House Committee on Public Accounts (PACP): Office of the Auditor General: Recruiting for Canada's Military, 20 April 2026

• John Williamson
• Jean Yip
• Sébastien Lemire
• Gérard Deltell
• Ned Kuruc
• Stephanie Kusie
• Ron McKinnon
• Tom Osborne
• Kristina Tesser Derksen

• Findings from the Fall 2025 Auditor General report on Canadian Armed Forces (CAF) Recruitment:
  • 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.
• The authorized target strength:
  • Canadian Armed Forces Regular Force: 71,500
  • Primary Reserve Force: 30,000
• Current Force Strength (as of March 31, 2026):
  • 67,800 Regular Force members
  • 25,100 (Average Paid Strength) Primary Reserve Force members
  • This is approximately 8,600 short of the authorized strength.
• Regular Force and Primary Reserve Intakes:
  • Fiscal Year 2025-26 intake (as of March 31, 2026): 13,100 individuals
    • 17.7% of whom were women and 22.3% of whom identified as francophone.
  • Fiscal Year 2024-25 intake: approximately 11,500 individuals.
  • Fiscal Year 2023-24 intake: approximately 8,100 individuals.

Fall 2025 Auditor General report on Canadian Armed Forces (CAF) Recruitment

• The objective was to determine whether the CAF recruits and trains the members it needs to meet operational requirements.
• The audit made six key recommendations:
  1. The CAF 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 CAF should implement and monitor actions to address understaffed occupations, particularly those that are in-demand.
  3. The CAF 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 CAF 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 CAF should adopt a consistent approach to manage basic and occupational training across the organization.
  6. The CAF should identify sustainable solutions to ensure the security screening process is efficient and timely to meet its needs.

Recent Improvements to Recruitment

• Online Applicant Portal (launched March 3, 2025)
  • Designed to offer prospective candidates a more active role in the processing of their files, giving them the option to upload files electronically, book appointments online, and track the progress of their application.
• Probationary Period (in effect since December 31, 2024)
  • This initiative responds to a recommendation from the Independent External Comprehensive Review and aims to support positive cultural change within the CAF while accelerating the intake of new members to address personnel shortages.
  • It enables applicants to receive a Reliability Status upon enrolment and begin Basic Military Qualification or Basic Military Officer Qualification training while their full security clearance and remaining administrative requirements are still being processed.
  • If, during this period, a recruit does not meet the required standards or fails to obtain the necessary clearances, they will be released from the CAF.
• Modernizing the Common Enrollment Medical Standard (announced in January 2025)
  • The CAF will now consider applicants with medical conditions for enrolment, including ADHD, anxiety and asthma, instead of automatically disqualifying them.
  • All individuals who are assessed to be medically fit may attempt basic training.
  • The new standard focuses on medical safety to attempt basic training and supports a case-by-case review of applicant files, helping to identify more individuals who are capable of successfully enrolling.
  • This approach ensures that the CAF continues to uphold the principle of Universality of Service, while modernizing recruitment practices to be more inclusive, efficient, and responsive to the needs of Canadians.

Canadian Armed Forces Strength

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

Primary Reserve - Total Strength (TS)

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

Cost-of-Living Supports – Salary Increases

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

Additional Compensation Measures

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

Increasing Basic Training Capacity

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

Digital Onboarding System

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

Critical Occupation Recruitment Allowance (CORA)

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

Cost-of-Living Supports – Childcare

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

Cost-of-Living Supports – Housing

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

Auditor General Report on CAF Recruitment

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

Recommendations Addressed

• To date the following recommendations have been addressed:
  • 47 of 48 recommendations from Justice Arbour in the Independent External Comprehensive Review (IECR), recommendation 5 is dependent on the passage of Bill C-11, An Act to amend the National Defence Act and other Acts (Military Justice System Modernization Act);
  • 126 of 194 recommendations in the Comprehensive Implementation Plan (CIP);
  • all 8 recommendations from the National Apology Advisory Committee Report (2022); and
  • all 39 of the actionable recommendations of the Advisory Panel on Systemic Racism (2022).

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, 47 of 48 recommendations have been addressed.

