34 small vessels have been delivered to the CCG, including 22 vessels acquired under the NSS.

Additional Initiatives

• The CCG completed the renewal of its light and medium helicopter fleet with delivery of 16 new light-lift helicopters and seven new medium-lift helicopters.
• The CCG is also implementing interim measures to ensure continued delivery of critical services until new ships are delivered. This includes a comprehensive $2 billion Vessel Life Extension program for existing vessels, as well as the acquisition of three interim Medium Icebreakers and one interim Light Icebreaker.

Northern Engagement and Operational Support Hubs

• The Northern Engagement and Operational Support Hubs (NOSH) program will form a dispersed network of logistical stations comprised of several principal hubs and secondary nodes connected through multiple transportation spokes.
• Whitehorse, Resolute, Inuvik, Iqaluit, and Yellowknife have been announced as the locations for the NOSH.
• Cambridge Bay and Rankin Inlet have been announced as the first two Northern Operational Support Nodes of the NOSH.

National Defence’s Indigenous Reconciliation Program

• Through Budget 2022, starting in fiscal year 2023-24, National Defence received up to $1.5 million in grants and contributions funding each year for four years through the Indigenous Reconciliation Program (IRP).
• The program is aligned with the United Nations Declaration on the Rights of Indigenous Peoples and supports early, respectful collaboration with Indigenous communities.
• In fiscal year 2024-25, the IRP funded 25 First Nations, Inuit, and Métis initiatives.
• The next call for applications opened on April 1, 2026.

Canadian Coast Guard – Indigenous Relations

• The Canadian Coast Guard’s (CCG) role as a civilian fleet provides for the development of effective trust-based relationships with coastal Indigenous partners and National Indigenous organizations that extend the CCG’s emergency response capabilities across Canada.
• Within the CCG’s unique operational context, the Indigenous Relations Branch provides horizontal, operations-informed strategic advice on First Nations, Métis, and Inuit rights and interests.
• The Indigenous Relations Branch also provides subject matter expertise related to the design, delivery, and implementation of CCG’s programs, services, and operations in order to meet Crown obligations, including the duty to consult and modern treaty requirements and align with the UNDA and Inuit Nunangat Policy.
• Through the Oceans Protection Plan program delivery, the CCG has engaged First Nations, Inuit and Métis from coast to coast to coast, building partnerships and supporting capacity for collaboration with more than 140 Indigenous partners that have enhanced maritime safety, environmental protection, and marine emergency management.

Indigenous Representation in the Canadian Armed Forces

• As of March 31, 2026:
  • 2.7% of the Regular Force and Primary Reserve self-identified as Indigenous persons; with a representation goal of reaching 3.5% by the end of 2026.
  • 27.7% of Canadian Rangers self-identify as First Nations, Inuit, and Métis peoples.
• National Defence implements a broad range of proactive and targeted recruitment programs aimed at increasing the representation of Indigenous Peoples in the Canadian Armed Forces (CAF), including:
  • The CAF Indigenous Experience Program;
  • The Indigenous Leadership Opportunity Year at the Royal Military College; and
  • Primary Reserve Indigenous Summer Programs.
• These programs provide valuable pathways for Indigenous individuals to explore or begin military careers.
• The programs recorded an 81% graduation rate from 2022 to 2025. For 2025-2026, 51% of candidates who enrolled in these programs both graduated and elected to remain in the CAF, serving in either the Regular Force or the Primary Reserve.

Northern Engagement and Operational Support Hubs

• On March 6, 2025, the Minister of National Defence, jointly with the Premier of Nunavut, the Mayor of Iqaluit and Nunavut Inuit leaders, announced that the selection of Inuvik, Iqaluit, and Yellowknife as locations for the Northern Operational Support Hubs (NOSH) program.
• This was further expanded by the Prime Minister’s announcement on March 12, 2026, which added two additional NOSHs in Whitehorse and Resolute, as well as the first two Northern Operational Support Nodes (NOSN) in Cambridge Bay and Rankin Inlet.
• The NOSH program will form a dispersed network of logistical stations comprised of several principal hubs and secondary nodes connected through multiple transportation spokes.
• These hubs and nodes will extend the operational reach of the CAF, reduce logistical constraints, and enhance support for operations in the North and Inuit Nunangat.
• National Defence is working with territorial governments and Indigenous partners to identify additional locations, including opportunities for multi-use investments that benefit both the CAF and surrounding communities.

Defence Industrial Strategy

• Indigenous engagement is central to the Government’s approach to building necessary northern defence-related infrastructure, ensuring that investments respect rights, advance reconciliation, and deliver tangible, lasting benefits to communities, including through enhanced transportation, communications, energy, and business opportunities.
• The Government will promote Indigenous participation in supply chains, infrastructure development, and procurement, supporting Indigenous-owned firms through direct contracting, public-private partnerships, and regional investment initiatives.
• The Defence Industrial Strategy will also prioritize the well-being and economic development of Indigenous Peoples, aiming to strengthen communities and ensure that they play a central role in rebuilding Canada’s defence industrial base.

Engagements

• The Inuit-Crown Partnership Committee Working Group on Sovereignty, Defence, and Security continues to advance joint defence priorities, including the co-developed workplan focused on multi-purpose infrastructure and procurement in Inuit Nunangat.
• The Arctic Foreign Policy supports regular information sharing with Indigenous partners on international security developments and evolving threat environments.
• In 2024, the Assembly of Defence Team Indigenous Advisors was created to support reconciliation efforts within Defence and meets annually.
• Regional committees are underway within National Defence to support Indigenous engagement efforts and ensure region-specific concerns are incorporated into planning.
• In the Arctic, the Canadian Coast Guard (CCG) is:
  • Supporting capacity building across Inuit Nunangat through $10 million in Inuit Marine Engagement Capacity funding;
  • Co‑developing governance with Inuit Tapiriit Kanatami and Inuit Treaty Organizations; and
  • Participating in key Inuit–Crown Partnership Committee working groups.
• In the central region, the CCG is implementing 24 contribution agreements with Indigenous partners to:
  • Support training and capacity building for search and rescue (SAR) and environmental response capacity; and
  • Enable marine safety and security along the Canada-United States border through relationships with Indigenous communities.

