Standing Committee on National Defence (NDDN): Supplementary Estimates (B), December 4, 2025

• Supplementary Estimates (B) would increase National Defence's authorities for the current fiscal year to $46.7 billion ($48.4 billion including CSE and agencies).
• The following funding items are included in Supplementary Estimates (B) 2025-26:
  • Future Fighter Capability Program ($476,034,107) See Tab 11
  • Previously approved defence investments funded through the Capital Investment Fund ($294,512,411) See Tab 04
  • River-Class Destroyer ($215,118,205) See Tab 12
  • Domestic Ammunition Production Initiative ($59,400,000) See Tab 10
  • Increased internal support capacity ($17,215,400)
  • Emergency towing services on the west coast ($12,625,134) See Tab 14
  • Remediation of the North Bay Jack Garland Airport Site ($6,721,143) See Tab 13
  • Establish the program for Canadian Innovators and Accelerators of the North Atlantic Treaty Organization Defence Innovation Accelerator for the North Atlantic ($5,836,125)
  • Marine spot chartering and related activities ($5,173,569)
  • Arctic Over-the-Horizon Radar Program ($4,763,055) See Tab 09
  • Reinvestment of revenue received from polluters or the Ship-Source Oil Pollution Fund for clean-up costs associated with oil spills ($3,584,708) See Tab 14
  • Temporary Water Treatment Units for the City of Saguenay ($2,781,976) See Tab 13
  • Recognition and Incremental Implementation of Self-Government Agreements (horizontal item) ($323,804)
  • Funding to administer Recognition and Incremental Implementation Agreements (Budget 2024) (horizontal item) ($134,033)

Transfers

• In addition to receiving new funding, these Supplementary Estimates include 25 transfers to other Government departments [five coming into National Defence ($12,197,748) and seventeen going out (-$1,089,566,237)]. There are also four internal transfers from Vote 1 (-$249,778,103) to Vote 5 ($107,127,193) and Vote 15 ($142,650,910) with a $0 net effect.

Canadian Coast Guard

• On September 2, 2025, Order in Council P.C. 2025-0639 transferred the control and supervision of the Canadian Coast Guard from the Department of Fisheries and Oceans to the Department of National Defence. This includes transferring unexpended appropriations for the Canadian Coast Guard to the Department of National Defence.
• National Defence allotment adjustments in 2025-26 include $1,759,402,409 for the Deemed Appropriations from the Department of Fisheries and Oceans for the Canadian Coast Guard.
  • Operating expenditures: $483,096,489
  • Capital expenditures: $1,263,707,747
  • Grants and contributions: $12,598,173

• Treasury Board (TB) Submission funding of $9.5M for the Classified Security Management Infrastructure (CSMI) Phase 2B Project
• Reprofiled funding of $22.5M from 2023-24 and 2024-25 for the Canadian Cryptographic Modernization Program (CCMP) Project
• A net funding increase of $38.0M resulting from six interdepartmental transfers.

• Funding of $9.5M for CSMI Phase 2B Project to support the development and implementation of cryptographic capabilities as part of the CCMP Project.
  • CSMI Phase 2B replaces the Government of Canada's (GC) aging core cryptographic infrastructure and completes the development and implementation of new cryptographic key management systems that are required to protect the GC and Canadian Armed Forces communications and information.
• Reprofiled funding of $22.5M from 2023-24 and 2024-25 for the Canadian Cryptographic Modernization Program (CCMP) Project to re-align lapsed funding with new project timelines.
  • This funding will be used to support The CCMP to modernize the Government of Canada's aging cryptographic equipment and infrastructure in order to safeguard classified information and maintain Canada's ability to establish secure communications both nationally and internationally.
• A net funding increase of $38.0M resulting from six interdepartmental transfers:
  • Transfer of $30.0M from the Department of National Defence (DND) relating to Information Management and Information Technology (IM/IT) support services:
    • $17.2M for Top Secret Network Convergence; and
    • $12.8M for IM/IT support provided to the Canadian Armed Forces Cyber Command
  • Transfer of $6.5M from DND relating to the CSMI Phase 2B Project;
  • Transfer of $2.9M from Shared Services Canada to support Secure Communications for National Leadership program
    • This program will help to provide secure mobile phone capabilities for Ministers and senior officials. The SCNL is a joint PCO, CSE and SSC initiative that enables a modern, mobile and secure means of communications for Ministers and senior officials classified up to SECRET.
  • Transfer of $806K to the Global Affairs Canada for Foreign Service Directives
    • GAC is a common service provider for Government of Canada operations abroad and receives compensation for the increased cost of operations resulting from staff being posted at Canadian missions and liaison offices by other government departments.
  • Transfer of $493K to Royal Canadian Mounted Police for Law Enforcement Record Checks; and
  • Transfer of $150K to Employment and Social Development Canada to support Policy Horizons Canada.
    • Policy Horizons Canada is the Government of Canada's centre of excellence in foresight. Policy Horizon Canada's goal is to empower the Government of Canada with a future-oriented mindset and outlook to strengthen decision making.

• $294.5 million is requested in Supplementary Estimates (B), 2025–26 for the following previously approved defence investments under the Capital Investment Fund:
  • Automatic Identification Technology project – $79.9 million.
  • Ground-Based Air Defence project – $47.6 million.
  • Special Operations Forces Capability and Recapitalization Project – $34.5 million.
  • Housing of Primary Reserve Units Projects Sherbrooke – $30.5 million.
  • Counter Uncrewed Aircraft System project – $23.7 million;
  • Enhanced Recovery Capability project – $15.3 million;
  • Bridge and Gap Crossing Modernization project – $13.0 million;
  • Royal Canadian Navy Intelligence, Surveillance, Target Acquisition, and Reconnaissance Uncrewed Aircraft System project – $12.6 million.
  • Tactical Communications Modernization project – $10.8 million;
  • Canadian Forces Land Electronic Warfare Modernization project – $6.7 million;
  • Science and Technology Enhanced Research Capability project – $6.0 million;
  • Land Command Support System Tactical Command and Control Information System Modernization project – $3.9 million;
  • Land Vehicle Crew Training System project – $3.3 million;
  • Advanced Water Supply System project - $2.7 million;
  • Construction of Mess Hall, Dining, and Accommodations – Bagotville - $2.0 million;
  • Tactical Power Systems project - $1.7 million;
  • Naval Large Tug project - $0.2 million

Capital Investment Fund (CIF)

• The Capital Investment Fund (CIF) is a dedicated source of funds that matches the accrual profile of National Defence's existing and planned capital assets.
• Within its 20-year envelope, this funding can be used to mitigate risks within other projects, provide funding for new projects, or adjust for changes in scope to existing projects.
• As part of its prudent management of public funds, National Defence would only make funding requests that can be reasonably spent in a given fiscal year; additional funding, when needed, is requested through Supplementary Estimates.
• The CIF was introduced as part of Strong, Secure, Engaged, to enable a full 20-year view of capital investments under a consolidated defence budget.
• Prior to 2019, the planning of National Defence's capital program was managed on both a cash and accrual basis.
  • Accrual Basis: the cost of acquiring an asset is spread over its useful life. Operating funding for the asset is recorded in the year that the expenditure is made.
  • Cash Basis: funding for cash payments related to the acquisition of capital assets and operating funding is allocated in the year in which the expenditure is made (immediately).
• Some operating costs were covered on a cash basis, while others were managed on an accrual basis. This introduced significant complexity in planning for major equipment projects, which was a fundamental challenge of large procurements of the past.
• The CIF introduced important changes to how the defence budget is managed to ensure that the Defence Team has the flexibility to effectively manage key investments in defence capabilities.
• Annual CIF forecasts may exceed the supplied accrual funding by up to 5% in a given year, provided the overall 20-year accrual envelope is not exceeded.
• National Defence provides an annual CIF report to the Department of Finance and Treasury Board Secretariat to determine the affordability of the CIF when compared to the supplied funding.

• Grants and contributions are transfer payments made for the purpose of furthering the objectives of programs and initiatives of interest to National Defence.
• There are five Transfer Payment Programs at National Defence that received funding through Supplementary Estimates B:
  • Grants for Canadian Innovators and Accelerators of the Defence Innovation Accelerator for the North Atlantic ($5.2 million)
  • Canadian Defence Industry Resilience Program ($59.4 million)
    • A new program that supports the Defence Ammunition Production (DAP) initiative to support Canadian businesses, such as Centres of Excellence in the Munitions Supply Program (MSP), in expanding their defence production capacity for ammunition and explosives.
  • Remediation of the North Bay Jack Garland Airport Site ($6.7 million) and Temporary water treatment units for the City of Saguenay ($2.8 million). See note 13
    • Funding will continue to support the remediation of PFAS in the municipal water supply in North Bay and Saguenay.
  • Contributions in Support of the Canadian Coast Guard Integrated Program ($324,000)
    • The funding will support Musqueam Indian Band's capacity building to participate in marine emergency management activities and associated collaborative governance.
  •  
    • A new program that supports Canadian innovators and accelerators accepted to NATO DIANA.
• $380 million of Vote 10 was transferred from National Defence to various government departments in Supplementary Estimates B. This fund was part of the $1.4 billion National Defence received from Supplementary Estimates A to support the Strengthening Canada's Relationship with the Defence Industry initiative.

Capital Investment Fund (CIF)

• Both grants and contributions are types of "voted transfer payments," which means that funding for these payments must be approved by a Vote in Parliament. These payments do not include investments, loans, and loan guarantees, nor do they result in the acquisition of any goods, services, or assets by the Government. 
  • Grants: A grant is an unconditional transfer payment. This means that recipients must meet certain eligibility requirements before they receive a payment; however, they usually do not need to meet any further conditions after they receive the payment.
  • Contributions: A contribution is a conditional transfer payment. This means that recipients must first meet certain eligibility requirements before they receive payment, and are also subject to post-payment performance conditions that are specified in a contribution agreement. These conditions are based on a performance measurement strategy that is developed before the contribution is disbursed. The strategy must include an explanation of the program goals, as well as the expected results, performance targets, and internal audit and evaluation strategies. 

Grants and Contributions Received through Supplementary Estimates B

• Budget 2025 announced the Comprehensive Expenditure Review, an initiative to save $60 billion over five years through rationalization of the public service and reductions in discretionary spending on consulting, professional services, and travel.
• While the Comprehensive Expenditure Review will have minimal impact on DND, it will have a significant impact on other government departments. DND's expenditure reductions will be largely centred on a fleet divestment strategy, totalling $1.1 billion over four years.
• Of the $772.1 million in unspent funding in 2024-2025, $734.2 million (excludes spending of proceeds from the disposal of surplus Crown assets available for use in subsequent years) or 95.1% of the amount is available for defence spending in future years. This includes:
  • $364.0 million in Carry Forward (operating expenditures) including $97.1 million for CAF-DND Class Action Settlements;
  • $217.4 million for adjustments to spending on capital equipment and infrastructure;
  • $109.3 million for the Medium Range Air-to-Air Missile (MRAAM) acquisitions;
  • $43.6 million for various contribution programs;

National Defence Spending

• Our North, Strong and Free committed to investing $8.1 billion over the next five years and $73 billion over the next 20 years in National Defence.
• With these funding commitments, National Defence spending is on track to more than double in fiscal year 2025-26 compared to fiscal year 2016-17, when Strong Secure Engaged was released.
• At the North Atlantic Treaty Organization (NATO) Summit in Washington D.C. in July 2024, the government announced its commitment to continue increasing Canada's defence spending in order to reach 2% of Canada's gross domestic product (GDP) by 2032.
• In June 2025, Prime Minister Carney committed to expedite core defence spending to reach 2% of GDP this fiscal year – seven years ahead of schedule. Core defence spending will then continue growing to 3.5% of GDP by fiscal year 2035-36.
• In Budget 2025, the Government laid out its plan to grow defence spending – announcing an investment of $81.8 billion over five years, starting in fiscal year 2025-26.

Parliamentary Budget Officer Report

• The PBO recently published a report titled Planned Capital Spending under Canada's Defence Policy: 2025 Update
• PBO noted that over the period 2017-18 to 2023-24, actual capital spending for National Defence fell short of planned amounts by a total of $18.5 billion.
  • Capital Investment Fund – introduced under the 2017 defence policy, Strong, Secure, Engaged, provides National Defence with significant flexibility to manage changes in project scope and schedules, and to reallocate funding as necessary toward projects that are ready to advance to the next phase.
  • Capital funding that National Defence could have accessed during a fiscal year, but did not request through the Estimates process, is not lost to the department — the funding remains in the Capital Investment Fund, available for future use when needed to advance capital projects.

Lapsed Funding

• National Defence introduced a flexible funding model in 2017 to re-allocate unspent funds to support emerging priorities or future needs.
• To mitigate lapses in funding authorized by Parliament, National Defence is taking the following actions:
  • Improving its capital funding forecast to ensure that the Department does not request more funding authorities from Parliament than required;
  • Funding new projects from surplus in-year funding rather than requesting additional funding from Parliament;
  • Requesting funding for additional military deployments later in the process to ensure only the required funding authorities are requested (to prevent operating lapse); and
  • Monitoring forecasted exchange rates to better anticipate their impact on funding estimates (to mitigate grants and contributions lapse).

Supplementary Estimates (B)

• Through Supplementary Estimates B, National Defence is transferring $961.9 million to other organizations to support defence research and development and the Canadian defence industry.
• These transfers include $528.5 million to the Canadian Space Agency, $156.4 million to the National Research Council Canada, and $111.8 million to Innovation, Science and Economic Development Canada.

Budget 2025

• Budget 2025 commits $6.6 billion over five years to the Defence Industrial Strategy. Of this, a total of $4.6 billion has already been allocated to a series of initial investments starting this year, under the forthcoming Defence Industrial Strategy to improve access to capital, drive research and innovation, bolster domestic supply chains, and grow critical resource stockpiles.
• This includes:
  • $182.6 million over three years, starting in 2025-26, for DND to establish a sovereign space launch capability.
  • $68.2 million over three years to establish the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS).
  • $1.0 billion in 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, starting 2025-26, to develop and commercialise dual civilian-military technologies.
  •  $334.3 million over five years, starting in 2025-26, 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.
  • $443.0 million over five years, starting in 2025-26, to support the development of innovative critical minerals processing technologies, support joint investments with Allies in Canadian critical minerals projects, and develop a critical minerals stockpiling mechanism to strengthen Canadian and Allied national security.

• National Defence works closely with partners in other departments such as Public Services and Procurement Canada (PSPC), the newly created Defence Investment Agency, Innovation, Science and Economic Development Canada (ISED), as well as defence industry experts, to procure the equipment and services the Canadian Armed Forces (CAF) need.
• Defence follows a rigorous project planning and procurement process that ensures the equipment procured meets all the CAF requirements, while ensuring financial value for Canadians as well as economic growth for industry.
• National Defence's project management approach is governed by policy set by the Treasury Board of Canada, which states that:
  • projects achieve value for money;
  • sound stewardship of project funds is demonstrated;
  • accountability for project outcomes is transparent; and
  • outcomes are achieved within time and cost constraints.
• Canada has an Industrial and Technological Benefits (ITB) policy which leverages defence and Canadian Coast Guard procurements to contribute to jobs, innovation and economic growth across the country.

2022 Canadian defence industry key figures*

• Generated $14.3 billion in revenues from its more than 585 firms.
• Contributed $9.6 billion in Gross Domestic Product (GDP).
• Contributed over 81,200 jobs to the Canadian economy.
• Exported over $7.0 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 time more Research and Development intensive than the broader manufacturing sector.

*Facts and figures from the Innovation, Science and Economic Development Canada State of Canada's Defence Industry Report – Spring 2024.

Investments

• 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 NORAD’s ability to deter and defeat aerospace threats by modernizing air weapon systems;
  • $15.68 billion to ensure the Canadian Armed Forces (CAF) 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 NORAD’s ability to defend North America through investments in science and technology.

• Beyond the NORAD modernization investments that were announced in 2022, Canada is also modernizing 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 (F-35s), Canadian Multi-Mission Aircraft (P-8 maritime patrol aircraft), 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 and a new fleet of Airborne Early Warning 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.