Comprehensive Implementation Plan (CIP)

• The CIP establishes a phased approach over five years (2023-28) for prioritizing and addressing 194 external recommendations from the IECR, Third Independent Review of the National Defence Act (IR3), authored by Justice Morris J. Fish, Minister's Advisory Panel on Systemic Racism (APR) and Discrimination, and No. 2 Construction Battalion National Apology Advisory Committee Report.
• 126 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 states that, beyond recommendations on conduct, culture, health, wellbeing, and peer leadership, it further advances recommendations on identity, governance, program design, and infrastructure aimed at refocusing and renewing the CMCs.
• Work is underway to address the 49 recommendations.

Sixth External Monitor Report (November 2025)

• Issued November 5, 2025 (published on November 20, 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, External Monitor Madame Jocelyne 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 submit the form from anywhere, streamlining the process, reduce processing times and providing better access for members.

Victim Rights – Legislative Context

• Bill C-16, the Protecting Victims Act, was introduced in the House of Commons on December 9, 2025.
• The Bill proposes amendments to several federal statutes, including the National Defence Act, to strengthen victim rights within the military justice system.
• Proposed amendments include expanded identity-protection measures, requirements for military justice authorities to proactively provide certain information to victims, and updates intended to further align military justice procedures with Criminal Code standards.

Sexual Misconduct Support and Resource Centre (SMSRC)

• The SMSRC provides support services to adults (aged 16 years and older) in the following groups:
  • currently serving members of the CAF;
  • former members of the CAF;
  • DND public service employees;
  • former DND public service employees;
  • Members of the Canadian Coast Guard;
  • Cadets;
  • Junior Canadian Rangers;
  • families of the above; and
  • Defence community members and caregivers who support those affected.
• The SMSRC provides expert advice, guidance and recommendations to DND/CAF on all matters related to sexual misconduct. It may engage with DND executives and management and the Chief of the Defence Staff and other CAF commanders to ensure that its advice and recommendations are understood.

Independent Legal Assistance (ILA) Program

• The ILA Program provides no-cost, independent legal assistance to those impacted by sexual misconduct in the DND/CAF context.
• Services expanded in May 2025 to include direct legal services which include the provision of legal information, advice and representation by in-house independent legal counsel in certain areas, while reimbursements remain available for expenses incurred for assistance from an external lawyer.
• Program design is survivor-centered, trauma-informed, and informed by key external reviews and survivor consultation.
• SMSRC independent legal assistance remains available regardless of whether a matter proceeds through the civilian or military justice system.

Peer Support Program

• The Peer Support Program is a joint initiative between the SMSRC and Veterans Affairs Canada (VAC) offering free, bilingual, trauma-informed peer support to those affected by sexual misconduct and Military Sexual Trauma (MST) during their service and/or in their workplace who are 18 years and older.
• The program is now permanently funded following a successful pilot phase and continues to expand access for diverse populations, including 2SLGBTQI+ and men's groups.

Community Support for Sexual Misconduct Survivors Grant Program

• The Community Support for Sexual Misconduct Survivors Grant Program funds community-based organizations across Canada that provide trauma-informed supports to individuals, families, and supporters within the wider Defence community affected by sexual misconduct.
• Since its creation in 2022, the program has expanded access to services, filled critical gaps and strengthened collaboration with civilian support networks with its funded 64 projects reaching more than 4,000 Defence community members across Canada.
• Funding supports projects designed to remove barriers and meet the needs of survivors of sexual misconduct, including women, men, gender-diverse people, 2SLGBTQI+ communities, Indigenous Peoples, racialized groups, persons with disabilities, and those living in remote or official-language-minority communities.

Military Liaison Team to the SMSRC

• The Military Liaison Team is a resource provided through the SMSRC to strengthen the connection between the SMSRC and the military system.
• The main roles of the team include providing guidance and advice surrounding the internal CAF policies that exist surrounding sexual misconduct, as well as helping to identify client specific options for support and reporting.
• The team helps facilitate communication between affected members and chains of command, and they support chains of command to help navigate challenging and sensitive situations they are dealing with at the unit level.
• They also provide training to SMSRC staff to ensure they understand CAF culture and the lived realities of CAF members.