National Defence Engagement in the Atlantic and Eastern Region

• Discussions focus on supporting military operations, sharing infrastructure project details, building Indigenous contracting capacity, incorporating Indigenous knowledge to protect marine life, and participating in cultural ceremonies at Defence establishments.
• Since 2022, the Royal Canadian Air Force (RCAF) at 5 Wing Goose Bay has:
  • Consulted with Indigenous partners regarding the potential resumption of low-level flying training.
  • Undertaken further engagement through a Preliminary Flying Proposal in March 2026 to strengthen collaboration and improve communication between the 5 Wing operations and Indigenous communities whose traditional territories overlap with the training area addressing challenges identified during earlier consultations.
• The CCG is strengthening marine emergency readiness through 12 multi-year funding agreements supporting Indigenous SAR training, exercises, and preparedness, and by supporting nine Indigenous‑operated vessels for SAR and environmental response through the Indigenous Community Boat Volunteer Program.

National Defence Engagement in the Pacific and Western Region

• The Te’mexw Treaty Association negotiations are nearing completion:
  • Represent Songhees, Sc’ianew, Snaw-naw-as, Malahat, and T’Sou-ke Nations.
  • These treaties will intersect with several significant National Defence real property holdings on southern Vancouver Island.
  • While operational authorities will remain intact, the treaty framework will reshape how National Defence engages with Nations on land use, access, environmental responsibilities, and future planning.
  • Esquimalt is developing relationship agreements with several of these Nations to better define how National Defence activities will be carried out on their treaty lands.
• National Defence has established communication protocols with Tl’esqox and T’Souke Nations and is pursuing similar agreements with two other Nations for central British Columbia training area lands for the Canadian Army.
• The RCAF at 19 Wing Comox has been:
  • Working with K’omoks First Nation to bolster Indigenous awareness among RCAF staff and to cultivate a positive working relationship with K’omoks First Nation.
  • Working with local First Nations to raise awareness about future procurement opportunities related to 19 Wing.
• The RCAF is actively engaged with K’omoks Nation regarding the lease back of Goose Spit lands Comox, as outlined in the Nation’s initialed treaty. This collaboration focuses on a wide range of shared priorities, including:
  • mutual benefits related to Defence property;
  • support for military activities;
  • communication protocols;
  • early infrastructure consultations;
  • capacity building;
  • mitigation of impacts on marine mammals (including endangered Southern Resident Killer Whales) and fish;
  • Indigenous access for traditional practices; and
  • maritime security and emergency response.
• The CCG continues to advance long‑term, collaborative relationships with Indigenous partners by:
  • Building a generational partnership with the Musqueam Indian Band through the 25‑year Canada–Musqueam Stewardship and Marine Management Agreement.
  • Supporting the Reconciliation Framework Agreement for Bioregional Oceans Management and Protection with 14 North Coast Nations.
  • Establishing the first Indigenous‑led CCG Auxiliary to enhance marine emergency response in remote coastal areas.

• Alberta has designated its Ministry of Jobs, Economy and Trade (JETI) as the defence lead for the province and is updating its Technology and Innovation Strategy to prioritize defence as an area of focus. Several cities in the province – including Calgary and Edmonton – are championing themselves as strategic defence hubs.
• In December 2025, quarterly meetings were launched between DM JETI and DM DND, at which the province expressed a particular interest in cooperating with DND on ammunition, training and simulation, in-service support and space, and uncrewed autonomous systems. There has also been senior DND engagement with the province on the margins of regional events like the ConvergX Conference, DEFSEC West, and a roundtable organized by the Edmonton Region Defence Alliance and 3 CAD Division. DND will also engage at the upcoming Alberta Aviation, Aerospace and Defence Summit two weeks after this meeting.
• In February 2026, over $6.5 million in RDII support was announced to two Alberta-based businesses – Logican Technologies (for advanced manufacturing) and Zero Point Cryogenics (for sub-kelvin cryogenics). In March, an additional $6.1 million in RDII support was announced for Wyvern (for space-based intelligence in marine technology), the University of Alberta (for a secure commercialization and integration centre), and the Council for the Advancement of Native Development Officers (to assist Indigenous businesses in accessing defence markets).

• In November 2025, BC released its Look West Jobs and Prosperity Strategy (developed in partnership with former Minister of National Defence Sajjan), highlighting the DIS and committing to leverage federal funding to accelerate dual-use infrastructure projects and grow key sectors. In February 2026, Premier Eby made an official pitch to host NATO’s new Defence, Security, and Resilience Bank in Vancouver. Also in February, the province approved a new, $400 million Strategic Investment Fund that expands its range of investment tools beyond grants and contributions to also include equity, loans, and profit-sharing, positioning it to better leverage rising defence spending and support DIS priorities.
• There have been discussions with the provincial government at all levels (Premier and below) to discuss DIS development, both in Ottawa and on the margins of key regional events such as the Aerospace Defence and Security Expo, Association of BC Marine Industries conferences, and BC Critical Minerals Forum.
• In April 2026, PacifiCan Chaired an inaugural BC Defence Funders Table comprised of federal DIS implementing partners and BC’s Ministry of Jobs and Economic Growth. ADM (Policy-Industry) was present for DND. This table will be held every 2-3 months at DG level to coordinate defence industrial investments in the province.
• In February 2026, an RDII investment of over $46.6 million was announced for eight BC projects including three at the University of BC and two at Simon Fraser University to build test facilities and advance research in defence and dual-use fields like life sciences, quantum, and AI. Over $6 million will go to three organizations including the Association of BC Marine Industries to enable them to provide training, workforce development and guidance for BC SMEs on entering defence supply chains.
• In March 2026, an additional $13.8 million was announced for the following initiatives: a satellite ground station and aerospace test site at the University of Victoria, the development of AI-enabled drone systems at the University, as well as funding to Arcane Aerospace (for next-generation satellites), Atreides (for AI-enabled sensor fusion software), and OSI Maritime (for development of their AI-enabled Collision Avoidance Decision Aid).
• In December 2025, Phase 1 of the Canadian Quantum Champions Program was announced. As part of this, the government has signed an agreement with BC-based firm Photonic Inc. for up to $23 million to accelerate the development of fault-tolerant quantum computers.
• BC companies like Teck Resources, and Defense Metals are also receiving support under critical minerals supply chain and stockpiling initiatives.