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

• On March 18, 2025, Prime Minister Carney announced Canada's intention to partner with the Government of Australia on advanced OTHR technology. Subsequently, in June 2025, Canada and Australia signed a technology partnership to advance collaboration to rapidly develop Canada's A-OTHR capability.
• This system, based on Australia's Jindalee Operational Radar Network (JORN) technology and adapted to the challenges of Northern surveillance, will provide advanced early warning and long-range surveillance, enabling faster CAF detection and tracking of a wide range of threats in our Northern air and maritime approaches, while strengthening NORAD domain awareness in the defence of Canada and North America.
• A-OTHR will be based in Southern Ontario. On July 17, 2025, as part of Stage 1, the selection of the first transmit site, in Kawartha Lakes, and receive site, in Clearview Township, was announced. Initial work is anticipated to begin at the Kawartha Lakes site in winter 2026 while the site study remains ongoing at the Clearview site.
• On November 27, 2025, an article was published in the Ottawa Citizen on the construction of the A-OTHR and reported that farmers and other residents of Clearview Township are pushing back against National Defence's plan for the new radar site. It questioned why the capability cannot instead be located at nearby CAF properties, such as the Meaford training centre or CFB Borden.
• Stage 1 will be completed by the end of 2029 which will provide an initial capability, and the full A-OTHR capability is anticipated by 2043. Work is underway to shorten the date of full operational capability.

CAF Contribution to NORAD

• 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.
• Forward Operating Locations in Inuvik, Yellowknife, Iqaluit, and Deployed Operating Base Goose Bay will be upgraded to support NORAD activities. The facilities at these locations can currently accommodate fighter aircraft and other assets when required.
• 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 45 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 that have direct ties to NORAD Headquarters in Colorado.
• 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.

Supplementary Estimates (B)

• Through Supplementary Estimates (B), National Defence will receive $59.4 million in targeted funding to strengthen and expand the country's ability to produce critical munitions domestically.

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, 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.

Munitions Supply Program (MSP) contracts and initiatives

• In February 2023, the Government of Canada awarded a $4.8 million contract to IMT Defence to increase the production capacity for the M107 variant of the 155mm ammunition projectile bodies. The production capacity has been increased to 5,000 rounds per month, up from 3,000 rounds per month, as of December 2023.
• In March 2024, National Defence announced that $4.4 million had been awarded through the Innovation for Defence Excellence and Security (IDEaS) program to General Dynamics Ordnance and Tactical Systems - Canada (GD-OTS Canada) and IMT Precision to fund research projects improving design and production of more modern variants of 155mm ammunition, including through automation, new materials and prototypes.
  • 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 last year;
  • GD-OTS Canada (Repentigny) was awarded a contribution agreement ($1,968,825) to investigate automating key areas of production of 155 mm projectiles, such as casting and solidification processes, inspecting for defects using an X-ray, and transporting materials using automated guided vehicles. This work is expected to be completed by March 2026; and
  • 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 spring 2026.
• The Government of Canada has also committed to accelerating the establishment of a new artillery ammunition production capacity to provide a reliable supply of North Atlantic Treaty Organization (NATO) - standard ammunition to the Canadian Armed Forces and our Allies. Work is underway with the companies to refine the engineering and costs for this initiative.
• On June 9, 2025, the Prime Minister announced a $9 billion increase in defence spending for fiscal year 2025-26. This includes additional funding for domestic ammunition production and a bolstered industrial capacity.

NATO Air Battle Decisive Munitions (ABDM) Framework

• On April 17, 2024, Canada joined NATO's ABDM framework.
• Launched in 2014, the ABDM framework enables Allies to aggregate their munitions and missile requirements and convert them into multinational buys.
• ABDM strengthens NATO's deterrence and defence posture and provides more options for Allies to increase their support to Ukraine.

Budget: $27.7 billion

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

Timeline:

• Delivery of initial eight aircraft: 2026-2027 to Luke Air Force Base, Arizona, for the training of Canadian pilots and aircrew.
• First Aircraft Arrival in Canada: 2028 to Canadian Forces Base Cold Lake, AB
• 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 alliance commitments to the North American Aerospace Defense Command (NORAD) and the North Atlantic Treaty Organization (NATO) until the scheduled retirement of the fleet in 2032.

Supplementary Estimates (B)

• Supplementary Estimates (B) includes $476 million for the Future Fighter Capability Program to fulfill financial commitments, including payments under the F-35 MOU with the US Government.
• This funding is not new funding but is being reprofiled from future years.

F-35 Procurement Review

• On March 14, 2025, Prime Minister Mark Carney announced a review of the F-35 acquisition, including whether it remains the best choice for Canada.
• The review considers operational needs, NORAD and NATO commitments, industrial benefits, strategic partnerships, and potential alternatives in light of current domestic and global realities.

F-35 Acquisition

• 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 in place 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) and Production, Sustainment and Follow-on Development (PSFD) Memorandum of Understanding (MOU)

• The JSF Program is a multinational cooperative effort to build an advanced combat aircraft equipped to fulfill multiple roles.
• The F-35 was conceived, developed, and continues to be operated and sustained as a joint/coalition platform, built on strong partnerships with the U.S., 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, and in 2006 became a partner in the PSFD MOU, which expires in December 2051. Eight partner countries cooperate under the JSF PSFD MOU: Australia, Canada, Denmark, Italy, Netherlands, Norway, United Kingdom, and the United States. Currently, 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.

Economic Benefits

• As a partner in the F-35 program, Canada has access to industrial participation in production of the aircraft.
• Since 1996, over 110 Canadian companies have contributed to the production and development 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 $3.2 million dollars of Canadian-made components.
• The acquisition and initial sustainment of the F-35 project has 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, approximately 1,000 jobs will be generated by the significant construction initiatives in Cold Lake and Bagotville.
• More jobs are anticipated as repair overhaul facilities are stood up and infrastructure progresses on other operating locations to support extended F-35 operations.
• Total Construction investment for the two Fighter Squadron Facilities in Bagotville and Cold Lake is valued at approximately $2 billion.
• Further work to upgrade infrastructure, hangars, runways and services at these two bases and other operating locations is valued at over $7 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 3,000 aircrafts worldwide.
• In November 2024, the Government of Canada announced that L3Harris 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.

• Total Estimated Cost Batch 1 Ships: $22.2 billion (3 ships).
• Project Status:
• In February 2019, Canada selected the River-class Destroyer design, based on the BAE Systems' Type 26 Global Combat Ship. Irving Shipbuilding (ISI) (prime contractor) contracted Lockheed Martin Canada for the design team.
• Canada worked with ISI, Lockheed Martin Canada, and their subcontractors to evolve the selected ship design and systems integration.
• On March 3, 2025, the Government of Canada awarded a build contract to ISI for the construction of Batch 1 ships (3 ships). Full-rate production started in April 2025.
• The initial contract includes the construction, testing and trialling, as well as delivery of the first of three ships and necessary supports such as training, maintenance and logistics support data.
• Delivery of the first ship, His Majety's Canadian Ship Fraser, is expected in the early 2030s, with the final ship (ship 15) expected by 2050.

Economic Benefits:

• The project will promote growth of key industrial capabilities in Canada by creating investments in innovation, supplier development, and export opportunities with a focus on cyber security and the marine sector.
• This initiative will be especially significant to Atlantic Canada, creating more jobs and opportunities in the region that workers can count on.

• The River-class Destroyers are fast, manoeuvrable, long endurance warships which will replace the retired Iroquois-class Destroyers (4 ships) and the Halifax-class Frigates (12 ships). This single combat-capable class of ship will be capable of meeting multiple threats on the open ocean and the coastal environment.
• As the future warship of the Royal Canadian Navy (RCN), the River-class Destroyers must be capable of conducting a full range of military operations in high-threat environments, including counter-terrorism as well as humanitarian and sovereignty enforcement operations.

PFAS (per- and polyfluoroalkyl substances)

• PFAS are man-made chemicals that are used as surfactants, lubricants, repellents (for dirt, water, and grease). They can be found in certain firefighting foams, textiles (including carpets, furniture, and clothing), cosmetics, and in food packaging materials.
• From 1972 until the early 2010s, National Defence conducted firefighter training with foams. These activities were conducted according to the accepted practices and regulations of the time.
• While water is now used for training, foams are still used for emergencies as they are the safest and most effective way to extinguish fuel fires. When firefighting foams containing PFAS are used, National Defence follows standardized procedures to try to contain the foams and minimize their impacts on the environment as much as possible.

PFAS in Saguenay and at Canadian Forces Base (CFB) Bagotville

• PFAS have been found in surface water, sediment, soil, and groundwater on CFB Bagotville property.
• The presence of PFAS at CFB Bagotville is related to the past use of firefighting foams for training and operations.
• In 2023, PFAS were detected in three of the five municipal supply wells in the borough of La Baie. Based on the results, action was recommended by the province.
• Temporary treatment began in early 2024. According to the province, treatment has been successful in reducing PFAS exposure in municipal water to acceptable levels.
• The Government of Canada is providing up to $15.5 million in funding to the City of Saguenay for a short-term solution to address the presence of PFAS in the municipal water supply.
• In addition, through Supplementary Estimates (B), the Government of Canada is providing approximately $2.8 million to the City of Saguenay to support a short-term solution through 2026 to address PFAS in the municipal water supply.

PFAS at Jack Garland Airport and at 22 Wing North Bay

• PFAS have been found in groundwater, surface water, soil, sediment and fish on and around 22 Wing North Bay.
• The presence of PFAS at 22 Wing North Bay is related to the past use of firefighting foams for training and operations at the Wing and at the Jack Garland Airport.
• PFAS was detected in nearby private wells and in North Bay's municipal water supply. The Department of National Defence (DND) provides an alternate water source or treatment to residents with PFAS levels above provincial criteria, at no cost. PFAS levels in the municipal water supply comply with provincial criteria.
• DND continues to work in collaboration with the City of North Bay, the Ontario Ministry of the Environment, Conservation and Parks and the North Bay Parry Sound District Health unit to address the issue.
• The Government of Canada is providing up to $20 million in funding to the City of North Bay to remediate PFAS contamination at the Jack Garland Airport. Funding is coming through the Shared Responsibility Framework, DND is the sponsoring Department.
• In addition, through Supplementary Estimates (B), the Government of Canada is providing approximately $6.7 million to the City of North Bay to remediate PFAS contamination at the Jack Garland Airport.

Federal Contaminated Sites Action Plan (FCSAP)

• Federal contaminated sites are land owned or leased by the federal government, or properties where the federal government has accepted responsibility for the contamination.
• Through the FCSAP, National Defence is investing resources to clean up historical contamination and minimize future environmental impact from military activities.
• In Main Estimates 2025-26, National Defence obtained $48.5 million in incremental funding to reduce legacy contamination by remediating sites including:
  • Esquimalt Harbour Remediation Project (British Columbia);
  • Firefighting Training Area, 3 Wing Bagotville (Quebec);
  • Stony Point (Former Camp Ipperwash) (Ontario); and
  • Trichloroethylene (TCE) Contamination, Canadian Forces Base (CFB) Valcartier (Quebec).

Canadian Coast Guard Towing:

• The Canadian Coast Guard (CCG) has contracted emergency towing capacity and capability on the West Coast of Canada to protect mariners and the marine environment from pollution risks resulting from large disabled vessels.
• The CCG does not have large vessel towing capability within its current fleet.
• As part of the Oceans Protection Plan, the Government of Canada leased two emergency towing vessels on the West Coast as an interim measure while a National Strategy for Emergency Towing was developed.

Spot Chartering

• Spot charters ensure rapid response for essential marine services—icebreaking, buoy maintenance, fish harbour access, and flood prevention—when Coast Guard vessels are unavailable.

Marine Pollution preparedness and response

• The CGG is the lead agency that responds to marine pollution in Canadian waters when the source of pollution is:
  • ships,
  • unknown sources,
  • oil handling facilities, as a result of loading or unloading oil to or from ships,
  • foreign waters that could affect Canadian waters.

Canada's Oceans Protection Plan

• In 2016, the Government of Canada launched the $1.5 billion Oceans Protection Plan (OPP).
• The OPP is a national, whole-of-government plan to protect our oceans and coastlines from the potential impacts of marine shipping, and to ensure the health of our oceans.
• It further improves marine safety and responsible shipping, protects Canada's marine environment, and offers new possibilities for Indigenous and coastal communities.
• The OPP includes Transport Canada as the designated lead department; Fisheries and Oceans Canada, Canadian Coast Guard (CCG), Environment and Climate Change Canada and Natural Resources Canada.
• The OPP included a commitment to immediately increase emergency towing capacity on the West Coast on an interim basis, while Transport Canada and the CCG are completing the development of a long-term national approach for emergency towing.
• Under OPP, investments were made to increase emergency towing capacity in Canadian waters, which included:
  • Leasing two emergency towing vessels currently stationed off the coast of British Columbia,
  • Adding towing equipment to major CCG vessels.

Ensuring Operational Continuity Through Spot Chartering:

• Spot charters ensure rapid response for essential marine services—icebreaking, buoy maintenance, fish harbour access, and flood prevention—when CCG vessels are unavailable.
• Dedicated incremental funding secures charter availability for these tasks, a growing need as more CCG ships enter life-extension phases.

Marine Pollution preparedness and response

• The CCG receives all reports of marine pollution in Canadian waters 24 hours a day, 365 days a year. To respond they:
  • asses the risk,
  • provide notifications to partners, including Indigenous and coastal communities,
  • work with polluters and partners
  • respond or oversee the response to incidents

Supporting CCG's Mandate When Polluters Can't Pay:

• Under Canadian law, vessel owners pay for pollution incidents or hazardous vessels, but when no owner exists, the costs incurred by CCG are later claimed through the Ship Fund.
• The $3.58 million requested through Supplementary Estimates (B) updates CCG's reference level to reflect funds recovered from Ship Fund, insurers, and vessel owners, ensuring financial alignment with actual response activities.

• Budget 2025 proposes to provide $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 over $9 billion in 2025-26 that was announced by the Prime Minister in June 2025.
• The Budget highlights investments to meet the North Atlantic Treaty Organization's (NATO) 2% of gross domestic product (GDP) target this year and put Canada on a pathway to meet the NATO Defence Investment Pledge of investing 5% of GDP in defence by 2035.

• The 2025 Federal Budget, Canada Strong, was introduced on November 4, 2025.
• Budget 2025 states that Canada will make generational investments totaling over $280 billion across four key pillars on an accrual basis over 5 years:
  • Housing: $25 billion
  • Infrastructure: $115 billion
  • Defence and Security: $30 billion
  • Productivity and Competitiveness: $110 billion
• Under the theme of "Defending Our Sovereignty," Budget 2025 lays out the Government's plan to "secure Canada, fulfill our responsibility to shared security with our Allies, build a world class defence industrial base, and establish a new Defence Investment Agency that will accelerate the procurement process."

Rebuild, Rearm, Reinvest

• Budget 2025 proposes to provide $81.8 billion over five years on a cash basis, starting in 2025-26, 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.
  • $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.
  • $6.6 billion over five years, starting in 2025-26, to strengthen Canada's defence industry through a Defence Industrial Strategy.
  • $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 (PSPC) for complementary initiatives to support Canada's defence capabilities.

Defence Industrial Strategy

• Budget 2025 announces $6.6 billion over five years for the forthcoming Defence Industrial Strategy, including $4.6 billion already allocated for the Strategy's initial investments.
• National Defence initiatives outlined in the Budget include the establishment of the Bureau of Research, Engineering and Advanced Leadership in innovation and Science (BOREALIS), $1 billion for a Defence and Security Mobilization Plan at the Business Development Bank of Canada and funding to establish a sovereign space launch capability.
• The Budget commits to publish a fulsome Defence Industrial Strategy in the coming months.

Defence Investment Agency (DIA)

• The DIA will focus on defence procurements valued at $100 million and above, including submarines and other critical capabilities that the CAF requires.
• Budget 2025 proposes to provide $30.8 million over four years, starting in 2026-27, with $7.7 million ongoing to PSPC to establish the DIA.
• Budget 2025 proposes to provide $52.5 million over five years, starting in 2026-27, with $12.2 million ongoing to PSPC to modernise and increase capacity for the Industrial Security Program to meet the needs of the DIA and support Canada's defence industry.

Operations

• Operations REASSURANCE and AMARNA are included in Budget 2025.
• Specifically, the Budget reaffirms the Prime Minister's announcement in August 2025 regarding the renewal of Operation REASSURANCE ($2.7B over three years).
• The Budget further proposes $300.1M over three years for Operation AMARNA ($155.8M of which is to be funded through existing National Defence reference levels).