Other SMSRC Programs and Services

• The SMSRC offers a toll-free 24/7 Support Line: 1-844-750-1648.
• The Response and Support Coordination Program, launched in 2019, offers ongoing support, advocacy, and personalized case management.
• The Restorative Engagement Program on Sexual Misconduct provides supportive and facilitated restorative opportunities for Sexual Misconduct Class Action Members to be heard and acknowledged, and for Defence Representatives to learn, understand, plan, act and lead as catalysts for change supporting the Institution to end sexual misconduct.
• The Restorative Engagement Program is supporting all interested class members through trauma-informed, voluntary, and confidential participation.
• The SMSRC is leading the design and delivery of Restorative Engagement on Systemic Racism as part of the CAF Systemic Racism Class Action Settlement.
• The SMSRC is expanding its support services to persons affected by racism and is committed to consulting with clients to ensure services meet their needs.

Current Staffing Levels

• Fill rate is 71% for fighter pilots.
• Fill rate is 89% for air maintenance personnel.

If pressed for absolute staffing numbers as opposed to percentages:

• Exact numbers of fighter pilots are related to operational capability and are therefore sensitive.

Retention

• The new pay scale compensates pilots based on their experience and qualifications.
• With the pay increase announced in August 2025 and backdated to April 1, 2025, pilots have now received a 13% pay increase.

Training

• Initial pilot training takes place in Portage La Prairie, Manitoba, and Moose Jaw, Saskatchewan.
• In Fiscal Year 2024-25, the Royal Canadian Air Force (RCAF) trained 34% more pilots than the previous year.
• In the same year, the RCAF trained the maximum capacity of air maintenance technicians and is contracting with Public Services and Procurement Canada to increase training capacity by using domestic college training programs.

Examples of Recruitment and Training Initiatives for Pilots and Technicians

• The Royal Canadian Air Force (RCAF) Intake and Liaison Team (AFILT) support the enrolment of members with previous military experience. In Fiscal Year 2024-25, AFILT facilitated the enrolment of 55 fully qualified members into the Air Force.
• The Non-Commissioned Member Subsidized Training and Education Plan (NCM-STEP), offers paid education opportunities in partnership with 14 aviation colleges across Canada.
  • The RCAF enrolled 58 members through NCM-STEP last fiscal year and an additional 36 members through the Semi-Skilled and Skilled Entry Plans.
• The Future Aircrew Training program will provide new aircraft, simulators, and training approaches to modernize pilot training.

Auditor General (AG) Reports

• On June 10, 2025, the AG published Report 2 – Delivering Canada's Future Fighter Jet Capability.
  • While none of the AG's recommendations address pilot and technician staffing directly, the audit does highlight insufficient staffing levels as a significant risk to the timeline for the F-35 to reach Full Operational Capability.
• In Fall 2018, the AG published Report 3 – Canada's Fighter Force.
  • In the report, the AG noted that "the Royal Canadian Air Force faced a growing shortage of trained and experienced pilots and technicians".
  • Recommendation 1 stated that: "National Defence should develop and implement recruitment and retention strategies for fighter force technicians and pilots that are designed to meet operational requirements and prepare for the transition to the replacement fleet".
  • National Defence has reported annually, by June 30, to the Standing Committee on Public Accounts (PACP) on this recommendation since 2019.

• A new Official Languages Action Plan will be released in 2026 to align with the modernized Official Languages Act (2023) and updated Treasury Board Directive on Official Languages for People Management (2025).
• National Defence and Canadian Armed Forces members deliver bilingual services to Canadians through 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 position's linguistic designation.
• Second-language 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.