• The province’s Economic Development Strategy prioritizes productive investment, innovation, and global trade – objectives that align with the Defence Industrial Strategy’s focus on expanding industrial capacity and leveraging emerging technologies to strengthen Canada’s economic and security posture.

• DND has established regular liaison with Saskatchewan’s Ministry of Trade and Export Development and the Saskatchewan Defence Industry Group convened by Global Affairs Canada’s Regional Office, which includes provincial, federal, municipal, and industry attendees and which is considering the stand-up of a provincial defence industry association. Meetings have also been held with Saskatchewan officials on the margins of regional events like the Saskatchewan Aerospace and Defence Forum in March 2026.
• Saskatchewan’s Growth Plan: The Next Decade of Growth prioritizes innovation, diversification, and expanding trade – objectives that complement the DIS focus on strengthening industrial capacity and positioning Canadian firms for success in global markets.

• Over the past year, ON has taken significant steps to bolster its defence industry, making a $215 million shipbuilding investment in its 2025 budget and supporting a pitch by the City of Toronto to host NATO’s new Defence, Security, and Resilience Bank. In March 2026, Ontario appointed CAF veteran Bernard Derible as the province’s first Military Defence Representative, a new position aimed at promoting Ontario’s defence industry internationally and domestically.
• In October 2025, industry leaders in the province created the Ontario Defence Association to champion the cause of Ontario-based small and medium-sized enterprises in procurement and export efforts. Also in October, Invest Ottawa, supported by the municipalities of Ottawa and Gatineau, launched a strategy to position Canada’s National Capital Region as a Defence Innovation Hub.
• There have been discussions with ON at various levels (Ministerial and below) respecting DIS development, both in Ottawa and at regional events such as the Best Defence Conference, Ontario Vehicle Innovation Network Partnering Forum, Ontario Critical Minerals Forum, OG100 Semi-Annual Conference, and CANSEC defence exposition.
• DND has established regular liaison on the DIS with Ontario’s Ministry of Economic Development, Job Creation and Trade.
• In December 2025, Phase 1 of the Canadian Quantum Champions Program was announced. As part of this, the government has signed an agreement with Ontario-based firm Xanadu Quantum Technologies for up to $23 million to accelerate the development of fault-tolerant quantum computers.
• In January 2026, a $6.2 million Business Development Bank of Canada (BDC) investment in the Canada Rocket Company was announced to help this Ontario-based space tech venture build rockets to deploy satellites into orbit.
• In March 2026, RDII investments of over $2 million were announced in Canadore College (for its Advanced Training Simulation Wing and a new Product Development Fund) and nearly $7 million to the Creative Destruction Lab, a technology accelerator program which started at the University of Toronto (for its new Defence Stream).
• The same month, a Canadian Defence Industry Resilience Program investment of up to $305.4 million in IMT Precision was announced, to help it establish a new manufacturing facility in Ingersoll capable of producing empty metal shells for 155mm artillery projectiles.
• Also in March, two Ontario-based winners of DRDC’s Launch the North Initiative were announced, each of which will receive $8.3 million to move their space-launch ideas from concept to testing – Nordspace (for its Tundra Canadian Responsive Scalable Launch) and Canada Rocket Company (for its Canada Sovereign Launch Capability Development).
• In April 2026, FedNor announced an RDII investment of $976,650 to enable Business Centre Nipissing Parry Sound Inc. to launch the Northern Ontario Defence Opportunities Project (NODOP). NODOP will provide performance-based contributions of up to $50,000 per firm, to help Northern Ontario businesses enhance capabilities, meet defence priorities, and integrate into defence supply chains. Through investments in certifications (ISO9001, AS9100, cybersecurity etc), controlled goods compliance and equipment upgrades, NODOP aims to strengthen regional competitiveness while supporting market entry and diversification.