Defence Spending

• FY 2025-26: Canada's defence spending is projected to reach 2.01% of its Gross Domestic Product (GDP), with 22.6% devoted to major equipment, up from 1.47% of GDP and 18.3% on major equipment in comparison to FY 2024-25.

North Atlantic Treaty Organization (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.

• On June 25, 2025, Canada and its NATO Allies agreed to a new Defence Investment Pledge of investing 5% of GDP annually by 2035.
• As part of this 5% pledge, Canada will invest 3.5% of GDP for core defence expenditures, expanding on the June 9, 2025, announcement, which will bring Canada to 2% this year.
• This includes strengthening the foundation of National Defence through investments in our people, capabilities, infrastructure, and digital capabilities.
• An additional 1.5% of GDP will be dedicated to investments in critical defence and security-related expenditures, that will – among other things – protect our critical infrastructure, defend our networks, unleash innovation, and strengthen our defence industrial base.

Other Government Department and Agencies' Contributions

• As of September 2, 2025, the Canadian Coast Guard (CCG) moved under the National Defence portfolio. With this move, the entire budget of the CCG will be included in our NATO contributions going forward. Historically, only a portion of the CCG's budget counted towards Canadian defence expenditures.
• Eligible funding to other government departments has also counted towards Canada's NATO contributions, such as pensions for members. This includes Veterans Affairs Canada, the Treasury Board of Canada Secretariat, Global Affairs Canada, Shared Services Canada, and other government organizations that cannot be disclosed publicly.

Parliamentary Budget Officer (PBO) Analysis

• The PBO published a report on October 30, 2024, entitled in follow-up to its update in July 2024.
  • The report stated that additional spending would be required to meet the NATO 2% commitment but concluded that such expenditures are possible without unduly impacting Canada's deficit-to-GDP ratio.
  • However, it reiterated a position that the PBO took in summer 2024, that ONSAF underestimates GDP growth and that, as a result, Canada's defence budget would have to rise significantly to meet the NATO 2% target.
  • The PBO labelled the ONSAF GDP forecast as "erroneous" as it assumed a nominal GDP growth rate of 1.7%, which "does not even keep pace with inflation and therefore assumes a 4-year economic recession, almost twice the length of the country's longest recession in the last 40 years".
• The PBO relies on its own methodology for calculating GDP, which it says is broadly similar to the Department of Finance's methodology.
• National Defence uses Canadian GDP figures provided by NATO, which use several data sources, including the Organization for Economic Co-operation and Development (OECD), and is a standard practice for NATO Allies.
• The PBO's 2025 update on its Planned Capital Spending under Canada's Defence Policy report was released on October 29, 2025.
• The report analyses Department of National Defence (DND) planned and actual capital spending since the 2017 defence policy, Strong, Secure, Engaged.
• The PBO report includes the following findings:
  • That Defence spending is increasing to unprecedented levels
    • The report highlights a projected spend of $322.9 billion between 2024-25 to 2043-44, with annual spending projected to peak at $25.7 billion in 2030-31.
  • That National Defence continues to underspend which results in lapsing or reprofiling funding
    • Over the period 2017-18 to 2023-24, actual capital spending fell short of planned amounts by a total of $18.5 billion.
  • Delayed spending results in higher costs.
• The increase in planned capital spending reflects the addition of new projects as well as revisions to existing projects under the updated defence policy. The Government's commitment to meet NATO spending targets contributes to this increase, though this report does not assess the capital plan relative to those targets.

• Each year, over 100,000 contracts are awarded by, or on behalf of, National Defence.
• National Defence's contracting authorities have risen to:
  • $7.5 million for competitive goods and services contracts
  • $375,000 for non-competitive goods and service contracts
• This is a significant step in streamlining the procurement process, giving the Department the authority to directly award over 95% of its contracts in FY 2024-25.

• The Defence Team works closely with partners in other departments such as Public Services and Procurement Canada (PSPC), Innovation, Science and Economic Development Canada (ISED), as well as defence industry experts, to procure the equipment and services our forces need.
• We follow a rigorous project planning and procurement processes that ensure the equipment procured meets all the CAF requirements, while ensuring financial value for Canadians as well as economic growth for industry.
• The Defence Investment Agency, announced by the Prime Minister on October 2, 2025, has been created within PSPC to accelerate and modernize defence procurement for Canada. Its mission is to deliver equipment, technology, and capabilities to the Canadian Armed Forces and Canadian Coast Guard (CCG) more quickly and efficiently, while growing Canada's domestic industrial base through strategic partnerships, targeted investments and active engagement with Canadian industry.
• National Defence's project management approach is governed by policy set by the Treasury Board of Canada, which states that:
  • projects achieve value for money;
  • sound stewardship of project funds is demonstrated;
  • accountability for project outcomes is transparent; and
  • outcomes are achieved within time and cost constraints.
• Canada has an Industrial and Technological Benefits (ITB) policy which leverages defence and CCG procurements to contribute to jobs, innovation, and economic growth across the country.

Streamlining Defence Procurement

• PSPC-led Risk-Based Approach to Contract Approval enables lower complexity projects to progress through the acquisition process with fewer check points, allowing the overall program to progress towards a timely delivery of projects and capabilities.
• The Tailored Project Approval Process was implemented in 2017 to provide a flexible and scalable framework for National Defence to fully leverage its Organizational Project Management Capacity Assessment Level, through improved internal coordination, increased delegation, and strengthened approval processes. Low to Medium Risk Projects that follow the tailored project approval process progress on average two to three times quicker.
• In November 2022, National Defence's Project Approval Directive was amended regarding the Urgent Operational Requirement process, resulting in significant time savings throughout the Project Phases for those capabilities that are most urgently needed.
• In July 2025, amendments to the Treasury Board Directive on the Management of Projects and Programmes removed the requirement for departments to seek Treasury Board approval at the Project Definition stage for projects that fall within a minister's project approval authority.
• National Defence works with government and industry partners to optimize defence procurement, including through new initiatives such as Continuous Capability Sustainment (CCS).
  • The CCS initiative focuses on maintaining and evolving military capabilities over time, rather than replacing them through large, discrete mid-life acquisition projects. This ensures that capabilities remain operationally relevant, effective, and aligned with evolving threats and emerging technologies.
• Through its Digital Transformation Initiative, the Department will upgrade its enterprise resource planning systems to modernize business processes, improve operational effectiveness, and strengthen decision-making. By increasing analytics use and building trust in system data, National Defence will better harness critical information to guide decisions.

Professional Development of Procurement Staff

• Several steps have been taken to strengthen the capacity of the procurement specialist workforce (project managers, procurement officers, and cost estimators).
  • The Project Manager Competency Development program provides project managers with development and learning opportunities through a defined framework for accreditation. Within project implementation organizations, project managers are matched with projects of an appropriate level of complexity and risk.
  • The Competency-Based Project Management Organization seeks to enhance project management as an aspect of organizational culture with the following goals:
    • Develop an engaged workforce that demonstrates the desired project management competencies;
    • Improve workforce planning to ensure the right people are matched with the right projects; and
    • Provide an inclusive project management environment and improve overall delivery of projects.
  • A Centre for Costing in Defence (CCD) was established to generate life cycle cost estimates for each project as it advances through the project life cycle. The cost estimates are based on the best possible information available at the time and evolve as more information is known. The cost estimates are provided to project sponsors and decision makers, who use them to set realistic budgets and make informed decisions.
  • An 'Academy' is being established with other key government departments, including PSPC, to recruit and develop procurement and materiel management specialists throughout their careers. The Fundamental Program was launched in September 2023, and the development of additional programs are underway.

Canadian Coast Guard (CCG):

• The CCG owns and operates the federal government's civilian fleet and provides key maritime services to Canadians, including:
  • Maritime search and rescue (SAR)
  • Aids to navigation and waterways management
  • Marine communications and traffic management
  • Marine environmental and hazards response
  • Icebreaking operations
  • Maritime security
  • Support to other government departments
• The CCG has approximately 6,700 employees and is organized into four regions:
  • Western - approximately 1,400 employees
  • Central - approximately 1,670 employees
  • Atlantic approximately 2,110 employees
  • Arctic - approximately 120 employees
  • In addition, a national headquarters in Ottawa provides functional leadership (1,400 employees, including employees of the Canadian Coast Guard Academy)
• The CCG's current fleet is made up of 126 vessels and 23 helicopters, this includes:
  • 26 Large Vessels
  • 4 Interim Icebreakers
  • 31 Small Vessels
  • 61 SAR Lifeboats
  • 4 Air Cushion Vehicles
• Current CCG assets include:
  • 21 operational bases
  • 12 Marine Communications Traffic Services Centres (MCTS)
  • 3 Regional Operations Centres (ROC)
  • 2 Maritime Rescue Sub-Centres (MRSC)
  • 45 Lifeboat Stations
  • 25 In-shore Rescue Boat Stations
  • 1 Arctic Marine Response Station
  • 17,000 fixed and floating aids to navigation
  • Close to 200 communication sites
• Environmental response depots and caches

Transition

• On June 9, 2025, it was announced that the Canadian Coast Guard (CCG) would be integrated into the Defence portfolio. The transfer became effective on September 2, 2025, through an Order in Council.
• On October 10, 2025, the Minister of National Defence formally welcomed the CCG to the Defence Team at a ceremony in Dartmouth, Nova Scotia.
• The full transition will take place over the coming months, as the Department of National Defence (DND) and the Department of Fisheries and Oceans (DFO) finalize a memorandum of understanding to implement the transfer.
• Online resources are available to all Defence Team members, including CCG and supporting DFO employees, to address questions regarding the transition and potential impacts on them and their work.

Arctic Presence

• The CCG is one of the most visible federal organizations in the Arctic, with a regional presence of more than 100 full-time employees responsible for program delivery. It plays a key role in advancing federal priorities including reconciliation, climate change adaptation and mitigation, science and research, and maritime safety and security.
• Its history in the Canadian Arctic spans more than 60 years and includes key activities such as assisting the shipping industry during annual Arctic resupply missions.

Key Synergies with the Department of National Defence (DND) and Canadian Armed Forces (CAF)

• CCG's transition to DND enhances its ability to coordinate with security partners, including:
  • Better procurement opportunities and supply chain coordination;
  • Increased interoperability and a unified approach to Maritime Domain Awareness;
  • Exchange of expertise in training, exercising, and Arctic operations;
  • Enhanced coordination and strategic planning;
  • Bolstered technology and innovation activities, including cyber and security capabilities; and
  • Recruitment and retention strategies for operational and seagoing personnel.

Considerations Unique to CCG

• As a civilian special operating agency (SOA), the CCG retains unique operational and organizational authorities, including:
  • Domestic programming for marine navigation and response services, including icebreaking for industry;
  • Response readiness to meet the demands of increased marine vessel traffic in Canadian waters;
  • Management of CCG's civilian fleet under commercial regulations;
  • Represented public service workforce and collective bargaining implications;
  • International commitments and conventions;
  • Specialized relationships with maritime industry; and
  • Legislation.
• CCG's primary enabling legislation includes:
  • The Oceans Act
  • The Canada Shipping Act
  • The Wrecked, Abandoned or Hazardous Vessels Act

The Oceans Act and Bill C-12

• The Oceans Act is a central piece of legislation, granting CCG the responsibility to provide marine services to Canadians and in Canada's waters.
• Amendments to the Oceans Act to expand the CCG's services to include security activities were introduced in June 2025 in Bill C-2, the Strong Borders Act, and later in Bill C-12, Strengthening Canada's Immigration System and Borders Act, tabled on October 8, 2025.
• The intent of the amendments was to strengthen sovereignty and maritime domain awareness, particularly in remote Arctic waters, by enabling the CCG to conduct security patrols and collect, analyze, and share information and intelligence for security purposes.
• The Standing Committee on Public Safety and National Security completed clause-by-clause review of Bill C-12 on November 25, 2025, and returned the Bill to the House of Commons for further consideration.

The Canada Shipping Act

• The Canada Shipping Act gives the Minister power, responsibilities, and obligations concerning aids to navigation, search and rescue, pollution response, and vessel traffic services.

The Wrecked, Abandoned or Hazardous Vessels Act

• The Wrecked, Abandoned or Hazardous Vessels Act was introduced in 2019 to address vessels of concern, including wrecked, abandoned, hazardous or worn-down boats, which can create public health, safety, environmental and economic issues for impacted communities.
• Under the Act, the CCG is responsible for:
  • Addressing all vessels and wrecks, including those that pose or may pose a hazard in all Canadian waters;
  • Coordinating and conducting hazard assessments on vessels and wrecks wherever located, including enforcement actions;
  • Enforcing the Nairobi International Convention on the Removal of Wrecks, 2007 in Canadian waters and the exclusive economic zone of Canada;
  • Taking appropriate actions on dilapidated vessels that are left on property under the responsibility of the Minister of Fisheries and Oceans.

Readiness

• The Defence Team remains focused on strengthening the core components of readiness - our people, equipment, training, and sustainment.

Universality of Service (U of S) Policy

• A modernized U of S Policy came into effect April 1, 2025. The new policy precisely and objectively defines a set of minimum operational standards for all CAF members that reflect the realities of military service in the 21st Century.
• The modernized policy is underpinned by evidence-based and command-endorsed Minimum Operational Standards which are comprised of 14 duties and eight working conditions.
• The policy is an interdisciplinary approach that incorporates subject matter expertise in the support provided to CAF members who experience challenges in temporarily meeting U of S minimum operational standards because of medically related or other factors.

Chief of the Defence Staff/Deputy Minister Directive for CAF Force Posture and Readiness

• CAF Readiness as Core Business: Readiness is central to Defence operations, guiding force generation, employment, and strategic advice to the Government of Canada, with an emphasis on supporting concurrent operations and modernization in line with national priorities.
• Force Posture and Readiness (FP&R) Framework: The Framework serves as the primary tool to direct, measure, and analyze CAF readiness through agile planning, reliable data, and integration into Defence governance to inform operational and financial decisions.
• FP&R Improvements: The FP&R Framework is being reinvigorated via an internal campaign plan with three main Lines of Effort: 1) providing better direction to force generators aligned to strategic priorities, 2) digitally transforming the enterprise to reduce the burden to users and improve analytics, and 3) connecting it to governance to inform decision making and resource allocation.
• Department-wide Responsibilities and Governance: Level 1 groups are tasked with supporting FP&R through consistent reporting, capability development, governance contributions, and integration of readiness data into planning and decision-making.

Universality of Service (U of S) Policy

• U of S is a critical policy that helps ensure that the Canadian Armed Forces (CAF) meets its mission obligations.
• A modernized U of S Policy came into effect April 1, 2025. The new policy precisely and objectively defines a set of minimum operational standards for all CAF members that reflect the realities of military service in the 21st Century.
• The modernized policy is underpinned by evidence-based and command-endorsed Minimum Operational Standards which are comprised of 14 duties and eight working conditions.
• The policy is an interdisciplinary approach that incorporates subject matter expertise in the support provided to CAF members who experience challenges in temporarily meeting U of S minimum operational standards because of medically related or other factors.

Readiness Levels

• The 2024-2025 Departmental Results Report noted that 61% of force elements were ready for operations in accordance with established targets (a decrease of 5.7% compared to fiscal year 2023-2024). The 2025-26 Departmental Plan's target is for at least 90% of force elements to be ready for operations by 2032.

• 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 October 31, 2025, the current Force Strength is approximately 65,700 Regular Force and 25,200 (Average Paid Strength) Primary Reserve Force members. This is approximately 10,600 short of the authorized strength.
• Between April 1, 2025, and October 31, 2025, the CAF received approximately 71,200 applicants.
  • Canadian citizens represent approximately 70% (approximately 50,600) of the total applicant pool.
  • Permanent Residents represent approximately 30% (approximately 20,600) of the pool.
• In FY 2025-2026 (as of October 31, 2025), approximately 6700 individuals joined the Regular Force and Primary Reserve, 18.8% of whom were women and 23.4% of whom identified as francophone.
  • 2024-2025 intake: approximately 11,500 individuals.
  • 2023-2024 intake: approximately 8,100 individuals.