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

Budget 2025

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

NATO Common-Funded Budget

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

Defence Spending – 2% of Gross Domestic Product Target

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

Areas of Defence Investment and Notable Initiatives

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

NATO Investment Pledge

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

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

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

Parliamentary Budget Officer (PBO) Report (2026)

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

• The authorized Target Strength:
  • Canadian Armed Forces Regular Force: 71,500
  • Primary Reserve Force: 30,000
• Current Force Strength (as of March 15, 2026):
  • 67,000 Regular Force members
  • 24,900 (Average Paid Strength) Primary Reserve Force members
  • This is approximately 9,600 short of the authorized strength.
• Supplementary Reserve (as of November 10, 2025):
  • Approximately 4,500 members

• Article in the Ottawa Citizen (November 10, 2025)
  • Stated that the Canadian Armed Forces (CAF) is counting on public servants to volunteer for military service to increase its Supplementary Reserve Force up to 300,000 members.
  • The article referenced a directive signed by the Chief of the Defence Staff and Deputy Minister from May 30, 2025.
  • The internal document formalized the initiation of planning efforts for which there are no associated cost estimates, timelines, or specific targets for the recruitment of public servants.
• Follow-up interview with CTV (November 11, 2025)
  • General Carignan clarified that the plan is still being studied, that participation would be voluntary, and that it would be open to all Canadians – not exclusively focused on public servants.
• Year-end interview (December 11, 2025)
  • The Minister of National Defence noted that the plan to boost Canada's military reserves is more about building a civil emergency relief force than preparing volunteers for combat operations.
• Changes to the Supplementary Reserve would be part of a larger comprehensive transformation of the Reserve Forces, as first introduced in the Defence Policy in 2017.

Supplementary Reserve

• The Queen's Regulation and Order (QR&O) 2.034 notes that the Supplementary Reserve consists of officers and non-commissioned members who, except when on active service, are not required to perform military or any other form of duty or training.
• The Defence Administrative Order and Directive (DAOD) 2020-4, Supplementary Reserve, and associated instructions (Canadian Armed Forces Military Personnel Instruction 02/15 – Supplementary Reserve), detail that the purpose of the Supplementary Reserve is to augment the Regular Force and other sub-components of the Reserve Force with individual officers and non-commissioned members.
• Augmentation is accomplished by providing CAF members of the Supplementary Reserve to the Regular Force and other sub-components of the Reserve Force through the component and sub-component transfer processes:
  • As required during normal peacetime situations, with the consent of each Supplementary Reserve member; or
  • During an emergency or if placed on active service, without their consent.
• The Supplementary Reserve currently allows for:
  • Members who previously served in the Regular Force or other sub-component of the Reserve Force; and
  • Persons without previous military experience who have special skills or expertise and for which there is a military requirement.
• Ongoing prudent military planning to provide options related to rapid military expansion in times of crisis or conflict includes how to best use the Supplementary Reserve.

Extremism and hateful conduct

• If a Canadian Armed Forces (CAF) member is suspected of having engaged in hateful conduct, consequences may include training, monitoring, removed access to materials, investigation and administrative or disciplinary actions.
• Bill C-9, the Combatting Hate Act, was introduced in the House of Commons on September 19, 2025, and recently completed first reading in the Senate. The Bill 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.
• Hateful Conduct Spectrum (available to all Defence Team members and the public at Canadian Army Order 11-82 Hateful Conduct - Canada.ca):
  • 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.
  • 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.
• CAF 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.
• CAF Transition Group is actively reviewing and enhancing its services to better equip releasing CAF members with the awareness and resilience necessary to resist such recruitment efforts.
• The Sexual Misconduct Support and Resource Centre is:
  • Leading the design and delivery of Restorative Engagement on Systemic Racism as part of the CAF Systemic Racism Class Action Settlement; and
  • Expanding its support services to persons affected by racism and is committed to consulting with clients to ensure services meet their needs.