• Over the past year, Quebec has taken significant steps to bolster its defence industry, naming it as a priority sector and allowing Invest Quebec to invest in certain defence-related enterprises. In February 2026, the City of Monreal, Montreal International, and the Government of Quebec made an official pitch to host NATO’s new Defence, Security, and Resilience Bank. Other municipalities are also increasing their attention to the defence industry, with the City of Sherbrooke having released a new DEFSEC Strategy in March 2026.
• There have been discussions with QC at various levels (Ministerial and below) to discuss DIS development, both in Ottawa and at regional events like Quantum Now. DND has established regular liaison with new Quebec’s Interministerial Defence Committee established in 2025 and sits on a CEDQ-led Table on DIS Implementation in Quebec, established in January 2026, which typically meets quarterly.
• In December 2025, Phase 1 of the Canadian Quantum Champion Program was announced. As part of this, the government has signed agreements with Quebec-based firms Anyon Systems and Nord Quantique for up to $23 million each, to accelerate the development of fault-tolerant quantum computers that demonstrate industrial application.
• In January 2026, BDC announced a $1 million investment in Irréversible, a QC-based semiconductor startup developing AI chips for next-generation computing.
• In February 2026, a total of over $33 million in RDII funding was announced for 28 projects in Quebec:
  • $10 million to Héroux-Devtek (for equipment acquisition).
  • $1.5 million to Terminal and Cable GP (for equipment acquisition and facility refurbishment).
  • $200,000 to TestX Lab (for equipment acquisition).
  • $3 million to CM Labs Simulations (for marketing).
  • $2.4 million to Alphacasting (for equipment acquisition).
  • $1.25 million to C3RiOS Systems (for marketing and equipment acquisition).
  • $600,000 to Anyon Systems (for marketing).
  • $250,000 to Beslogic (for marketing).
  • $245,000 to Canadian Technology Systems (for marketing and equipment acquisition).
  • $200,000 to SimActive (for marketing).
  • $2.5 million to Kinova (for equipment acquisition).
  • $400,000 to Composites Development Centre of Quebec (for equipment acquisition).
  • $158,118 to Usinage Préci-Max (for facility upgrade).
  • $2 million to Université de Sherbrooke (for equipment acquisition).
  • $1.6 million to MiQro Innovation Collaboration Centre (for equipment acquisition).
  • $825,600 to the Centre de technologies avancées BRP at the Université de Sherbrooke (for equipment acquisition).
  • $75,000 to the Usinage Préciaxes (for equipment acquisition).
  • $1.64 million to the Quebec Metallurgy Centre (for equipment and accreditation acquisition).
  • $1.23 million to Novika Solutions (for equipment acquisition).
  • $640,000 to Les Industries Desjardins (for equipment acquisition).
  • $1.15 million to Chantier Naval Forillon (for facility upgrade)
  • $500,000 to INFLO Technique (for equipment acquisition).
  • $180,000 to ApexO (for marketing and innovation).
  • $331,725 to Carcajou Tactical (for equipment acquisition and leasehold improvements).
  • $250,000 to Tyto Robotics (for marketing).
  • $250,000 to Ferreol (for marketing).
  • $170,000 to Levando Technologies (for business launch).
  • $99,999 to Ferreol Technologies (for innovation and marketing).
• In March 2026, under the Canadian Defence Industry Resilience Program, investments were announced for General Dynamics Ordnance and Tactical Systems in Valleyfield ($355.7 million to construct a nitrocellulose facility; $57.9 million to establish Canada’s first facility capable of loading, assembling, and packing M231/232 charges used in 155mm artillery; and up to $642 million to establish a manufacturing facility to load, assemble, and pack 155mm High‑Explosive projectiles).
• Also in March, a Quebec-based winner of DRDC’s Launch the North Initiative was announced, which will receive $8.3 million to move its space-launch idea from concept to testing – Reaction Dynamics (for its Aurora-8 Responsive Launch Vehicle).
• In April 2026, an RDII investment of $4.5 million was announced for Aéro Montréal, Propulsion Québec and Sous-traitance industrielle Québec (STIQ) to offer a continuum of services to Quebec SMEs to foster their integration into defence supply chains.
• Quebec’s critical minerals are being leveraged to support defence-relevant supply chain development and potential stockpiling, in partnership with companies like Nouveau Monde Graphite and Rio Tinto (scandium).

• The DIS aligns with New Brunswick’s new economic development strategy, launched in April 2026, which prioritizes defence opportunities and includes plans for a growth office and major project office.
• In March 2026, an RDII investment of just under $845,000 was announced for two New Brunswick projects with the University of New Brunswick (to develop a Maritime 3D Digital Twin platform) and CE3 Electronic Inc. (for cybersecurity certification/compliance).

• Last year, Nova Scotia stood up a Defence Leadership Table that brings together representatives of provincial and municipal organizations, private sector and academic partners, and Atlantic Canada Opportunities Agency (ACOA). DND is liaising with this table at ADM level to help Nova Scotia contribute to and benefit from the DIS. The DIS has also been discussed with Nova Scotia officials on the margins of regional events like DEFSEC Atlantic.
• At the Halifax International Security Forum in November 2025, the MND announced COVE as the first (Maritime-focused) Defence Innovation Secure Hub (DISH) under BOREALIS, marking the launch of a national network of classified spaces were Canadian innovators and end users can co-develop, test, and validate emerging technologies.
• In February 2026, an RDII investment of over $4 million was announced to support nine projects in Nova Scotia, with Sensor Technology Ltd, Mathers Logistics Ltd, Salient Energy Ltd, AML Oceanographic Ltd, GALAXIA Mission Systems, Marine Thinking Ltd., Atlantic Hardchrome Ltd, L&M Highland Outfitters Ltd, and Leeway Marine. Projects range from developing unmanned surface vehicles, to submarine control systems, satellite manufacturing, zinc-ion batteries, heavy lift equipment, and ocean data collection.
• DND’s primary spaceport partner under the sovereign space launch initiative is Maritime Launch Services (MLS) in Nova Scotia. DND signed a 10-year, $200 million lease agreement with MLS which will grant the department exclusive access to a dedicated orbital launch pad, serving as the central foundation for a multi-user Government of Canada spaceport near Canso, NS.

• In March 2026, a total $16 million RDII investment was announced to support five Newfoundland companies: PAL Aerospace Ltd (for commercialization of Arctic surveillance aircraft), Virtual Marine Technology Inc. (for marine simulation-based training solutions); Solace Power Inc. (for wireless power and data solutions); CoLab AI Inc (for AI-power collaboration software); and Rutter Inc. (for naval and Arctic radar technologies).

• Premier Lantz has also committed to create an advisory panel under the leadership of Innovation PEI to help PEI companies take advantage of DIS spending, with the intention to eventually develop a provincial strategy to capitalize on emerging defence opportunities.

• Northwest Territories leaders – including former Premier Simpson – have met with DND at various levels to discuss the DIS.
• In March 2026, an RDII investment of over $5.4 million was announced to support dual-use infrastructure development in the Town of Inuvik, including upgrades to core water and wastewater infrastructure such as the construction of a new water tower and bulk water station and the rehabilitation of the town’s sewage lagoon.

• In February 2026, an RDII contribution over up to $353,576 was announced to the Council of Yukon First Nations (for liaison positions to facilitate coordination with the Government of Yukon, DND, and the Canadian Institute for Arctic Security).