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 adjustment is expected to be in place by late fall 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.
    • Details (Years of Service: Compensation based on Regular Force/Reserve Force):
      • 5-10 years: $2,000/$400
      • 11-15 years: $3,500/$700
      • 16-20 years: $5,000/$1,000
      • 21+ years: $6,000/$1,200

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 workersand creating a network of childcare coordinators to quickly connect families with local childcare resources.

Cost-of-Living Supports – Housing

• Budget 2024 announceda total investment of $1.4 billion to build 1,400 homes and renovate 2,500 existing units.
• Over the next 20 years, this investment will build and renovate housing on bases and wings nationwide ensuring military families can live close to where they serve. Projects will span key locations such as Esquimalt, Edmonton, Borden, Trenton, Kingston, Petawawa, Ottawa, Valcartier, Halifax, and Gagetown.This includes a new accommodations facility at Canadian Forces Base Borden which provides to up 350 modern sleeping quarters, common lounge areas, study areas, laundry rooms, storage, and office spaces to the recruits who train on base. On January 30, 2025, the former Minister of National Defence Blair opened and toured the new accommodations facility.

OAG Report on CAF Recruitment

• In their fall 2025 report on CAF recruitment, the Auditor General noted:
  • Overall, the CAF did not meet its recruitment and training goals and failed to understand the causes of applicant drop-off during recruitment.
  • The CAF did not have sufficient basic training capacity to meet demand if recruitment targets were met.
  • Planning for new recruits fell short of meeting demand and did not fully account for trained and effective members leaving.
  • Recruitment and training processes are inefficient and fail to leverage modern tools such as electronic forms or automation.
  • Security screening processes involve significant backlog.

Additional Compensation Measures

• Recruitment Allowance for Critical Occupations - Effective April 1, 2026
  • Members will receive $10,000 upon completion of basic training, $20,000 once qualified in trade, and $20,000 upon completion of the first contract, when signing on for another period of service.
• Instructors' Allowance - Effective January 1, 2026
  • All members posted to a designated training school will receive $300/month. Instructors at Canadian Forces Leadership and Recruit School will receive an additional $35/day they instruct up to $12,000/year, while instructors at other establishments will receive an additional $20/day they instruct up to $8,400/year.
• 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/day, and will be received when the member is actually 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/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 Mitigation Measures - Effective April 1, 2026
  • For Regular Force, the current allowance of a month's pay, or ½ month's pay for a single member or Imposed Restriction (IR) move (see below), will be replaced with $13,500 for each of the first three moves, $20,500 for moves 4-6, and $27,000 after that. This applies to single members as well, although those on IR will continue to receive half of the new allowance, given the other IR benefits being provided.
• Imposed Restriction Improvements - Effective first day of third month following approval for members on Imposed Restriction
  • The CAF will improve IR benefits. Specifically, a member will now receive a food allowance of $19.51/day, a transportation allowance of $350/month and an incidentals allowance of $200/month.
• "This is For You" Augmented Reality Experience
  • In June 2025, National Defence launched the "This is For You" Augmented Reality Experience which allows participants to:
    • take flight as part of an air crew delivering supplies to Canadian Forces Station Alert;
    • participate as a soldier providing assistance to Canadian citizens during a natural disaster; or
  • take action as a sailor on HMCS Harry DeWolf, whose crew finds a distressed research vessel.
• The goal of this ambitious project is to capture the imagination of Canadians, especially those who are between 18-34 years old and are potential recruits for the CAF.
• The development and launch of this AR experience is part of the ongoing "This is For You" recruitment campaign that also includes a national advertising campaign, including a series of video ads and new eye-catching decals on the windows of 23 Canadian Forces Recruiting Centres across the country.

OAG Report

Fall 2025 OAG audit on Canadian Armed Forces Recruitment

• The objective was to determine whether the Canadian Armed Forces (CAF) recruits and trains the members it needs to meet operational requirements.
• The audit made six key recommendations:
  1. The Canadian Armed Forces should collect and analyze information from applicants during the recruitment process to identify common reasons for "no further contact" and voluntary withdrawals and adjust recruitment strategies where appropriate.
  2. To support operational readiness, the Canada Armed Forces should implement and monitor actions to address understaffed occupations, particularly those that are in-demand.
  3. The Canadian Armed Forces should take action to ensure sufficient investments in instructors, training infrastructure, and equipment to increase the number of recruits that can be trained and create a more stable, long-term training system and better align the Strategic Intake Plan with long-term personnel needs.
  4. The Canadian Armed Forces should modernize the system supporting recruitment activities by implementing tools and processes that improve data quality integration and usability for recruiters and applicants.
  5. The Canadian Armed Forces should adopt a consistent approach to manage basic and occupational training across the organization.
  6. The Canadian Armed Forces should identify sustainable solutions to ensure security screening process is efficient and timely to meet its needs.

Current Housing Portfolio

• The Department of National Defence's (DND) residential housing portfolio includes 11,737 residential housing units at 27 locations across Canada.
• Approximately 16% of Canadian Armed Forces (CAF) members currently occupy National Defence housing units.

Shelter Charges

• For FY 2025-26, the national average shelter charge is $1,066 per month. The national average shelter charge increase for current occupants was 8.6%, representing approximately $91 per month.
• Annual adjustments are made based on the Statistics Canada Consumer Price Index.
• Where annual shelter charge adjustments result in an increase, they are limited to $100 per month to protect members from sudden and substantial changes. These shelter charge adjustments came into effect on May 1, 2025.

Military Housing Investments

• Investments under Our North, Strong and Free will enable National Defence to construct 824 residential housing units by Fiscal Year (FY) 2029-30 in Gagetown, Halifax, Valcartier, Trenton, Kingston, Petawawa, Borden, Edmonton, and Esquimalt.
  • Spring 2024: Construction began on six net-zero ready buildings in Edmonton (36 units total), the first residential net-zero-emission-ready buildings in the federal government. A $19 million contract was awarded to Bird Construction Group Ltd. Construction is planned to be completed by March 31, 2026.
  • February 2025: Design phase of a Modified Design Build contract awarded to Bird Construction Group Ltd., for $4.8 million. This project is to design 12-unit apartment buildings (200 residential housing units total) in Borden, Kingston, and Petawawa. The construction phase is planned to start in early FY 2026-27.
  • March 2025: Design phase of a Modified Design-Build contract in Esquimalt awarded to Pomerleau Inc., for $2.2 million. This project is to design 244 new units, within several apartment buildings. The construction phase is planned to start in early FY 2026-27.
  • March 2025: Design phase of a Modified Design-Build contract in Gagetown awarded to Pomerleau Inc., for $855,000. This project is to design 12-unit apartment buildings (40 residential housing units total). The construction phase is planned to start in early FY 2026-27.
  • April 2025: Construction of two six-unit apartment buildings in Kingston awarded to DC&F Corp, of Toronto. Construction is planned to be completed in fall FY 2026-27.
  • FY 2025-26: Additional design and construction contracts will be tendered and awarded throughout the year in Edmonton, Borden, Trenton, Valcartier, and Halifax.

Accommodations

• Summer 2024: A contract was awarded to Ellis Don Corporation to begin design work on a new state-of-the-art facility at Canadian Forces Base Esquimalt which will provide modern accommodations for 480 members while on training.

Budget 2024

• Budget 2024 announceda total investment of $1.4 billion to build 1,400 homes and renovate 2,500 existing units.

Dual-Use Pathfinder Initiative

• As part of efforts to build homes on public lands, Budget 2024 announced that the Government is exploring the redevelopment of National Defence properties in Halifax, Toronto, and the Victoria area (i.e. Esquimalt) that could be suitable for both military and civilian uses. These are known as the "Pathfinder Sites".

Prefabricated Construction

• National Defence is exploring the benefits of modular and prefab construction. These benefits may include higher quality construction and faster on-site assembly to speed up the availability of housing units.

2025 OAG Report on CAF Housing

• This audit focused on whether DND managed living accommodations to meet operational requirements and respond to CAF members' needs.
• Key findings:
  • DND did not manage the housing needs of the CAF to meet operational requirements. Quarters are in poor physical condition and many don't offer enough space and modern amenities.
  • The Canadian Forces Housing Agency (CFHA) provides insufficient residential housing units to meet operational and members' needs and does not have up-to-date inspections on 25% of the units.
  • DND has set strategic goals and actions to increase housing supply but has not considered future demand growth for housing to bring CAF beyond the authorized strength of 71,500.

2024 NDDN Report on CAF Housing: Gaps to Fill: Housing and Other Needed Supports for Canadian Armed Forces Members and their Families

• The report was presented to the House on September 23, 2025.
• The committee has requested a Government Response which is due in January 2026.
• The committee issued 25 recommendations urging the government to reverse rent increases, expand and renovate housing, improve contractor oversight, enhance relocation services, and increase collaboration with provinces and municipalities.

Independent External Comprehensive Review (IECR)

• The IECR was presented to the Minister of National Defence by former Supreme Court Justice Louise Arbour in May 2022. It contains 48 recommendations for Department of National Defence (DND) and the Canadian Armed Forces (CAF) to address culture-related issues within the organization.
• To date, 36 of 48 recommendations have been addressed.

Comprehensive Implementation Plan (CIP)

• The CIP establishes a phased approach over five years (2023-2028) for prioritizing and addressing 194 external recommendations from the IECR, Third Independent Review of the National Defence Act (IR3), Advisory Panel on Systemic Racism (APR) and Discrimination, and No. 2 Construction Battalion National Apology Advisory Committee Report.
• 114 of 194 of the recommendations have been addressed.
• 12 recommendations were closed following careful analysis and cross-comparison of overlap between the recommendations from all four reports tracked in the CIP as they will be addressed by other external recommendations or broader initiatives or by leveraging existing processes and structures or legislative changes.

Canadian Military College (CMC) Review Board Report

• On March 7, 2025, the former Minister of National Defence released the first report of the CMC Review Board. The report highlighted the enduring value of the colleges and provided 49 recommendations for systemic reform to address issues of negative culture and misconduct previously identified in the IECR.
• The CMC Review Board is comprised of five external education and culture experts, a Defence public service executive, and a military representative. Board members were chosen for their range of perspectives, background, independence, and impartiality.
• Review Board members consulted and engaged with over 1,500 individuals, including Department of National Defence employees, CAF members, alumni, academic and non-public fund CMC employees, and Canadians. Consultation was a key part of the Review Board's mandate and included visits to allied and partner nations' military academies as well as several visits to both military colleges in Kingston, Ontario, and Saint-Jean, Quebec.

Sixth External Monitor Report (November 2025)

• The report provides an external, independent assessment of the progress made by DND and the CAF in implementing the recommendations made by former Supreme Court Justice Louise Arbour in the IECR.
• In this sixth and final report, Madame Therrien highlighted the genuine effort made by CAF leadership and achievements expected to have an enduring impact, including the repeal of Duty to Report regulations, the introduction of a probationary period for recruits, consideration of unprofessional conduct in promotion and selection processes, and increased supports for affected individuals.
• Madame Therrien also identified structural matters that could impede progress moving forward, such as the need for greater expertise to develop and integrate revisions throughout CAF policy documents, a lack of or dispersal of data across numerous databases, and the complexity of addressing misconduct through overlapping systems of summary hearings and administrative reviews.

Grievance and Complaints System

• The CAF has initiated a review of its grievance and complaints systems with the goal of implementing a complete end-to-end transformation focused on the member's experience and aiming at reducing the time to decision.
• A new digital grievance submission form was introduced on February 5, 2024, for all CAF members, marking a key step in the modernization of complaints and grievance processes.
• In early September 2025, the CAF published a digital version of the Notice of Intent to Grieve form, a form which makes it easier and faster for CAF members to raise concerns to the Chain of Command and seek resolutions at the earliest opportunity. This introduced another step in the modernization of the grievance process and allows members to digitally to submit the form from anywhere, streamlining the process, reduce processing times and providing better access for members.

Extremism and hateful conduct

• Bill C-9 (Combatting Hate Act) was introduced in the House of Commons on September 19, 2025, and seeks to better protect access to places of worship, as well as schools, community centres and other specified places, and to more clearly address and denounce hate-motivated crime.
• Bill C-9 creates a hate crime offence under the Criminal Code or any other Act of Parliament, including the NationalDefence Act, that is motivated by hatred based on certain factors.
• The CAF defines hateful conduct in DAOD 5019-0 as an act or conduct, including the display or communication of words, symbols, or images, by a CAF member that they knew or ought reasonably to have known would constitute, encourage, justify, or promote violence or hatred against a person or persons of an identifiable group, based on prohibited grounds of discrimination under the Canadian Human Rights Act.
• If a military member is found to have engaged in hateful conduct, consequences may include training, monitoring, removed access to materials, investigation and administrative or disciplinary actions.
• The Hateful Conduct Spectrum, which is available to all Defence Team members, identifies improper behaviours like harassment, inappropriate social media use, and affiliations with hate groups, as well as criminal acts like hate crimes, violent extremism, and terrorism.
• It also offers Defence Team members guidance and examples of behaviours on the opposite end of the spectrum, like allyship, anti-racism, and inclusive language, that can help to build a safer and more inclusive workplace.
• The CAF's recruitment and screening processes have been modernized and expanded to assess both eligibility and suitability for service, with specialized recruitment staff trained to recognize extremist symbols, affiliations, and indicators of radicalization.

Canadian Armed Forces (CAF) Arctic Presence

• There are over 300 military personnel in the North and Inuit Nunangat.
• There are approximately 5,500 Canadian Rangers that maintain a meaningful presence in 205 remote and isolated communities, including over 1,500 Rangers in 66 Northern communities and Inuit Nunangat.
• 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.
  • The CAF is planning to expand its Northern and Arctic operations.
  • This expansion anticipates including more CAF personnel and the potential for increased inclusion of forces from Allied nations with an Arctic interest.
  • In addition to the year–round presence stated above, new activities and increased resources aim to support a near year-round military operation pr through Operation NANOOK and other exercises and training to assert Canada's presence and sovereignty as well as refine information-sharing processes.
  • Enabling increased Northern and Arctic operations will allow the CAF to better detect, deter, and defend against threats to Canada and North America.

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.
• $985 million over 20 years to build a new satellite ground station in the Arctic.

Canadian Coast Guard (CCG) Arctic Presence

• CCG Base in Hay River, NT.
• Regional headquarters (HQ) office in Yellowknife, NT.
• Response depots in Yellowknife, NT, and Iqaluit, NU.
• Marine Communications and Traffic Services Centre in Iqaluit, NU, plus 10 remotely controlled radio sites.
• Response (unstaffed) depots in Churchill, MB, and Tuktoyaktuk, NT.
• Arctic Marine Response Station in Rankin Inlet, NU, operating from June to November.
• CCG Auxiliary - Arctic Chapter: 41 units; 533 members; 59 vessels.

Canadian Armed Forces (CAF) Presence in the Arctic

• The CAF's permanent presence in the North is anchored by Joint Task Force North (JTFN) in Yellowknife with detachments in Iqaluit and Whitehorse, along with 440 Transport Squadron, 1 Canadian Ranger Patrol Group Headquarters and a Company of Reserve Infantry.
• The Canadian Army's Arctic Response Company Groups have the ability to 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 also includes:
  • Canadian Forces Station Alert, the northernmost CAF outpost;
  • CAF Arctic Training Centre in Resolute Bay, Nunavut, which provides a permanent location for training and operations in the Arctic; and
  • Assets that support North American Aerospace Defense Command (NORAD) operations, including the North Warning System, three Forward Operating Locations in Yellowknife, Inuvik, and Iqaluit, and one Deployed Operating Base in Goose Bay.
• National Defence supplements its capabilities in the North and Inuit Nunangat through collaboration with intergovernmental and Inuit and Northern First Nation and Metis partners, including through the Inuit-Crown Partnership Committee (ICPC), which meets three times annually, and briefings to northern Premiers and Indigenous leaders.
  • The ICPC has co-developed a work plan with Defence focused on multi-purpose infrastructure and procurement in Inuit Nunangat.
• Canada will further bolster its presence in the Arctic with $2.7 billion over 20 years (cash basis) for Northern Operational Support Hubs. 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 Iqaluit, Inuvik, and Yellowknife as Northern Operational Support Hub locations.
• 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 Royal Canadian Air Force operations.
  • As part of this project, National Defence is maintaining and enhancing CAF infrastructure at Inuvik, Yellowknife, Iqaluit, and 5 Wing Goose Bay. 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.
  • Other projects will upgrade infrastructure in Alert, Rankin Inlet, the North Warning System locations and the Whitehorse Cadet Camp.