• Hateful Conduct:
  • The Canadian Armed Forces (CAF) defines hateful conduct in Defence Administrative Orders and Objectives, Conduct and Performance Deficiencies (DAOD 5019-0):
    • "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 their national or ethnic origin, race, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics or disability."
• If a military member is suspected to have engaged in hateful conduct, consequences may include:
  • Mandating the completion of appropriate learning, training, or professional development;
  • Documenting observations in individual performance evaluations;
  • Increased reporting and performance monitoring;
  • Withdrawal of any authority provided to a CAF member, including revocation of their security clearances and access to weapons, equipment and facilities;
  • Reporting of the incident of hateful conduct to the appropriate investigative organization, such as the Canadian Forces National Investigation Service or the Military Police;
  • Administrative action, which can include remedial measures or, in more serious cases, release from the CAF;
  • Criminal proceedings in the civilian justice system; and
  • Disciplinary action, such as a court martial or summary hearing, depending on the seriousness of the incident and the nature of the evidence.
• In some cases, a military member may be temporarily relieved from performance of military duty when an investigation has commenced, they have been charged with an offence or they have been found guilty.
• Transitioning Military Members:
  • Recognizing the tangible risk that transitioning military members may be targeted by extremist groups, the CAF Transition Group is actively reviewing and enhancing its services to better equip releasing CAF members with the awareness and resilience necessary to resist such recruitment efforts.
  • This initiative is being undertaken in close collaboration with partners at Chief Military Personnel and Veterans Affairs Canada.
  • The Transition Group also acknowledges the importance of aligning efforts with Commanding Officers and their delegates, given their responsibilities regarding education and training on hateful conduct, in accordance with internal instructions on hateful conduct for CAF members.

Specific Incidents

• On March 9, 2026, three members of the CAF were found to have accounts on a white-only dating site that promoted white supremacist ideology.
• On August 19, 2025, media reports emerged of alleged hateful conduct involving soldiers caught on video delivering Nazi salutes.
• On July 8, 2025, the Royal Canadian Mounted Police announced the arrest and laying of charges against four individuals, including active members of the CAF, who were allegedly involved in activities intending to forcibly take possession of land in the Québec City area.

Canadian Armed Forces (CAF) Arctic Presence

• The North American Aerospace Defense Command (NORAD) conducts operations to defend the approaches to North America with personnel on watch 24/7. More than 50% of NORAD's area of operation is in the Arctic.
• The CAF permanent presence in the North is anchored by Joint Task Force North (JTFN). Currently, up to 160 personnel could be stationed with JTFN, which is headquartered in Yellowknife with detachments in Whitehorse and Iqaluit.
• There are approximately 5,000 Canadian Rangers that maintain a meaningful presence in 208 remote and isolated communities, including over 1,500 Rangers in 66 Northern communities.
• On March 18, 2025, Prime Minister Carney announced $420 million in new funding to boost the presence of the CAF in the North and Inuit Nunangat.

Canadian Coast Guard (CCG) Arctic Presence

• Regional headquarters in Yellowknife, Northwest Territories (NT), and CCG Base in Hay River, NT;
• Response depots in Yellowknife, NT, and Iqaluit, Nunavut (NU);
• Marine Communications and Traffic Services Centre in Iqaluit, NU, plus 10 remotely controlled radio sites;
• Environmental response depots (staffed) in Yellowknife and Hay River, NT, and Iqaluit, NU, and (unstaffed) in Churchill, Manitoba, and Tuktoyaktuk, NT;
• Arctic Marine Response Station in Rankin Inlet, NU, operating from June to November;
• 47 CCG Environment Response Equipment Caches;
• 11 Remote Communication Sites;
• 1 Rapid Air Transportable Pack in Hay River, NT;
• Over 2,000 Lit and Un-Lit Fixed and Floating Aids to Navigation; and
• CCG Auxiliary - Arctic Chapter: 41 units; 576 members; 61 vessels.