Women in Canada’s Defence Sector

• Representation across the defence workforce remains uneven, particularly in technical, operational, and leadership roles for women, Indigenous peoples, racialized communities, persons with disabilities, and Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, and additional people who identify as part of sexual and gender diverse communities (2SLGBTQIA+). Addressing labour shortages requires moving beyond traditional recruitment profiles and recognizing a wider range of skills, career paths, and lived experiences as essential to defence capability.
• In 2022, the percentage of female employees in the Canadian defence industry (27%) was broadly comparable to the broader manufacturing sector (29%). Within the defence industry, women accounted for 17% of Science, Technology, Engineering, and Mathematics (STEM) roles, compared to 21% in the broader manufacturing sector, 26% of production workers compared to 23%, and 38% of corporate functions compared to 53%.
• Canada’s defence industry requires stronger mechanisms for consistent collection and sharing of disaggregated data on its recruitment strategies and workforce to understand diverse women’s experiences in the defence sector, including important differences in occupational concentration, career progression, and access to leadership and decision-making roles.

Recommendation from the Standing Committee on Industry and Technology on dedicated streams and supports for women-owned and Indigenous small and medium enterprises

• The Standing Committee on Industry and Technology (INDU) report on Improving Productivity in Canada (March 13, 2026) and the report on Canada’s Defence Industrial Strategy: From Innovation to Readiness (March 24, 2026) recommended that the Government of Canada review its procurement processes and establish dedicated streams or supports for women-owned and Indigenous-owned small and medium enterprises. This analysis is being advanced with federal partners and will inform policy development and the upcoming Canada Defence Skills Agenda.

Canada’s Defence Skills Agenda and Federal Programs in Support of Women’s Participation in Skilled Trades

• Working with National Defence counterparts to build Canada’s future defence workforce, the Government will launch a Canada Defence Skills Agenda focusing on four key priorities: strengthening the defence industry talent pipeline, addressing urgent skills needs, expanding the supply of skilled workers, and partnering with provinces, territories, and Indigenous rights holders.
• Workforce Alliances are a key part of this work, helping employers and sector partners identify and address barriers to the recruitment, retention, and advancement of women through sector‑specific labour market analysis, including challenges related to workplace culture, remote or non‑traditional work environments, skills mismatches, and rapid technological change. In February 2026, Employment and Social Development Canada announced the creation of six Workforce Alliances focused on Advanced Manufacturing, Housing and Construction, Transformation and Supply Chains, Energy and Electricity, Mining and Minerals, and the Care Economy.
• The Government of Canada also recognizes that women have traditionally been underrepresented in the skilled trades as a result of longstanding and complex barriers to entering, progressing and completing their apprenticeship training, and finding and retaining well-paying jobs in the trades. A whole-of-society approach – including targeted recruitment, inclusive and equitable workplace practices, and industry-led outreach – broadens the talent pipeline and strengthens innovation and informed decision‑making across the defence ecosystem.
• Employment and Social Development Canada’s Women in the Skilled Trades (WST) initiative aims to recruit, retain, and help women apprentices succeed in Red Seal trades found predominately in the construction and manufacturing sectors. Launched in the fall 2022, the WST is expected to support more than approximately 12,000 women by the end of 2027-2028. To help generate interest in the trades, the Government of Canada is also running a National Campaign to promote the skilled trades as first-choice careers.

Supporting Women’s Participation in Defence and Security Sectors and Emerging Technologies

• Women are often at the forefront of interdisciplinary approaches to complex threats such as cyber incidents and disinformation, bringing legal, policy, ethical, and community‑engagement perspectives that are increasingly critical to defence industry success in global markets.
• Integrating intersectional perspectives and priorities under the Women, Peace and Security agenda into defence and security sectors will strengthen industry foresight on differential impacts on privacy, safety and access to services, and help anticipate unintended consequences of new and emerging technologies on the human environment and mitigate through safeguards, inclusive design, and responsible technological deployment.
• Canada’s third National Action Plan on Women, Peace and Security (2023–2029) (CNAP3) expands the Women, Peace and Security agenda to the digital domain, recognizing that emerging technologies shape security outcomes.
• Under CNAP3, the Government of Canada is committed to full, equal, and meaningful participation of women, including in leadership roles in cyber security and advanced defence technologies.

Supporting Women in the Canadian Armed Forces/at National Defence

• Within National Defence, the Canadian Armed Forces Employment Equity Plan includes a target of 25.1% women by 2026, signalling a commitment to change not only who is recruited, but who would be retained and who would advance. Targets help ensure recruitment strategies are intentional rather than inadvertently reinforcing historical patterns.
• Similarly, the 2024-2027 Department of National Defence Employment Equity, Diversity, and Inclusion Plan for the Public Service Workforce focuses on building an equitable, diverse, and inclusive workforce; strengthening leadership accountability; and ensuring organizational policies and practices actively promote equity, diversity and inclusion (EDI). These outcomes are pursued through systemic and holistic approaches to change, rather than isolated initiatives. Together, these plans demonstrate how intentional, organization‑wide equity efforts can support workforce renewal and serve as a reference point for defence industry partners facing similar labour and talent challenges.
• National Defence has also developed specialized training, including Conducting Gender-Based Analysis Plus (GBA+) in the Defence Context and GBA+ in Defence for Leaders, which are offered regularly to build practical capacity across the Defence Team. As part of the Culture Evolution Framework, all National Defence organizations are required to maintain a GBA+ implementation plan, including actions to strengthen governance, capacity‑building, and integration into day‑to‑day operations.

Advancing Representation of Women in Decision-making Roles at National Defence

• Roles in national defence and security have shifted markedly over recent decades, with women now serving as trusted leaders across the public service. While gaps remain, the trajectory is clearly toward greater representation, responsibility, and influence.
• Women already serve in the most senior roles within Canada’s defence and security community, including as Deputy Minister, Chief of the Defence Staff, and in other national security leadership positions.
• Women in senior positions signal not only visibility, but a shift in how leadership, expertise, and decision‑making are valued and normalized across the defence and security ecosystem. This reinforces the importance of intentional career development, mentorship, and succession planning to support women’s advancement at all levels.
• Advancing women into key roles requires deliberate efforts, such as leadership development, talent management, and inclusive organizational cultures, to ensure women move from entry‑level roles into positions with real authority and impact.