Exercises and Operations

• CAF presence and responsiveness in the Arctic is maintained through regular national, bilateral, and multilateral exercises and operations. For example:
  • 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 involving live-fire training, personnel exchanges, integrated drills, and tactical coordination.
  • Operation NANOOK is the CAF's signature Northern operation and takes place each year across Yukon, the Northwest Territories, Nunavut, and Labrador. It involves engaging with Northern and Indigenous partners, territorial emergency planners and other government departments to identify threats to Northern communities and plan for disaster response.

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

• On March 18, 2025, Prime Minister Carney announced Canada's intention to partner with the Government of Australia on advanced A-OTHR technology. Subsequently, in June 2025, Canada and Australia signed a technology partnership to advance collaboration to rapidly develop Canada's A-OTHR capability.

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, as a joint venture between ATCO Frontec Ltd and Inuvialuit Development Corporation (IDC) to design, build, install and operate the P-OTHR research and development data collection system in the Northwest Territories.

Canadian Coast Guard Presence in the Arctic

• The CCG Arctic Region is headquartered in Yellowknife, Northwest Territories, and includes staff bases in Hay River, Northwest Territories, and Iqaluit, Nunavut, including the Marine Communications and Traffic Services Centre in Iqaluit.
• The CCG Arctic Region has grown to more than 100 full-time employees dedicated to program delivery in the Arctic.
• The Canadian Coast Guard Auxiliary (CCGA) in the Arctic has undergone tremendous expansion in recent years. Prior to 2015, the CCGA operated nine community-based units in the Arctic; currently, there are 41 community-based CCGA units with 533 members and 59 vessels. This expansion has strengthened local response capacity.
• The CCG also operates the Arctic Marine Response Station (AMRS) in Rankin Inlet, NU. The AMRS is the primary search and rescue facility in the Arctic, improving maritime safety in Arctic waters. The station operates seasonally from June to November.
• The 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. It will also place equipment caches in 47 communities by the end of FY 2025-26.

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 is also committed to increasing information sharing and joint training opportunities with Arctic and non-Arctic partners, including through the North Atlantic Treaty Organization (NATO).
• The CCG collaborates with other Arctic states on maritime search and rescue and environmental response issues. It has taken a leadership role in the Arctic Coast Guard Forum and Arctic Council's Emergency Prevention, Preparedness and Response Working Group.
• Defence Research and Development Canada is an active participant in the International Cooperative Engagement Program for Polar Research with several Arctic nations to advance our scientific knowledge of the evolving Arctic.
• In July 2024, Canada, the United States and Finland announced an enhanced trilateral partnership called the Icebreaker Collaboration Effort, or ICE Pact, to build best-in-class Arctic and polar icebreakers.

Arctic Infrastructure Fund – Defence perspective

• Announced in Budget 2025, the Arctic Infrastructure Fund, led by Crown-Indigenous Relations and Northern Affairs Canada and the Canadian Northern Economic Development Agency, will invest $1 billion over five years in projects that deliver dual-use capabilities for both military and civilian purposes.
• These investments will advance shared priorities by supporting 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.
• Defence is working closely with other government departments to ensure that infrastructure investments complement mobility, logistics, and situational awareness requirements, reinforcing Canada's sovereignty and security posture in the North.

• Canada-United States Defence Relationship
• The bilateral defence relationship is characterized by extensive military-to-military cooperation, policy dialogue, and high-level strategic engagements. This is done through:
  • Institutions, Organizations, and Agreements, such as the binational North American Aerospace Defense Command (NORAD), the Permanent Joint Board on Defence (PJBD), the Canada-U.S. Test and Evaluation Program (CANUSTEP), and the Military Cooperation Committee (MCC).
  • Personnel Exchanges:
    • Approximately 300 Canadian Armed Forces (CAF) members serve under binational command at NORAD headquarters in the United States.
    • Another 300 Canadian Armed Forces members serve in other areas in the United States.
    • Approximately 50 American military personnel serve at North Bay, Ontario, and Winnipeg, Manitoba, as part of NORAD.
  • Joint Exercises and Operations, such as Exercise ARCTIC FORGE, Exercise GLOBAL RESOLVE, Exercise VITAL ARCHER, and Operation NOBLE DEFENDER. The United States also participates in Operation NANOOK.
  • Cooperation on Cyber, Space, and Emerging Technologies, between National Defence, Canada's Communications Security Establishment, the U.S. Department of War, U.S. Space Force, USSPACECOM, USCYBERCOM, and the U.S. intelligence community.
  • Defence Materiel Relations, underpinned by the Defence Production Sharing Agreement (DPSA) and Title III of the American Defense Production Act, which recognize Canadian businesses as domestic sources in the United States, as well as various other memoranda of understanding covering defence production, capability and component purchasing, logistics, research and development, and testing and evaluation.
  • Multilateral Engagements, including through the North Atlantic Treaty Organization (NATO), Five-Eyes, Global Coalition to Defeat Daesh, Combined Space Operations Initiative, Operation OLYMPIC DEFENDER, the Ukraine Defence Contact Group, and the Partnership for Indo-Pacific Industrial Resilience (PIPIR).

Canada's Strategic Partnerships with Poland, Germany, and Latvia

• From August 25 – 27, 2025, Prime Minister Mark Carney announced that Canada will strengthen our strategic partnerships with Poland, Germany, and Latvia to advance co-operation in key areas, including trade, energy, critical minerals, and collective defence.
  • With Poland: The enhanced partnership will deepen ties across trade, defence, and energy security – investing in key sectors, such as clean energy, including nuclear, critical minerals, defence, aviation, cybersecurity, and advanced technologies.
  • With Germany: A Joint Declaration of Intent was signed to deepen co-operation to secure critical mineral supply chains, increase collaboration on research and development, and co-fund new critical mineral projects that contribute to a range of industries – from electric vehicle manufacturing to defence and aerospace.
  • With Latvia: The enhanced partnership will strengthen the bilateral relationship between Latvia and Canada, and enhance trade, including in the defence sector. He also announced that Operation REASSURANCE will be renewed until 2029.
• Canada will be the Lead Nation of the 2026 International Defence Industry Exhibition in Kielce, Poland, one of Europe's largest defence and security trade shows. Of note, the September 2025 event drew nearly 39,000 visitors, hosting over 800 companies from 35 countries.

European Union (EU) Defence Production Partnership

• 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 is the intentional first step toward Canada's participation in Security Action for Europe (SAFE), an instrument of the ReArm Europe Plan/Readiness 2030.
• SAFE includes a number of initiatives of interest to Canada. For example, SAFE enables the EU to provide €150 billion in loans to Member States for defence investments, increasing the funds available to EU Member States, which could in turn increase their demand for Canadian defence products. SAFE also promotes joint procurement and defence purchases between EU Member States and countries with an SDP with the EU.
• Canada aims to participate in the ReArm Europe Plan/Readiness 2030 through its SDP with the EU and to expand reciprocal and 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.
• Global Affairs Canada is currently negotiating a bilateral agreement with the EU, which aims to allow greater access for Canadian companies to the European market. The Council of the EU approved the opening of negotiations for Canadian participation in the SAFE defence loan instrument on September 18, 2025.

Budget 2025

• Budget 2025 proposes to provide $2.7 billion over three years on a cash basis, starting in 2026-27, to the Department of National Defence in support of the renewal of Operation REASSURANCE. Operation REASSURANCE will remain the CAF's largest overseas mission.

Operation REASSURANCE

• Under Operation REASSURANCE, the Canadian Armed Forces (CAF) has deployed:
  • A Maritime Task Force, which contributes ships to the Standing North Atlantic Treaty Organization (NATO) Maritime Groups;
  • An Air Task Force, providing logistical support out of Prestwick, United Kingdom;
  • A Tactical Aviation Detachment in Latvia composed of episodically deployed Chinook and persistently deployed Griffon helicopters, providing aviation support to NATO forces in the Baltics; and
  • A Land Task Force, including contributions to and leadership for NATO Multinational Brigade Latvia.
  • A Cyber Task Force has deployed a cyber operator to conduct Joint Threat Hunt operations alongside Latvia's Cyber Emergency Response Team (CERT-LV). This initiative aims to bolster the defence of Latvian critical infrastructure against cyber threats.
• Canada intends to complete the full implementation of persistently deployed Brigade capabilities to Latvia by 2026, at which point the Brigade will have up to 2,200 CAF members as part of NATO's Forward Land Forces and supporting elements in Latvia.
• With support from the Communications Security Establishment, the CAF also provides direct cyber defence support to Latvia's national Computer Emergency Response Team as well as to the NATO Multinational Brigade.
• In August 2025, Canada extended Operation REASSURANCE for another three years until March 2029.

Multinational Brigade Latvia

• The Multinational Brigade Latvia was established in July 2024.
• In October 2024, the Multinational Battle Group was integrated into NATO Multinational Brigade Latvia.
• The Brigade is currently composed of 14 contributing nations: Albania, Canada, Czechia, Denmark, Iceland, Italy, Montenegro, North Macedonia, Poland, Slovakia, Slovenia, Spain, Sweden, and Latvia.
• As the Framework Nation, Canada is responsible for coordinating with Latvia and the contributing nations to help set the structure, pace, training and combat effectiveness of the Brigade.
• Canada is one of eight Framework Nations leading NATO's Forward Land Forces to protect NATO's Eastern Flank.

Exercise RESOLUTE WARRIOR

• The second annual exercise was conducted across Central and Northern Latvia from November 1 to 10, 2025, and reinforced the Alliance's ability to defend its territory and deter aggression through its enhanced presence and coordinated training.
• This large-scale field exercise continues to provide an opportunity for the Brigade to train its operational capabilities and validate force readiness.

Air Task Force – Prestwick, United Kingdom

• Since March 2022, the CAF has provided tactical airlift aircraft and support personnel out of Prestwick, United Kingdom to move vital, time-sensitive military aid donations from Allies and partners in Europe.
• As of September 2025, the Air Task Force delivered around 30 million pounds of military aid from Canada, NATO Allies, and partners in support of Ukraine.

Tactical Aviation Detachment in Latvia

• Since August 2024, the CAF has provided aviation support to NATO Multinational Brigade Latvia with an Air Detachment of 4x CH-146 Griffon helicopters.
• In July 2025, the CAF stood up a Tactical Aviation Detachment in Latvia, which consisted of 2x CH-147 Chinook heavy-lift, multi-mission helicopters, in addition to the 4 x CH-146 Griffons. The Chinooks provided increased troop transport and cargo delivery capabilities. The Battalion HQ and the Chinooks returned to Canada in mid-September but remain at elevated readiness, earmarked for deployment to Latvia should the situation require it.

Maritime Task Force

• Since 2014, the Canadian Armed Forces (CAF) has deployed a warship on a persistent, rotational basis for exercises and operational tasks in the NATO Maritime Command's areas of responsibility.
• HMC Ships Edmonton and Yellowknife deployed from July until early October 2025 to Standing NATO Mine Countermeasures Group 1, identifying and disposing of sea mines in European waters from prior conflicts while also providing NATO with a maritime patrol capability.
• HMCS St. John's was deployed with Standing NATO Maritime Group Two (SNMG2) until November 2025 and has recently transferred to Standing NATO Maritime Group One (SNMG1), where it will remain until December 2025. Last year, from July to December, HMCS Charlottetown commanded SNMG2, one of NATO's standing maritime immediate reaction forces.
• Periodically through 2025, from April through October, the CAF sent personnel to assist in the Black Sea Mine Countermeasure activity based out of Romania, identifying and disposing of sea mines that have drifted westward from Ukraine to the shores of NATO nations.

Spike LR2 Missile Malfunction

• In December 2023, National Defence finalized the procurement of Portable Anti-Armour Missile Systems from Rafael Advanced Defence Systems. These modern anti-tank weapons aim to improve the self-protection of military members deployed in Eastern Europe.
• In the interest of obtaining the shortest timeline from Request for Proposal to delivery to Latvia, no live-fire tests or demonstrations were planned or performed during the selection process for the Portable Anti-X Missile System's Urgent Operational Requirement.
• This technical risk was deemed acceptable as Rafael Advanced Defence Systems had already delivered thousands of units of this product to Canadian Allies.
• During Initial Cadre Training in mid-July 2024, issues with the functionality of the missiles and launchers were identified by project staff.
• Following consultation with Rafael Advanced Defence Systems, additional trials were conducted in March 2025. The rescheduled demonstration range proved successful, the functionality issue was resolved, and the acquisition is moving forward.
• Training for operators and technicians took place in early September 2025, following the delivery of the missiles to Latvia.

Russian Incursions in NATO Airspace

• On September 9-10, 2025, several Russian drones crossed into Polish airspace. NATO aircraft were scrambled and shot down some of these drones. In response to these airspace violations, Poland requested consultations with NATO Allies under Article 4 of the Washington Treaty.
• NATO launched an enhanced vigilance activity, EASTERN SENTRY, to strengthen NATO's air and missile defence posture along its eastern flank. Some NATO Allies, such as Denmark, France, Germany, and the UK, have pledged to deploy additional fighter aircraft, anti-air warfare frigates and other air and missile defence capabilities for EASTERN SENTRY.
• Additional violations took place throughout the fall, including an incident on September 19, 2025, in which three Russian fighter jets violated Estonian airspace over the Gulf of Finland. Italian F-35 fighters attached to NATO's air defence support mission in the Baltic states were scrambled to intercept the jets.

Balancing Readiness in Latvia and Pre-Deployment Training in Canada

• The CAF has revamped its approach for the generation and management of readiness, reinforcing it as a central business process in Defence.
• Training and exercises are key to building our readiness for specific missions and to operate as a joint force alongside our Allies and partners. International exercises act as important deterrence instruments, demonstrating capabilities, cooperation, and resolve.
• Given the strategic priority of the Latvia deployment, the Canadian Army concentrates the majority of available vehicle replacement parts and consumables s on Multinational Brigade Latvia. Deployed needs must be balanced against training and force generation needs in Canada, which periodically leads to shortages in theatre.

New Capabilities:

Switchblade Loitering Munitions System

• In February 2025, Canada announced that it was acquiring the Switchblade Loitering Munitions (LM) System as part of Operation REASSURANCE. Canada identified this system as an Urgent Operational Requirement (UOR) to support members deployed in Eastern Europe.
• The LM capability will provide CAF members with land-based precision-fires weapon systems able to reliably locate, track, and neutralize adversary targets beyond visual line of sight to a range of 40km.
• National Defence will acquire LM capabilities through two phases:
  • Phase 1 will acquire dismounted (soldier portable) LM systems; and
  • Phase 2 will integrate LM systems on existing armoured vehicles.
• Anticipated deliveries for Phase 1 are winter 2026 and late 2026/early 2027 for Phase 2.

Counter Uncrewed Aircraft System

• The Counter Uncrewed Aircraft System (CUAS) Project will acquire a new CUAS to detect, track, identify, and defeat NATO Class 1 Unmanned Aerial Systems as well as Loitering Munitions for forces deployed on Operation REASSURANCE.
• CUAS systems will include a dismounted and Fixed Site Systems (Phase 1) as well as an integrated CUAS vehicle (Phase 2).
  • Phase 1 delivery began and was completed in April 2025, and training was completed by the end of May 2025.
  • The Government of Canada has awarded the contract to CACI International, Inc. for the Integrated CUAS Vehicle (ICV) as part of Phase 2 of the CUAS project.

Air Defence Capabilities

• This project will provide the CAF with the capability to defeat rotary and fixed wing aircraft as well as some Unmanned Aerial Systems in support of Operation REASSURANCE.
• This project will procure 16 launchers, 286 missiles, and 16 vehicles along with the associated logistics support.
• The majority of the training is complete and deployment to Latvia has already begun.

Light Tactical Vehicles (LTVs)

• In July 2024, the Minister of National Defence announced an investment by Canada of $35.8 million to deliver 90 LTVs to Canadian Army personnel deployed in Latvia, supporting Operation REASSURANCE.
• Delivery of 28 LTVs to Latvia was completed in fall 2024 as part of the first phase of the Light Forces Enhancement (LFE) Project. An additional 72 vehicles are expected to be delivered by January 2026 and will be shipped to Latvia in spring 2026.
• Through the LFE project, the CAF's Light Forces are acquiring new off-road vehicle capability.