Bill C-11, An Act to amend the National Defence Act and other Acts (Military Justice System Modernization Act)

• On September 26, 2025, Bill C-11, a reintroduction of former C-66, was tabled to amend the National Defence Act (NDA).
• Key areas of the proposed legislation included:
  • Removing the Canadian Armed Forces’ authority to investigate and prosecute Criminal Code sexual offences committed in Canada (recommendation 5 of the report by former Supreme Court Justice Louise Arbour), with such cases instead being transferred to and addressed by the civilian justice system;
  • Making amendments to the NDA modifying the appointment process for the Director of Military Prosecutions, the Director of Defence Counsel Services, and the Canadian Forces Provost Marshal (recommendations from former Supreme Court Justice Morris J. Fish);
  • Excluding military judges from the summary hearing system and expanding access to Victim’s Liaison Officers; and
  • Amending the NDA to align sex offender information and publication ban provisions with the amendments made in An Act to amend the Criminal Code, the Sex Offender Information Registration Act and the International Transfer of Offenders Act.
• Following six meetings with witnesses, the Standing Committee on National Defence (NDDN) made significant amendments to Bill C-11 during its clause-by-clause review.
• NDDN reported an amended Bill C-11 to the House of Commons on February 9, 2026.
• On April 21, 2026, the Speaker of the House of Commons ruled six amendments null and void and ordered that Bill be reprinted without the amendments for consideration at report stage.
• On April 23, 2026, Bill C-11 was introduced at report stage in the House of Commons

Reintroduction of Former Bill C-66

• On September 26, 2025, the Minister of National Defence reintroduced legislation to amend the National Defence Act (NDA). The series of targeted measures are designed to enhance and modernize the military justice system.
• These amendments address eight recommendations from the Third Independent Review of the National Defence Act (IR3), conducted by former Justice Fish, and address one recommendation from the Independent External Comprehensive Review (IECR), conducted by Justice Arbour.
• This legislation was first introduced in March 2024 as Bill C-66 but was terminated once Parliament was prorogued in January 2025.

Details of Bill C-11 at Introduction

• The original Bill C-11 introduced in the House was grouped into four key areas:
  • Removing the Canadian Armed Forces (CAF)’s investigative and prosecutorial jurisdiction over Criminal Code sexual offences committed in Canada, thereby addressing Recommendation 5 of former Supreme Court Justice Louise Arbour’s IECR, which states that, “Criminal Code sexual offences should be removed from the jurisdiction of the CAF. They should be prosecuted exclusively in civilian criminal courts in all cases. Where the offence takes place in Canada, it should be investigated by civilian police forces at the earliest opportunity.” The proposed legislation will provide exclusive jurisdiction to civilian authorities to investigate and prosecute these offences in Canada.
    • Recommendation 5 is the only recommendation from Madame Arbour that can exclusively be implemented through legislation. Work is either complete or underway to implement all 48 recommendations, an External Monitor, Madame Jocelyne Therrien, provided external oversight of this progress from 2022-25.
  • Addressing eight recommendations (2, 7, 8, 10, 13, 14, 15, 16) from the Third Independent Review of the National Defence Act report by former Supreme Court Justice Morris J. Fish. These amendments sought to, among other things:
    • Modify the process for the appointment of the Canadian Forces Provost Marshal, the Director of Military Prosecutions and the Director of Defence Counsel Services;
    • Expand the class of persons who are eligible to be appointed as a military judge to include non-commissioned members;
    • Affirm the Judge Advocate General’s respect for the independence of authorities in the military justice system in the exercise of the Judge Advocate General’s superintendence of the administration of military justice;
    • Expand the class of persons who may make an interference complaint and provide that a member of the military police or person performing policing duties or functions under the Canadian Forces Provost Marshal’s supervision must make such a complaint in certain circumstances; and
    • Change the title of the Canadian Forces Provost Marshal to the Provost Marshal General to align with the titles of other senior designations in the CAF, such as the Surgeon General, the Chaplain General, and the Judge Advocate General.
  • Excluding military judges from the summary hearing system, and expanding access to Victim’s Liaison Officers, under the Declaration of Victims’ Rights, to individuals acting on behalf of a victim.
  • Amending the National Defence Act to align sex offender information and publication ban provisions with the amendments made to the Criminal Code in An Act to amend the Criminal Code, the Sex Offender Information Registration Act and the International Transfer of Offenders Act. These proposed amendments are necessary to ensure the parallel military justice system remains constitutional and aligned with the Criminal Code and the civilian criminal justice system.

Amendments Made During Committee Study

• The amendments to Bill C-11 passed at the Standing Committee of National Defence (NDDN) fall into two broad categories.
  1. First, the provisions of Bill C-11 that initially sought to remove military jurisdiction over Criminal Code Sexual Offences were amended. The amended Bill now retains concurrent military and civilian jurisdiction over investigation and prosecution, and to give victims choice regarding the forum of the proceedings (clauses 7 and 8 of the amended Bill).
  2. Second, a series of additional amendments related to the military justice system and key actors within it. Among others, these include:
     • Extending defence counsel services to members charged with Criminal Code sexual offences in the civilian justice system and, possibly, at summary hearings (clause 40.1); and
     • Removing Judge Advocate General supervision of the Director of Defence Counsel Services (clause 40.2).
• During NDDN’s clause‑by‑clause review, members raised concerns about the constitutionality of certain amendments, their potential negative impact on the functioning of the military justice system, and the possibility that retaining concurrent military and civilian jurisdiction could harm victims through delays or legal uncertainty.

Nullification of Select Amendments

• On April 21, 2026, the Speaker of the House of Commons ruled on the admissibility of six opposition amendments to the Bill, three amendments that added Clauses 2.1, 9.1 and 19.1 and three amendments to Clauses 8, 9 and 18, following a point of order raised on April 17 by the Deputy Government House Leader. Consequently, the Speaker ruled that the amendments were beyond the scope of the Bill, declared the amendments null and void, and ordered that Bill C-11 be reprinted without the amendments for consideration at report stage.

Report Stage

• On April 23, 2026, Bill C-11 will be presented and debated at report stage in the House of Commons. On that day’s Notice Paper, fifteen motions to amend the bill were published: ten from the Minister of National Defence and five from MP James Bezan (Selkirk—Interlake—Eastman), Vice-Chair of NDDN.

Support to Affected Persons

• On April 24, 2026, the Sexual Misconduct Support and Resource Centre announced its new name: the Defence Community Support and Resource Centre (DCSRC), reflecting its expanded mandate to support members of the Defence community affected by racism, while continuing to support those affected by sexual misconduct.
• Since 2015, the DCSRC has worked to ensure that people affected by sexual misconduct have access to a continuum of trauma‑informed, confidential support services and trusted resources.
• Over the past decade, its services, programs and initiatives have evolved to meet the needs of the wider Defence community. The DCSRC provides immediate assistance through the 24/7 Support Line, as well as ongoing case management and advocacy through the Response and Support Coordination Program. Survivors can also access peer connection, independent legal assistance, and community-based services funded through the Community Support for Sexual Misconduct Survivors Grant Program.
• In September 2025, the DCSRC expanded services to members of the Canadian Coast Guard.

United Nations (UN) Security Council Resolution 2817

• On March 11, 2026, the UN Security Council adopted a resolution condemning Iran’s “egregious attack” against its regional neighbours amid rapidly spiraling violence in the Middle East, while rejecting a second draft tabled by the Russian Federation.
• It specifically condemned Iran’s attacks against residential areas and civilian objects — demanding their immediate cessation — while also demanding that Iran halt its threats, provocations and actions aimed at interfering with maritime trade, as well as support to proxy groups across the region.

Joint Statement Regarding Strait of Hormuz

• On March 19, 2026, the Prime Minister’s Office released a joint statement from the leaders of Canada, the United Kingdom (UK), France, Germany, Italy, the Netherlands, and Japan on the Strait of Hormuz.
• The statement condemned Iran’s attacks on unarmed commercial vessels and civilian infrastructure which have essentially caused the closure of the Strait of Hormuz. It further expressed concern about the escalating conflict and including the laying of mines, drone and missile attacks, and other attempts to block the Strait to commercial shipping.
• There was an appeal for compliance with UN Security Council Resolution 2817 and the UN Convention on the Law of the Sea specifically, as well as principles of international law more broadly.

Statement Regarding Leader’s Call

• On March 17, 2026, the Prime Minister’s Office released a statement concerning the Leader’s call co-hosted by the President of France, Emmanuel Macron, and the Prime Minister of the UK, Sir Keir Starmer.
• The leaders discussed the rapidly evolving security and economic situation in the Strait of Hormuz and underscored the threats to navigation in the Strait of Hormuz would pose a direct threat to international law and the international economy.
• Canada expressed its full solidarity with Gulf partners who have faced retaliatory attacks during the conflict and welcomes France and the UK’s leadership. The PM stressed the importance of international cooperation and stands ready to take further action to ensure safe passage through the Strait, including through diplomatic engagement, international advocacy, and support for crew safety and security.

Canadian Armed Forces Strength

• The authorized target strength of the Canadian Armed Forces (CAF) Regular Force is 71,500, and that of the Primary Reserve Force is 30,000.
  • As of March 31, 2026, the current Force Strength is approximately 67,800 Regular Force and 25,100 (Average Paid Strength) Primary Reserve Force members.
  • This is approximately 8,600 short of the authorized strength.
• In fiscal year 2025-26 (as of March 31, 2026), approximately 13,100 individuals joined the Regular Force and Primary Reserve, 17.7% of whom were women and 22.3% of whom identified as francophone.
  • Fiscal year 2024-25 intake: approximately 11,500 individuals.
  • Fiscal year 2023-24 intake: approximately 8,100 individuals.

Primary Reserve - Total Strength (TS)

• TS at end of 2024-25 was 30,351.
• TS at the end of 2025-26 is 32,408.
• This represents an increase of 2,057 members.

Cost-of-Living Supports – Salary Increases

• On August 8, 2025, the Prime Minister and the Minister of National Defence announced the following updates to CAF compensation measures:
  • Pay adjustment (retroactive to April 1, 2025)
    • This significant, pensionable adjustment is a result of the modernization of the Military Factor, a percentage added to the base salaries of CAF members.
    • The back pay was paid out on November 14, 2025.
  • Military Service Pay (retroactive to April 1, 2025)
    • A new annual, pensionable compensation measure will be implemented, paid as a lump sum, based on years of service, for both Regular Force and Reserve Force members.

Additional Compensation Measures

• Recruitment Allowance for Critical Occupations - Effective November 1, 2025
  • Members will receive $10,000 upon completion of basic training, $20,000 once qualified in a trade, and $20,000 upon completion of six years of service and a commitment to serve an additional three years.
• Instructors’ Allowance - Effective January 1, 2026
  • All members posted, attach-posted, or on temporary duty to a designated unit (not as a student or a candidate) will receive $300 per month. Instructors at Canadian Forces Leadership and Recruit School will receive an additional $35 per day they instruct, while instructors at other establishments will receive an additional $20 per day they instruct.
• Changes to Environmental Allowances - Effective April 1, 2026
  • The current monthly allowance, prorated for the number of years in the environment, will transition back to a daily flat rate of $100 per day, and will be received when the member is at sea or in the field.
• Domestic Operations and Arctic Allowance - Effective April 1, 2026
  • In addition to any environmental allowances being received, members will receive $45 per day when deployed on a named domestic operation (for example, Operation LENTUS), and an additional percentage of their land duty (50%) or sea duty (25%) allowance when deployed in the Arctic.
• Posting Frequency Allowance - Effective April 1, 2026
  • For Regular Force, the allowance is $13,500 for each of the first three moves, $20,250 for moves four to six, and $27,000 after that. This applies to single members as well, although those on Imposed Restriction will receive half of the new allowance, given the other benefits being provided.
• Improved Imposed Restriction Allowance - Effective November 1, 2025
  • A member will now receive a food allowance of $19.51 per day, a transportation allowance of $350 per month and an incidentals allowance of $200 per month.