Operation UNIFIER

• Op UNIFIER is the military training, professionalization, and capacity building mission of the Canadian Armed Forces (CAF) in support of Ukraine.
• It was launched in 2015 at the request of the Ukrainian government.

Current Training Missions

• Engineer Training Element
  • The CAF provides training on a range of basic and advanced combat engineering skills. This includes instruction on locating, identifying, and neutralizing enemy explosives as well as breaching enemy obstacles to enable the movement of friendly forces.
• Combat Medic Training
  • CAF members participate in the medical training program for the Armed Forces of Ukraine (AFU), focusing on advanced tactical medical skills and combat survivability that have saved Ukrainian lives on the battlefield.
• Junior Officer Leadership Development Training
  • The CAF participates in a joint leadership program and is training AFU combat leaders. This training instructs Ukrainian junior officers on battlefield responsibilities, planning and orders processes, maneuver coordination, intelligence and reconnaissance, and planning and execution.

Coordinated Efforts with Allies

• Canada continues to make key contributions towards collective Allied efforts in support of Ukraine.
• Canada is the third-largest troop contributor to the NATO Security Assistance and Training for Ukraine (NSATU) command, which coordinates the provision of military training, equipment, and logistical support to Ukraine.
• Canada contributes several key leadership positions under this organization. Notably, a Canadian Army Brigadier-General occupies the post of Deputy Commanding General – Training.
• In early 2025, Canada contributed $41 million in bridge funding to NSATU, accounting for more than half of its immediate funding needs at the time, to ensure the organization's effective establishment and operation as a coordinating body for Allies and partners to continue to support Ukraine.
• In March 2025, France and the United Kingdom announced they would lead a Coalition of the Willing to coordinate discussions for a potential multi-national reassurance force to support Ukraine in a just and lasting peace.

Capacity Building

• Operation UNIFIER also encompasses support for Ukraine's various reform objectives – including capacity building and strategic advice to strengthen defence institutions – to improve the governance and accountability of the Ministry of Defence of Ukraine (MoD), the Armed Forces of Ukraine (AFU), and constituent defence forces.
• Since 2023, the Military Training Cooperation Program (MTCP) has managed an annual funding envelope of $8 million in contributions for Defence Institution Building and Defence Capacity Building initiatives in support of Ukraine.

Cyber Defence Support

• Since the beginning of the conflict, at the request of the Ukrainian Ministry of Defence, the Canadian Armed Forces and the Communications Security Establishment have been bolstering Ukraine's cyber defence capabilities.
• This support includes the provision of cyber defence expertise, cyber threat intelligence, training, software tools, IT hardware, and engineering solutions.

Bilateral Agreement on Security Cooperation with Ukraine

• On February 24, 2024, Canada and Ukraine signed an Agreement on Security Cooperation.
• This strategic security partnership formalizes Canada's long-term support to Ukraine as it defends its sovereignty and territorial integrity, rebuilds its economy, protects its citizens, and pursues its integration into the Euro-Atlantic community.
• The Agreement is valid for 10 years and sets out key areas of current and future cooperation and support. The Agreement serves to match Canadian capabilities with Ukrainian needs and focuses on Canada's own strengths and areas of interest, including in demining; countering disinformation; and Women, Peace and Security, in addition to military assistance.
• During his August 2025 visit to Ukraine, Prime Minister Carney signed the Action Plan to implement the Agreement.

• Since February 2022, Canada has committed over $6.5 billion in military assistance to Ukraine.
• On August 24, 2025, on the 34th anniversary of Ukraine's independence, Prime Minister Carney announced that the $2 billion earmarked for military assistance to Ukraine this fiscal year was fully allocated, including:
  • $835 million to procure critical capabilities, including armoured vehicles, medical equipment, spare parts, small arms, ammunition, explosives, and drone capabilities.
  • Approximately $680 million (USD 500 million) to purchase a package of U.S. capabilities under the Prioritised Ukraine Requirements List (PURL) Initiative, including ammunition and air defence capabilities.
  • $220 million to purchase drone, counter-drone and electronic warfare capabilities, including investments in joint ventures between Ukrainian and Canadian industry.
  • $165 million to support Canada's work in Ukraine Defense Contact Group Capability Coalitions; and
  • $100 million to source ammunition through the Czech Ammunition Initiative.
• On October 15, 2025, during the 31st Ukraine Defense Contact Group meeting, the Minister of National Defence (MND) announced new Canadian contributions to strengthen Ukraine's defence, which included:
  • Contributing an additional $12 million to the Drone Capability Coalition's Common Fund to bolster Ukraine's drone capabilities;
  • Providing $30 million in winter gear for the Armed Forces of Ukraine, with deliveries already underway; and
  • Donating surplus CAF equipment, including AIM-7 missile components, LAU-7A rocket launchers, and M113 vehicles and parts.
• In November 2025, MND announced additional allocations in support of Ukraine's defence, including $100 million for small arms and ammunition and $25 million for critical medical equipment.
• Through Budget 2025, the Government of Canada is committing $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.
• Of the 89 Armoured Combat Support Vehicles committed to Ukraine, 49 were delivered between fall 2022 and fall 2024, and the remaining vehicles are currently being delivered with the final vehicle scheduled to arrive before the end of 2025.

Ukraine Defense Contact Group (UDCG):

• Co-chaired by the United Kingdom and Germany, the UDGC brings together over 50 countries, providing a mechanism for identifying Ukraine's critical equipment needs; enabling Allies and partners to facilitate donation assistance to Ukraine; and building the long-term capabilities of the Armed Forces of Ukraine (AFU).
• Canada is an active member in the Air Force, Armour, Drone and Information Technology UDCG Capability Coalitions.

Air Force Capability Coalition (AFCC)

• Canada joined the Air Force Coalition due to its niche capabilities in pilot training English language training. Canada announced an investment of $389 million over five years to support F-16 pilot training for Ukrainian personnel from 2024 to 2029.

Armour Capability Coalition (ACC)

• Canada joined the Armour Capability Coalition due to its industry expertise and previous donations to Ukraine, including 39 armoured combat support vehicles (ACSVs). An additional 50 vehicles were committed to Ukraine with final delivery by the end of 2025. Canada also committed a total of $50 million to support Poland's Leopard Maintenance and Repair Centre, which is instrumental in maintaining Ukraine's fleet of Leopard 2A4 main battle tanks.

Drone Capability Coalition (DCC)

• Canada joined the Drone Capability Coalition to coordinate and deliver drone capabilities to Ukraine, leverage opportunities for knowledge exchange with the AFU, and explore potential partnerships with Ukrainian industry. The Drone Coalition is comprised of four Working Groups. Canada co-leads the Joint Venture Working Group (JVWG) with Latvia, where we are working to coordinate opportunities for partnership between Canadian and other DCC nations' companies with Ukrainian industry.

Information Technology Capability Coalition (ITCC)

• Canada joined the IT Capability Coalition to further advance our support to Ukrainian resilience in areas such as digital modernization, IT infrastructure, communications, and cyber security. Canada leads the Cyber Security Working Group and contributes $2 million to the IT Coalition's Common Fund to advance Ukraine's cyber capabilities. Canada has committed an additional $6 million to advance efforts under the ITCC this Fiscal Year (FY2025/26).

Latest Projects/Announcements

$100 million in small arms and ammunition

• Canada has invested $100 million over two years to deliver small arms and ammunition—including 5.56mm and 7.62mm rounds, blank training rounds, and M4 Carbines (CAF C7/C8 equivalent) from Colt Canada, a leading Canadian industry partner. This initiative addresses Ukraine's urgent need for ammunition and supports its transition to NATO-standard weapons. These efforts build on Canada's previous contribution of $172 million in small arms and ammunition since 2022.

$25 million in critical medical equipment.

• Canada is providing $25 million worth of critical medical supplies—including REBOA, combat medical kits and consumables. These resources will strengthen Ukraine's ability to deliver advanced care in combat zones, addressing increasingly complex and urgent frontline medical needs. These donations are built on previous donations of combat medical bags, training kits, and will also support CAF medical training under Operation UNIFIER.

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. In support of the Government of Canada's Indo-Pacific Strategy, the Canadian Armed Forces (CAF) are increasing military activities and maintaining a significant presence in the Indo-Pacific through this operation.

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 2025 and into 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 million is allocated to increase CAF participation in bilateral and multilateral exercises with regional allies and partners.

Augmented Analytical Capacity

• Increased analytic capacity on the Indo-Pacific region through the creation of new strategic analyst positions, internal collaborations and external partnerships is ongoing.

Current and Upcoming Engagements in the Region

• HMCS Max Bernays is currently returning from deployment on Operation HORIZON, where the ship and crew:
  • participated in multinational exercises, including SAMA SAMA in the Philippines and ANNUALEX in Japan;
  • 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.
• In 2026, the CAF will maintain forward presence operations through naval deployments and other CAF capabilities to advance defence and foreign policy objectives.

Status of Visiting Forces Agreement (SOVFA)

In November 2025, Canada and the Philippines signed a Status of Visiting Forces Agreement, strengthening the bilateral defence relationship and once ratified, will open the door to further activities and exercises.

Participation in Exercises and Activities

• Through 2025 to date, the CAF has 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 (U.S. and partner nations)
  • SUPER GARUDA SHIELD (Indonesia)
• On November 10, 2025, 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.
• 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 Op HORIZON, making it a significant opportunity to improve interoperability with important regional partners.
• In support of Operation HORIZON, the CAF regularly conducts transits through the Taiwan Strait to reinforce international law, including navigation and overflight rights, and the principles of a free, open, and secure Indo-Pacific.
• Further, under the same principles, the CAF also conducts regular Multinational 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.

Cyber Cooperation in the Region

• 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 December 2024, CAFCYBERCOM supported its first Military Cyber Operations and Capabilities Course in Malaysia, sponsored by the Military Training and Cooperation Program.

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 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

• Budget 2025 proposes to provide $300.1 million over three years on a cash basis, starting in 2025-26, to the Department of National Defence (DND) and the Communications Security Establishment to support Operation AMARNA.
• This will be partly offset by $155.8 million over three years of existing DND resources.

Operation AMARNA

• As of April 1, 2025, Operation AMARNA replaced Operations ARTEMIS and IMPACT as part of Canada's contribution to strengthening peace and security in the Middle East.
  • Up to 70 CAF members will be deployed on a persistent basis.
  • An additional capacity of up to 500 personnel will be available for episodic joint and combined exercises and security cooperation activities, enhancing the CAF's ability to respond to emergencies and crises in the region.
  • The CAF will conduct exercises and defence diplomacy activities with regional partners, continue to support the North Atlantic Treaty Organization (NATO) Mission Iraq, continue to perform capacity building in Jordan and Lebanon, and continue to support the 47-nation Combined Maritime Forces.

Government of Canada Support to Palestine and Israel

• On August 4, 2025, the Canadian Armed Forces (CAF) delivered additional life-saving humanitarian assistance to Gaza to respond to the pressing humanitarian needs of Palestinians.
• The CAF employed a CC-130J Hercules aircraft to conduct an airdrop of critical humanitarian aid in support of Global Affairs Canada into the Gaza Strip. The air drop consisted of 21,600 pounds (10,000 kilograms) of aid.
• On July 29, 2025, Foreign Affairs Minister Anita Anand announced new funding of $30 million to help address the humanitarian needs of Palestinians in Gaza and the West Bank.
• The $30 million in humanitarian assistance will be focused on:
  • Support to logistical operations along the Jordanian Corridor;
  • Support to experienced UN and Red Cross partners to scale up the delivery of assistance into Gaza; and
• Input of Canadian-funded humanitarian supplies into the pipelines into Gaza, including support to the Government of Jordan's efforts.
• With the additional resources announced on July 29, 2025, Canada has committed more than $355 million in international assistance to respond to the humanitarian and resilience needs of Palestinian civilians since the conflict began on October 7, 2023.
• On October 17, 2025, the Canadian Armed Forces deployed a liaison officer to the Civil-Military Coordination Center (CMCC) in Kiryat Gat, Israel, to support international coordination efforts on implementation of the comprehensive Middle East peace process.

• The CAF remains involved in legacy United Nations, NATO, and Multinational Forces and Observers (MFO) contributions in the area (Operations JADE, PROTEUS, FOUNDATION, and CALUMET) and other operations depending on necessity (Operations GLOBE and PRESENCE).
• The approximate number of CAF personnel posted to Middle East operations as of October 8, 2025, can be found in the table below.

Canadian Patrol Submarine Project (CPSP)

• On July 10, 2024, Canada announced it will purchase up to 12 conventionally powered, under-ice capable submarines.
• A Request for Information was released on September 14, 2024 enabling industry engagement in the acquisition process
• On August 26, 2025, the Government of Canada announced that it had identified German company TKMS (previously known as Thyssenkrupp Marine Systems) and Republic of Korea company Hanwha Ocean Co., Ltd. as the two Qualified Suppliers (QS) for the CPSP. This decision was informed by a thorough assessment of Canada's requirements for the CPSP, including construction and delivery timelines for the new submarine fleet.
• In October 2025, Qualified Suppliers received guidelines and Instructions to enable the submission of formal proposals in Spring 2026.
• The Government of Canada will determine a preferred strategy for the acquisition, such as a contract with one of the shortlisted qualified suppliers or a strategic government-to-government partnership.
• Canada also engaged with other governments and militaries to exchange lessons learned and to gain insights into their respective submarine acquisitions, infrastructure and sustainment programs.
• The identification of qualified suppliers is a critical milestone for the CPSP.
• At present, build times for new off-the-shelf submarines have been assessed as 7 years via engagements with diesel-electric submarine manufacturers.
• Delivery of the first Canadian Patrol Submarine is required no later than 2035.
• As part of the next steps, Canada is presently conducting in-depth engagements with the two qualified suppliers to continue to advance the procurement process.

Victoria-class Modernization (VCM)

• Improvements to HMCS Victoria, HMCS Windsor and HMCS Corner Brook are ongoing and are expected to be completed in the early 2030s.
• The VCM project is currently made up of 12 separate projects. Eight are in the Implementation Phase and four are in the Definition Phase.
• Budget: The VCM is valued at up to $1 billion.

Canadian Patrol Submarine Project (CPSP)

• The CPSP was established in 2021 to inform timely governmental decision-making about a potential replacement class of submarines and avoid any gap in capabilities.
• The key submarine capability requirements will be stealth, lethality, persistence and Arctic capabilities, meaning that the capability will have extended range and endurance.

Victoria-class Modernization (VCM)

• The first three Victoria-class submarines were accepted into service between 2000 and 2003. The fourth submarine suffered a fire in transit to Canada, which delayed its acceptance into Royal Canadian Navy service until 2015. The VCM project will focus primarily on enhancing three 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 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, including by making them less likely to be detected and by increasing their ability to conduct intelligence, surveillance and reconnaissance missions; and
  • Survivability – to ensure the survivability of the Victoria-class submarines against an evolving complex threat in an ever-changing battle space.
    • Joint Force Capability and Survivability improvements are also expected to be completed on HMCS Windsor during its ongoing Extended Docking Work Period.
    • HMCS Corner Brook and HMCS Victoria will have these changes implemented during their mid-cycle Docking Work Periods which are both scheduled to start in the early-2030s.
• A $4.9 million contract for the design, acquisition and fabrication elements of the Galley Improvement Project was awarded to COTA Aviation Ltd in December 2023. It is an Indigenous company based in Parksville, British Columbia.
• Other components of the VCM project may be sourced from Canadian companies.
• Contracts will be awarded through an open, fair, and transparent procurement process, and all eligible bidders will be invited to participate.
• The VCM project will also ensure there is no gap in submarine capability until the new fleet of submarines are operationally available.

Victoria In Service Support Contract

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

Procurement through Strategic Partnership

• On September 19, 2025, Vice-Admiral Angus Topshee, Commander of the Royal Canadian Navy, was quoted in the Globe and Mail that the Government of Canada is considering the option of purchasing submarines through a "strategic partnership" with foreign governments.
• It was noted that such an approach could yield benefits for Canada including an accelerated delivery of the submarines, as well as the possibility for more Canadian input into the construction of the submarines.