Increasing Basic Training Capacity

• Military Personnel Generation Training Group (MPGTG) is exploring alternative qualification pathways to utilize resources, infrastructure, and support from different post-secondary institutions. By doing so, MPGTG is working within established agreements to reinforce its commitment to enhancing its training opportunities.
• Basic Military Qualification (BMQ) and Basic Military Officer Qualification (BMOQ) will grow training capacity to support an external Strategic Intake Plan of 8,500 (approximately 10,000 seats) between April 2026 and March 2027.

Media Coverage

• On April 30, 2026, the Globe and Mail published an article containing details of what they described as a leaked internal report concerning increased failure rates of recruits participating in BMQ and BMOQ.
• This included commentary of a leader from the Canadian Forces Leadership and Recruit School (CFLRS) in Saint-Jean-sur-Richelieu, QC, describing mental health concerns, cultural clashes, unpreparedness, and a lack of guidance.

Digital Onboarding System

• The Canadian Armed Forces (CAF) will introduce a Digital Onboarding System (DOS) in early Fall 2026. DOS will initially focus on high-impact onboarding activities that can be introduced earlier in the recruiting and training pipeline. The system is designed to better prepare candidates ahead of basic training by supporting administrative readiness, early engagement, and foundational mental and physical preparation.
• The focus of the DOS is on shifting non-training administrative activities earlier in the pipeline to reduce administrative burden during BMQ/BMOQ and protect training time for core military skills.
• The DOS will support broader CAF personnel modernization by leveraging enterprise integration, reducing duplication across systems, enabling scalable personnel initiatives, and improving visibility of candidate progression and outcomes.

Critical Occupation Recruitment Allowance (CORA)

• Despite meeting its overall recruiting goal last fiscal year, the CAF continues to experience critical shortages in key occupations needed to maintain operational readiness.
• While CORA benefits were announced in November 2025 and the full impact on applications is not yet known, most occupations eligible for CORA achieved at least 90% of their strategic intake targets in the last fiscal year.
• Effective November 1, 2025, the Critical Occupation Recruitment Allowance applies to new recruits in Non-Commissioned Member trades where trained strength is below 76% of authorized levels. The allowance is not retroactive and is paid in three instalments: upon completion of basic training, upon achieving trade qualification, and after six years of service with a commitment to serve an additional three years.

Cost-of-Living Supports – Childcare

• Budget 2024 announced a total investment of $100 million over five years to enhance access to childcare services for CAF families.
• This is in recognition of military service, which requires frequent moves and deployments making it more difficult for military members and their families to find and maintain childcare. While a small number of childcare spots are available through Military Family Resource Centres at bases and wings, the vast number of CAF families must compete for childcare spots in the local civilian community where they live, often perpetually registered at the bottom of wait lists because they move often and need to continually start over.
• This funding will help improve childcare access for military families by partnering with not-for-profit childcare providers to expand services near bases, reimbursing CAF family members who train and certify as childcare workers and creating a network of childcare coordinators to quickly connect families with local childcare resources.
• To date, approximately $12 million of the $100 million announced in Budget 2024 has been received by the Defence Team, as reported in Supplementary Estimates (C) 2025-26. This funding is being used to hire staff and prepare for the initial rollout of expanded childcare for CAF families.

Cost-of-Living Supports – Housing

• Budget 2024 announced a total investment of $1.4 billion to build 1,400 homes and renovate 2,500 existing units.
• The first phase of the Canadian Forces Housing Agency Construction Program, launched in fiscal year 2024-25, is delivering over 800 new units in nine locations experiencing significant housing pressures. These are Gagetown, Halifax, Valcartier, Trenton, Kingston, Petawawa, Borden, Edmonton, and Esquimalt; locations with the highest number of CAF entrants, members on long-term training and private sector market challenges.
• Announced on February 24, 2026, Phase 2 builds on the accelerated progress of the first phase:
  • Construction of primarily one and two-bedroom unit apartment buildings is planned at 25 locations, including approximately 280 units in Ottawa.
  • The five locations with the largest planned growth are Valcartier, Quebec, Petawawa, Ontario and Edmonton, Alberta, with over 1,000 new housing units each; Kingston, Ontario, with over 900 housing units, and Gagetown, New Brunswick, with over 500 housing units.
• To enable this work, Defence Construction Canada issued an advanced procurement notice for potential projects valued at approximately $3.74 billion.

Auditor General Report on CAF Recruitment

• In its fall 2025 report Recruiting for Canada’s Military, the Auditor General noted:
  • The CAF did not meet its recruitment and training targets and lacked a clear understanding of the causes of applicant attrition during the recruitment process;
  • The CAF did not have sufficient basic training capacity to meet demand if recruitment targets were achieved;
  • Planning for new recruits did not fully meet demand and failed to adequately account for trained and effective members leaving the CAF;
  • Recruitment and training processes are inefficient and do not fully leverage modern tools such as electronic forms or automation; and
  • Security screening processes are affected by significant backlogs.
• Over the last year, National Defence has redesigned key elements of the recruiting process to make it faster, more efficient, and easier for applicants to navigate.
• Digital tools have been improved, administrative steps streamlined, and training capacity expanded.
• These changes reduce bottlenecks, improve communication with applicants, and make it easier for Canadians to pursue a career in uniform.