Light Armoured Vehicle Reconnaissance Surveillance System (LRSS)

• The project's aim was to deliver 66 Light Armoured Vehicle 6.0 reconnaissance platforms equipped with advanced surveillance systems.
• The acquisition cost for this project, including project management, infrastructure, contracts, and contingency, was $623.4 million.
• Capabilities:
  • On-the-move long-range detection and identification.
  • Advanced surveillance systems integrated into the LAV 6.0 platform.
• Project Milestones:
  • Preliminary approval: 2012
  • Project approval: 2014

Light Armoured Vehicle Reconnaissance Surveillance System (LRSS) Project

• The LRSS project was launched in 2012 when the Government of Canada approved the replacement of the aging Coyote reconnaissance vehicles.
• The project was formally approved in 2014 to deliver 66 LAV 6.0 platforms equipped with advanced surveillance systems.
• These vehicles were to allow soldiers to detect, recognize, and identify targets at long range while on the move, significantly improving situational awareness and operational effectiveness.
• The LRSS fleet integrates digital sensors and surveillance technology into a highly mobile and protected platform, enabling operations in complex environments.
• The total project cost was approximately $623.4 million, which includes acquisition, project management, infrastructure, contracts, and contingency.
• Reliability, Availability, Maintainability and Durability (RAMD) testing occurred between November 2023 and April 2024, and again between March 2025 and May 2025, and demonstrated serious technical problems.
• Due to the technical challenges experienced in meeting the Canadian Army's requirements for LRSS and due to changes in the rapidly evolving tactical and technological spaces, the Canadian Army determined that the LRSS solution no longer filled its capability gap.
• In September 2025, Canada and GDLS-C mutually agreed to end the LRSS contract. As part of the cancellation agreement:
  • The Government of Canada would descope the contracts to include only the work already completed and paid for by Canada up to the stop work date.
  • The Department of National Defence would return the nine vehicles and LRSS specific parts received, thereby transferring ownership of these and any partially produced vehicles back to GDLS-C.
  • In return for giving full ownership of the vehicles and parts back to GDLS-C, a "Consideration In Kind" is being explored, though details are not yet available.
  • The remaining funds for the project would be returned to the Capital Investment Fund.

Foreign Military Sale (FMS) Program - High Mobility Artillery Rocket System (HIMARS)

• The HIMARS, Multiple Launch Rocket System Family of Munitions (MFOM), and associated fire control are produced by Lockheed Martin Missiles and Fire Control. They are not commercially available, and only available through the United States FMS program.
• The proposed sale includes 26 HIMARS launchers, various long-range missiles and training rockets, initial spares, training, and support services.
• Potential Cost: Up to $1.75 billion USD.

Timeline

• A Letter of Request was submitted in December 2024 to the U.S. Government to request acquisition under the FMS program.
• On October 1 2025, the U.S. Department of State approved the potential sale to Canada. Once Canada receives a U.S. Letter of Offer and Acceptance, it will be reviewed and a decision based on its contents will be made in the coming months.
• If the sale moves forward, the initial operating capability is scheduled for 2030 with full operating capability by 2034.

Long-Range Precision Strike (Land) (LRPS(L)) Project

• A long-range missile capability was identified as a priority in Canada's 2024 Defence Policy, Our North, Strong and Free (ONSAF) and in the Canadian Army's modernization strategy, Inflection Point 2025.
• The LRPS(L) project 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, an increase from the current 30 kilometers range; revolutionizing the way the Canadian Army conducts strike operations.

National Defence Real Property Portfolio Overview

• 2.2 million hectares of land
• 19,000 buildings, 20,000 works (electrical water), 5,500 kilometres of roads
• Average age of assets is 39 years old

Our North, Strong and Free (ONSAF)

• ONSAF commits to investing $10.2 billion over 20 years in current and new infrastructure to support the required tempo of training, operations and day-to-day military activities.
• These investments will range from asset maintenance and repair to minor and major recapitalization and renewal of military facilities, including but not limited to retrofit and replacement of firehalls, living accommodations, and health services centres.

Examples of Major Recent Defence Infrastructure Projects

• Canadian Forces Base (CFB) Halifax: Continue design and construction of the $191 million Combatant Training and Integration Centre at CFB Halifax. Once complete, this facility will house cutting-edge training systems to train personnel for future River-class Destroyer operations.
• Defence Research and Development Canada Suffield: Initiating the design of the combined Modernize Chemical and Biological Facilities and Neurobehavioral Blast Research Facility projects for a value of $761 million. This project aims to deliver a state-of-the-art facility to support ongoing and future research activities to directly support the CAF's ability to respond to Chemical and Biological threats and improve blast protection and blast treatment for personnel.
• CFB Esquimalt: The ongoing $1.1 billion A/B Jetty Recapitalization Project at CFB Esquimalt's Dockyard in BC to support new fleets built through the National Shipbuilding Strategy. Work in 2025/26 includes the completion of "B" Jetty and the start of construction of "A" Jetty.
• CFB Gagetown: Completion of the new $90 million facility for the 4 Engineering Support Regiment, the Canadian Army's High Readiness Engineer Unit. This modern 20,000m2 facility enables the unit to continue to meet the demands of domestic and expeditionary crisis response.
• The Digital Services Group (DSG) is collaborating closely with Shared Services Canada to ensure National Defence's infrastructure is supported through the Network Modernization Project. Additionally, DSG is enhancing WiFi solutions to support Defence Team members on bases and wings.

• Much of the existing Real Property (RP) portfolio was not designed for today's operational needs. In addition, a significant proportion of the assets are at the end of their life cycle and are forecasted to be in "critical" condition by 2030.
• The condition of the National Defence portfolio is aligned with the overall Government of Canada RP portfolio; the average age of assets is increasing, overall portfolio condition is deteriorating, deferred maintenance costs are growing, and the functionality and suitability of the portfolio are declining.
• In order to address these issues, National Defence is investing $8.8 billion over 5 years (starting in 2025-26) to address the backlog of deferred maintenance, including recapitalization of linear assets and municipal works to improve the resiliency and sustainability of the real property portfolio across bases and wings.
• Additionally, due to climate change, 64% of National Defence assets are at a high or greater risk of failure by the 2050s.
• Through portfolio modernization, National Defence is increasing the energy efficiency of defence infrastructure, reducing greenhouse gas (GHG) emissions, and providing modern net-zero or net-zero ready facilities to support personnel.
  • As of 2023-24, Defence had reduced GHG emissions from its real property and conventional fleet by about 38% from 2005 levels, nearing the 40% GHG emission reduction target for real property and conventional fleet by 2024/2025.
  • By 2030, DND's goal is to eliminate fossil fuel use in government-owned buildings, cut emissions, and lower energy costs. We are investing in diverse low-carbon projects and expanding the use of Energy Performance products to deliver cost- effective upgrades with guaranteed energy savings.
  • To ensure our accountability, all new infrastructure projects will include energy performance targets in their design, and procurement will prioritize low-carbon materials and sustainable products, including building materials to vehicle fleets.
  • Throughout this process, we remain committed to implementing Government of Canada environmental obligations and regularly engaging Northern and Indigenous partners, as we work to address the security impacts of climate change.
• For 2025-26, National Defence is allocating over $370 million to minor capital projects for existing infrastructure. In addition to buildings and facilities, this includes $31 million for municipal works projects, such as roads and utilities.
• In support of the Defence Real Property Portfolio Strategy, the Infrastructure Maintenance and Renewal Programis aimed at stabilizing the aging and deteriorating Defence RP portfolio, addressing maintenance requirements, and prioritizing long-term recapitalization investments. Taken together, the Program will:
  • Modernize infrastructure management;
  • Contribute to reducing GHG emissions by 40% by 2025 and setting National Defence on a path to meeting the net zero carbon target by 2050;
  • Support Indigenous reconciliation initiatives; and
  • Provide a resilient and sustainable RP portfolio in support of future operations.

Daycare Closure at CFB Gagetown

• On November 18, 2025, a rodent infestation at the Military Family Resource Centre (MFRC) daycare at CFB Gagetown led to the Province of New Brunswick suspending the daycare's operating licence for approximately 14 days. Daycare workers also walked off the job in response to the issue.
• The Base arranged for pest control and deep cleaning services to address the situation and will work with the proper authorities to recertify the daycare's operating licence.
• On November 18, social media posts by New Brunswick MFRC publicly acknowledge the rodent problem and indicate a target date of December 8 to reopen the daycare.
• On November 27, further social media posts indicated the facility underwent pest control which was still ongoing. It stated the facility is undergoing a deep cleaning which includes the HVAC system. Weather stripping on doors and windows had also been replaced during the closure.

Indigenous Reconciliation Program (IRP)

• In Budget 2022, National Defence was allocated $6 million over four years, beginning in 2023-24, to establish the IRP. This funding is aligned with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and promotes early collaboration with Indigenous communities.
• Efforts are ongoing to renew the IRP to ensure continuity amid significant upcoming Defence investments and related Indigenous engagement needs.
• Through the Innovation Research Program (IRP), organizations have access to a range of funding opportunities designed to foster collaboration and advance policy development. This includes
  • Engagement and Collaboration grants that support partnerships and dialogue, as well as
  • Research Support Contributions to drive evidence-based solutions and
• In fiscal year 2024-25, the IRP funded 25 First Nations, Inuit, and Métis organizations.
• The call for applications for fiscal year 2025-26 is open and as of November 2025, the IRP has funded 19 recipients, including:
  • The OneHoop National Indigenous Defence Conference which aims to advance Indigenous reconciliation in Defence. The second annual Conference will take place in Ottawa in February 2026; and
  • The Council for the Advancement of Native Development Officers (CANDO), which will initiate The Indigenous Defence Supply Chain Pilot. This ongoing effort will focus on building Indigenous capacity to participate in Defence procurement.
• Maritime Forces Pacific and Canadian Forces Base (CFB) Esquimalt continues engagement and joint dialogue with T'Sou-ke Nation on marine activity, miliary operations and environmental concerns.

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 leaders of Inuit treaty partner organizations in Iqaluit, announced that Inuvik, Yellowknife, and Iqaluit have been selected as locations for the Northern Operational Support Hubs project.
• These hubs will function as a dispersed network of logistical stations, which will extend the operational reach of the Canadian Armed Forces, reduce logistical constraints, and enhance support for military operations in the Arctic.
• National Defence is working with territorial governments and Northern Indigenous partners to identify new hub locations, including exploring opportunities for dual-use infrastucture that supports both the CAF and civilian needs and modernize the North American Aerospace Defense Command (NORAD) through focused, collaborative engagement.

National Defence Engagement in the Atlantic

• The Royal Canadian Navy (RCN) maintains relationships with 13 Indigenous communities and the Kwilmu'kw Maw-klusuaqn (KMKNO), representing the Mi'kmaq of Nova Scotia.
• 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 on defence lands.

National Defence Engagement in the Pacific

• The RCN has strong relationships with Esquimalt, Songhees, Sc'ianew, Snaw-naw-as, and T'souke Nations, with emerging connections to 18 others.
• National Defence has established communication protocols with Tl'esqox and is pursuing similar agreements with two other nations for central British Columbia training area lands for the Canadian Army.
• The Royal Canadian Air Force are heavily engaged with K'omoks Nation for the lease back of Goose Spit lands (CFB Comox) from the Nation as stipulated within their initialed treaty.
• Collaboration covers mutual benefits on 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, maritime security and emergency response, amongst others.

Indigenous Representation in the Canadian Armed Forces (CAF)

• As of June 30, 2025, 2.8% of the Regular Force and Primary Reserve self-identified as Indigenous persons; the goal is 3.5% by 2026.
• As of June 30, 2025, 26.9% of Canadian Rangers self-identify as Indigenous persons.
• National Defence implements a broad range of proactive and targeted recruitment programs aimed at increasing the representation of Indigenous Peoples in the CAF. These programs and initiatives include:
  • The CAF Indigenous Entry Program;
  • The Indigenous Leadership Opportunity Year; and
  • Primary Reserve Indigenous Summer Programs
• These CAF summer programs have delivered strong results and provide valuable pathways for Indigenous individuals to explore or begin military careers. For example, the Indigenous summer programs recorded an approximate 88% graduation rate from 2013–2018. There exists a strong cultural integration as participants often join the CAF or become community leaders.

Engagements

• The Inuit-Crown Partnership Committee Working Group on Sovereignty, Defence, and Security continues to advance joint defence priorities, including the co-developed workplan with Defence on multi-purpose infrastructure and procurement in Inuit Nunangat.
• The Arctic Foreign Policy keeps Indigenous partners updated on international security trends and threats.
• The CAF has created several roles for Indigenous peoples to represent their interests, including the Defence Indigenous Advisory Group established in 1994.
• 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.
• The RCN is developing an Indigenous Relations Strategic Framework for policy guidance to advance reconciliation with Indigenous Peoples during its operations and activities.

Canadian Coast Guard's Indigenous Community Boat Volunteer Program

• The Indigenous Community Boat Volunteer Program provides funding to coastal Indigenous communities to buy boats and related marine safety equipment. This helps support their membership in the Canadian Coast Guard Auxiliary.
• Combined with training in search and rescue, the Program helps these communities carry out search and rescue operations making the waters near Indigenous coastal communities safer for everyone.

Aircraft Roles

• RCAF aircraft (CC-144 Challenger and Airbus CC-150 Polaris) are used for:
  • Rapidly deployable medical and military transport.
  • Secure and reliable transport for Government officials.

VIP Transport

• National Defence provides secure VIP transport at the request of the Government.
• Passenger lists and destinations are provided by the requesting agency/VIP office.
• National Defence organizes air travel logistics for reaching the requested destination.

Flight Menu Selection

• The RCAF Squadron and/or flight steward coordinates with the requesting VIP office.
• Menu approval is followed by catering orders placed with approved providers.
• RCAF flight stewards ensure compliance with Canadian food safety standards.

Catering Costs

• Includes food, non-alcoholic beverages, handling, delivery, storage, cleaning, disposal of international waste, airport taxes, administrative fees, security charges, and local taxes.
• Costs vary based on catering options available at global airports.

Fuel and Cost Tracking

• Fuel consumption estimated by flight hours and aircraft burn rate (e.g., 1,230 L/hour for CC-144 Challenger).
• Fuel costs calculated using average aviation fuel price (e.g., $1.765/L).

Government of Canada Official Air Transport

• The Royal Canadian Air Force (RCAF) provides secure and reliable air transportation for Government of Canada representatives, including the Prime Minister, Governor General, ministers, and other officials.
• This service ensures rapid deployment for official travel and supports operational readiness by allowing pilots and crew to maintain required flying hours.
• RCAF aircraft also fulfill critical roles such as medical evacuations and military transport for Canadian Armed Forces operations.
• For security reasons and in accordance with long-standing government policy, the Prime Minister must travel on government aircraft for both official and personal business.

Efforts to Improve Access to Information and Privacy (ATIP)

• To enhance the efficiency and compliance with ATIP requirements across the Defence Team several key initiatives have been implemented. These measures aim to streamline processes, improve access, and modernize the digital infrastructure.
• National Defence is improving ATIP awareness for all Defence Team members, including through mandatory ATIP training for all civilian managers/executives as well as Canadian Armed Forces supervisors/managers of civilians.
• In June 2025, a new Chief of Defence Staff/Deputy Minister Directive on Improving Compliance with the Access to Information Act and the Privacy Act was published. The directive sets clear expectations for how the Defence Team will uphold its legal obligations under the two Acts. Its purpose is to strengthen compliance across the institution and reinforce our commitment to transparent, accountable, and timely service to Canadians. 
• There has also been increasing engagement between the Information Commissioner and senior Defence leaders to ensure alignment on ATIP matters.

No Records Exist Responses

• A "No Records Exist" response to an Access to Information request may result from several different situations, for example:
  • The information was contained in a record which has passed the retention period and has been disposed of or transferred to Library and Archives Canada; or
  • The information requested was transitory in nature and was disposed of when no longer required in compliance with information management procedures.

Statistics

• The DND/CAF 2024-2025 Annual Report on the Administration of the Access to Information Act was tabled in Parliament on October 7, 2025, along with the reports of all departments.
• In the 2024-2025 fiscal year, National Defence received 2,494 new Access to Information requests, a 6.3% increase from the previous reporting period. In the same fiscal year, National Defence closed 2,218 ATI requests, also a 6.3% increase over the previous fiscal year.
• A total of 416,052 pages were processed during the 2024-25 fiscal year, releasing 286,069 pages in full or in part. This represents a 40 percent increase in pages reviewed over the previous fiscal year (296,479 pages).

Ongoing Judicial Review

• There is one ongoing case for judicial review with the Information Commissioner regarding compliance by National Defence with the Access to Information Act. It is being heard by the Federal Court on November 27, 2025.

• A new Official Languages Action Plan will be released in 2026 to align with the Modernized Official Languages Act (2023) and updated Treasury Board regulations (2025).
• National Defence and Canadian Armed Forces members deliver bilingual services to Canadians through its search and rescue coordination centres, public affairs offices and recruiting centres.
• Since June 20, 2025, employees in bilingual regions have the right to be supervised in the official language of their choice, regardless of their positions linguistic designation.
• Second-language requirements have also been strengthened requirements for supervisory positions in bilingual regions have been strengthened, increasing the minimum proficiency level from BBB to CBC for new appointments and vacancies.
• The modernized Act enhances compliance, granting the Commissioner of Official Languages new powers, including compliance agreements, orders, and monetary penalties for non-compliance.

• The Official Languages Act affirms English and French as Canada's official languages with equal status.
• The Modernized Official Languages Act (2023) introduced:
  • Stronger governance under Treasury Board for official languages compliance.
  • A regulatory framework for advancing equality of status and use of English and French.
  • Measures to support Francophone immigration and protect French as a minority language in North America.
• On June 20, 2025, two major changes under the Treasury Board Directive on Official Languages for People Management took effect:
  • Employees in bilingual regions gained the right to be supervised in the official language of their choice.
  • Minimum second-language requirements for supervisory positions in bilingual regions were increased to ensure compliance.
• These updates required revisions to the Directive to reflect the new rights and obligations.

• Reports for all departments were tabled in Parliament by the President of the Treasury Board on behalf of Ministers on November 7, 2025 and published on Canada.ca.

Key Defence Priorities in the 2024-25 Departmental Results Report

• Operations and Readiness, Reconstitution, Culture Evolution, Modernization, and Stewardship and Compliance

Canadian Armed Forces Reconstitution

• From April 1, 2024, to March 31, 2025, the Canadian Armed Forces (CAF) enrolled 6,706 new members into the Regular Force, surpassing the fiscal year goal of 6,496 recruits.
• Modernization Initiatives:
  • Launched trial programs to speed up the application process and improve onboarding;
  • Introduced new measures to enable the faster enrolment of applicants and streamline the security clearance process; and
  • Enhanced advertising and attractions activities, including increased face-to-face and targeted recruiting.
  • $1.395 billion in new underwater sensors

Funding Announcements

• On June 9, 2025, the Prime Minister of Canada and the Minister of National Defence announced Canada's plan to increase and accelerate investments in defence.
• This plan includes a cash increase of over $9 billion in defence investment this fiscal year (2025-26), bringing Canada's defence spending to 2 per cent of gross domestic product.

Spending Reductions

• In fiscal year 2024-25, National Defence targeted the following areas, and reduced spending by over $810 million:
  • $210 million less on consulting and other professional services contracts;
  • $58.6 million less in discretionary travel expenses (not CAF deployments);
  • $354.8 million saved on general operating costs, including from defence programs that historically have spent less than their annual budget allocation; and
  • $197.1 million saved from deferred initiatives, including from programs awaiting Treasury Board approval, and from revising project schedules for which a delay does not impact future military capabilities.
• Recognizing the importance of the Defence mandate and recent investments, National Defence has a lower savings target of 2%, in comparison to other government departments, starting next fiscal year.
• This does not impact funding from the June 2025 announcement of new investments in defending Canada, and capital budgets are not included in the review.

Departmental Results Report (DRR) and the Departmental Plan

• The DRR is an account to Parliament and Canadians of the actual performance of National Defence for 2024-25 against the plans, priorities and expected results communicated in the 2024-25 Departmental Plan.
• The document provides an overview of five Core Responsibilities.
  • Core Responsibility 1: Operations
    • Actual spending: $2,980,747,779
    • Actual full-time equivalent staff: 3,067
  • Core Responsibility 2: Ready Forces
    • Actual spending: $11,960,347,112
    • Actual full-time equivalent staff: 41,661
  • Core Responsibility 3: Defence Team
    • Actual spending: $4,521,073,589
    • Actual full-time equivalent staff: 21,118
  • Core Responsibility 4: Future Force Design
    • Actual spending: $1,490,747,381
    • Actual full-time equivalent staff: 2,202
  • Core Responsibility 5: Procurement of Capabilities
    • Actual spending: $7,383,814,779
    • Actual full-time equivalent staff: 3,239

Fleet Readiness

• Over 2024-25, the Defence Team continued to address long-standing readiness challenges. Some of these pressures were alleviated through targeted investments under Our North, Strong and Free. This included funding to help extend the operational life of the Halifax-class fleet, thereby contributing to improvements in naval readiness.
• Digital modernization of the Defence Supply Chain also continued, helping to ensure the CAF could support concurrent operations and remain ready for future challenges.
• To strengthen joint readiness, the CAF participated in a wide range of training exercises across domestic, continental, and international settings. These exercises involved close cooperation with other government departments, allies, and partner nations, and helped improve interoperability.

Bill C-11

• On September 26, 2025, Bill C-11 – formerly Bill C-66 – was reintroduced to amend the National Defence Act (NDA).
• Bill C-11 completed second reading on October 10, 2025, and was referred to the Standing Committee on National Defence for study.
• Bill C-11 will respond to eight recommendations from the Fish report and one recommendation from the Arbour report.
• Key areas of the proposed legislation:
  • Removing the Canadian Armed Forces' (CAF) investigative and prosecutorial jurisdiction over Criminal Code sexual offences committed in Canada (Recommendation 5 of Arbour Report);
  • Making amendments to the NDA based on the eight Fish report recommendations, which include, among other things, modifying the appointment process for the Director of Military Prosecutions, the Director of Defence Counsel Services, and the Canadian Forces Provost Marshal;
  • Excluding military judges from the summary hearing system, and expanding access to Victim's Liaison Officers;
  • Amending the National Defence Act 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 (former Bill S-12).

Reintroduction of Former Bill C-66

• On September 26, 2025, the Minister of National Defence reintroduced legislation to amend the NDA, under Bill C-11 An Act to amend the National Defence Act and other Acts.
• These amendments address eight recommendations from the Third Independent Review of the National Defence Act (IR3), conducted by former Supreme Court Justice Morris J. Fish, and address one recommendation from the Independent External Comprehensive Review (IECR), conducted by former Supreme Court Justice Louise Arbour.
• The recommendations were designed to enhance and modernize the military justice system.
• This legislation was first introduced in March 2024 as Bill C-66 but ceased to exist once Parliament was prorogued in January 2025.

Consideration in Committee

• The Standing Committee on National Defence (NDDN) initiated its study of Bill C-11 on October 27, 2025, with an appearance by the Minister of National Defence and supporting officials. Subsequent witnesses have included legal experts, retired military personnel, and individuals affected by military sexual misconduct.
• In undertaking its study, NDDN agreed to hold no more than six meetings with witnesses before proceeding with clause-by-clause review of Bill C-11.

Support to Affected Persons

• Since 2015, the Sexual Misconduct Support and Resource Centre (SMSRC) has worked to ensure that people affected by sexual misconduct have access to the support services and trusted resources they need.
• Over the past decade, their services, programs and initiatives have evolved to meet the needs of the wider Defence community.

Reimbursement of Legal Fees

• Section 249.17 of the NDA prescribes that, "A person who is liable to be charged, dealt with and tried under the Code of Service Discipline has the right to be represented in the circumstances and in the manner prescribed in regulations made by the Governor in Council".
• Section 249.19 of the NDA stipulates that "The Director of Defence Counsel Services provides, and supervises and directs the provision of, legal services prescribed in the regulations made by the Governor in Council to persons who are liable to be charged, dealt with and tried under the Code of Service Discipline".
• Article 101.11 of the Queen's Regulations and Orders (QR&Os) prescribes the types of legal services that can be provided by the Director of Defence Counsel Services.
• As such, the QR&Os do not prescribe providing legal services to persons who are subjected to investigations, arrests, detentions or trials that do not pertain to a Service Offence, including all offences tried in the civilian criminal justice system.

• CSE's mandate and powers are set out in the Communications Security Establishment Act (the CSE Act). This legislation came into force in August 2019.
• CSE's five-part mandate is detailed in the Communications Security Establishment Act (CSE Act), specifically:
  • foreign signals intelligence
  • cyber security and information assurance
  • active cyber operations
  • defensive cyber operations
  • technical and operational assistance to federal partners

Canada's Border Plan

• In December 2024, the Government of Canada released Canada's Border Plan.
• Backed by an investment of $1.3 billion and built around five pillars, Canada's Border Plan aimed to bolster border security and strengthen the immigration system by supporting more personnel, new technology and equipment, and enhancing coordination between national security, intelligence, and law enforcement agencies.
• The five pillars include:
  • Detecting and disrupting the fentanyl trade.
  • Introducing significant new tools for law enforcement.
  • Improving operational coordination.
  • Expanding information sharing.
  • Minimizing unnecessary border volumes.
• Specifically, the government announced an investment of $180 million over 6 years to expand CSE's intelligence collection and foreign cyber operations capacity, enabling CSE to target transnational organized crime and fentanyl trafficking more effectively.
• The government is ensuring 24/7 eyes on the border through round-the-clock surveillance and by mobilizing law enforcement and civilian forces with new and modernized equipment. Nearly 10,000 frontline personnel are working on protecting the border.

Directive on Transnational Crime and Border Security

• In February 2025, the Government of Canada issued a new intelligence directive on transnational crime and border security to detail how the national security, law enforcement, and intelligence community will use the new resources in the Border Plan to help advance the Intelligence Priority for "Translational Organized Crime, Cyber Crime, and Border Security".
• In line with the Border Plan, the Government of Canada also established a Joint Operational Intelligence Cell (JOIC), led by Public Safety Canada, to bring together Canadian security departments and agencies, and law enforcement partners to better leverage information sharing to target transnational organized crime, money laundering, drug trafficking and improve border security.

Bill C-2 – The Strong Borders Act

• In June 2025, Public Safety Canada introduced Bill C-2, the Strong Borders Act, to strengthen laws and keep Canadians safe.
• This Bill will ensure law enforcement has the right tools to keep Canadian borders secure, combat transnational organized crime, stop the flow of illegal fentanyl, and crack down on money laundering.
• The Bill will bolster Canada's response to increasingly sophisticated criminal networks and enhance the integrity and fairness of the immigration systems while protecting Canadians' privacy and Charter rights.
• The Bill passed first reading on June 3, 2025, and is at second reading in the House of Commons.

Legal Framework and Authorities

• CSE is Canada's foreign signals intelligence agency and the technical authority for cyber security and information assurance.
• The CSE Act authorizes CSE to carry out two types of foreign cyber operations: active and defensive.
• Defensive cyber operations allow CSE to take online action to defend Canada against foreign cyber threats, such as disabling a foreign server targeting Canadian networks.
• These operations can also protect systems designated by the Minister of National Defence, including energy grids, telecommunications, healthcare, banking, and elections infrastructure.
• Active cyber operations allow CSE to disrupt foreign threats such as terrorist groups, cyber criminals, hostile intelligence agencies, and state-sponsored hackers.
• Cyber operations must relate to international affairs, defence, or security and are conducted in accordance with Canadian and international law.
• Cyber operations require Ministerial Authorization under the CSE Act, with consultation or consent from the Minister of Foreign Affairs depending on the type of operation (Active Cyber Operations require consent. Defensive Cyber Operations require consultation).
• CSE's activities must not target Canadians or any person in Canada.
• Canada's cyber operations are governed by a strong framework of independent review, internal oversight, and operational compliance.
• Operations are subject to checks and balances including rules of engagement, targeting protocols, and collateral damage assessments.

Operational Capabilities and Cyber Defence

• CSE's cyber and technical expertise helps identify, prepare for, and defend against severe and persistent cyber threats.
• The Canadian Centre for Cyber Security (Cyber Centre) consolidates key cyber security units under one roof, providing expert advice and operational support.
• The Cyber Centre defends Government of Canada systems using tools like sensors that detect malicious activity across networks and cloud environments.
• In 2024-25, the Cyber Centre responded to 1,155 cyber security incidents reported by federal institutions.
• The Cyber Centre supports secure communications, conducts supply chain integrity assessments, and monitors threats to high-priority government projects.
• CSE and the Canadian Armed Forces (CAF) collaborate on specialized cyber capabilities and joint operations.
• Joint CSE/CAF cyber operations are conducted under the CSE Act, the Crown Prerogative, and the National Defence Act.

Strategic Partnerships and Collaboration

• The Cyber Centre works with industry partners to share threat information and prevent cyber incidents.
• It establishes strategic partnerships with critical infrastructure operators to share intelligence and integrate cyber defence technologies.
• In 2024-25, the Cyber Centre collaborated with mobile network operators and global experts to enhance 5G network resilience.
• The Cyber Centre participated in over 200 speaking engagements across sectors such as energy, health, finance, and telecommunications.
• It also conducted 13 tabletop exercises and 7 technical briefings on topics like AI, quantum threats, and cybercrime.
• The Cyber Centre conducted 1,371 supply chain risk assessments, evaluating technical vulnerabilities and vendor practices.
• It increasingly collaborates with provinces, territories, and private sector partners on supply chain risks.

National Cyber Security Strategy (NCSS)

• In February 2025, the Government of Canada released its new National Cyber Security Strategy (NCSS).
• The NCSS outlines a long-term plan to partner with provinces, territories, law enforcement, industry, Indigenous communities, and academia.
• The strategy is guided by two principles: whole-of-society engagement and agile leadership.
• It focuses on three pillars: protecting Canadians and businesses, making Canada a global cyber leader, and disrupting cyber threat actors.
• The Cyber Centre plays a key role in the NCSS by protecting government systems, leading incident response, and promoting innovation and cyber skills.

Public Engagement and Support

• The Cyber Centre provides Canadians and businesses with a trusted source for cyber security advice and guidance.
• It supports federal institutions in responding to incidents and enhancing cyber resilience.
• In 2024-25, the Cyber Centre worked with 150 federal organizations, delivering briefings to departments at higher risk of cyber threats.
• It provided 38 biweekly threat briefings to over 600 IT professionals in critical infrastructure sectors.
• The Cyber Centre urges Canadian companies impacted by cyber threats to contact them via toll-free number (1-833-CYBER-88), email (contact@cyber.gc.ca), or the Canadian Centre for Cyber Security website.

• Canada is not immune to threats to its digital infrastructure. As new technologies emerge and our adversaries develop new techniques over time, investments are needed to both leverage these new capabilities and secure our digital infrastructure.
• The new Defence Investments aim to modernize Canada's Top Secret systems to support national defence, security, and international affairs.
• This covers foundational investments in Canada's Top Secret ecosystem, including Canada's Top Secret Network, artificial intelligence and cryptography.
• These investments strengthen Canada's sovereignty and security, ensure the protection of sensitive information, and position Canada as a capable and trusted partner in global defence and intelligence collaboration.

Threat environment

• Canada's digital environment is increasingly vulnerable to adversaries and technological advances such as quantum computing.
• CSE assesses that as early as the 2030s, a powerful enough quantum computer will exist that will break the cryptography used today to secure communications worldwide.
• The Government of Canada relies on cryptography to protect sensitive information, communications, and information technology systems from cyber threats and unauthorized access.
• To address this reality, Canada, in line with its Five Eyes allies, continues to modernize and harden its operations and services for its Top-Secret environment.
• The recent defence investments will enable the delivery of resilient and sovereign Canadian solutions to enhance security, interoperability and integrity of classified operations and services.

Future year funding

• CSE is actively engaged with the Treasury Board Secretariat and federal partners to secure TB approval on implementation plans, and the required funding will be sought as part of future Estimates.

Canadian Top Secret Network (CTSN)

• The Canadian S&I community comprises several distinct but interconnected communities: intelligence, law enforcement, defence, security, and foreign affairs.
• The efficient and effective functioning of this community relies on the right information getting to the right people securely and at the right time in order to take timely and decisive action.
• The Canadian Top Secret Network (CTSN) allows information to be shared at the Top Secret level across the Canadian S&I community. CSE runs Canada's Top Secret Network (CTSN).
• CTSN also enables clients across the Government of Canada and the Five Eyes to access CSE's intelligence reporting.