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

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

Defending, Building, and Transforming the North

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

Canadian Armed Forces (CAF) Presence in the Arctic

• Joint Task Force North
  • Anchors the CAF's permanent presence in the North in Yellowknife, Northwest Territories (NT), with detachments in Iqaluit, Nunavut (NU) and Whitehorse, Yukon Territory (YT), along with 440 Transport Squadron, 1 Canadian Ranger Patrol Group Headquarters, and a Company of Reserve Infantry.
• Canadian Army's Arctic Response Company Groups:
  • Conduct sovereignty operations;
  • Facilitate disaster response support; and
  • Provide general assistance to other government departments in the Canadian North.
• The CAF's footprint in the North and Inuit Nunangat:
  • Canadian Forces Station Alert, the northernmost CAF outpost;
  • CAF Arctic Training Centre in Resolute Bay, NU, which provides a permanent location for training and operations in the Arctic and is staffed approximately 9 months of the year; and
  • Assets that support North American Aerospace Defense Command (NORAD) operations, including the North Warning System, three Forward Operating Locations in, Inuvik, NT, Iqaluit, NU and Yellowknife, NT, and one Deployed Operating Base in Goose Bay, Newfoundland and Labrador (NL).
• Collaboration with intergovernmental and Northern First Nations, Inuit and Métis partners to ensure we are fulfilling obligations under modern treaties, land claims agreements, and self-government agreements:
  • This is in addition to collaboration through the Inuit-Crown Partnership Committee (ICPC), which meets three times annually, and provides briefings to Northern Premiers and Indigenous leaders; and
  • The ICPC has co-developed a work plan with Defence focused on multi-purpose infrastructure and procurement in Inuit Nunangat.
• Northern Operational Support Hubs (NOSHs)
  • $2.7 billion over 20 years (cash basis)
  • These hubs will better ensure Canadian sovereignty by establishing a greater year-round presence across the Arctic and the North, and investing in multi-purpose, dual-use infrastructure that also meets the needs of the territories, Indigenous Peoples, and Northern communities.
  • On March 6, 2025, the Minister of National Defence announced Inuvik, NT, Yellowknife, NT and Iqaluit, NU, as 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 CAF operations.
  • As part of this project, National Defence is maintaining and enhancing CAF infrastructure at Inuvik, NT, Yellowknife, NT, Iqaluit, NU, and 5 Wing Goose Bay, NL.
  • The investment covers recapitalization, modernization, replacement or addition of new critical infrastructure, airfield rehabilitation, as well as upgrades to security, information management/information technology, and electrical systems.
• Separate from Northern Basing Infrastructure, other projects will upgrade infrastructure in Alert and Rankin Inlet, NU, the North Warning System locations, and the Whitehorse Cadet Camp, YT.
• On March 18, 2025, Prime Minister Carney announced $420 million in new funding to boost the presence of the CAF in the North and Inuit Nunangat.
  • This expansion anticipates including more CAF personnel and the potential for increased inclusion of forces from allied nations with an Arctic interest.
  • New activities and increased resources aim to support a near persistent operations through Operation NANOOK and other exercises and training to assert Canada's presence and sovereignty, as well as refine information-sharing processes.

Exercises and Operations

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

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

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

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

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

The Canadian Coast Guard (CCG) Presence in the Arctic

• The CCG Arctic Region has grown to more than 120 full-time employees dedicated to program delivery in the Arctic, with over 50% of its employees based in the North.
• The CCG Arctic Region is headquartered in Yellowknife, NT, and includes bases in Hay River, NT, and Iqaluit, NU.
• The Iqaluit base includes the Marine Communications and Traffic Services Centre, which operates from mid-May to mid-December.
• Canadian Coast Guard Auxiliary (CCGA)
  • The CCGA is a volunteer organization supporting the CCG in the Arctic and 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 576 members and 61 vessels.
  • This expansion has strengthened local response capacity and search and rescue.
• Arctic Marine Response Station (AMRS), Rankin Inlet, NU
  • The AMRS is the CCG's first search-and-rescue facility in the Arctic, improving maritime safety in the western Hudson and James Bay.
  • The station operates seasonally from June to November.
• CCG Arctic Region's Marine Environmental and Hazards Response (MEHR) team
  • Has enhanced the Agency's footprint across the Canadian Arctic with staffed facilities in Iqaluit, Yellowknife and Hay River, NT.
  • It will also place equipment caches in 47 communities by the end of Fiscal Year 2025-26, augmenting primary response capacity for spills.
  • Community caches save significant time and resources to support effective regional response to marine pollution incidents while larger equipment is mobilized from depots, CCG fleet, or industry.
• Polar Icebreakers
  • On March 8, 2025, a contract totaling $6.4 billion with Vancouver Shipyards and Chantier Davie was announced for the construction of two Polar Icebreakers expected to be delivered in 2030 and 2031.
  • This will enable a sustained year-round Arctic presence and strengthen the CCG's capacity to deliver critical services in the North, including icebreaking, search and rescue, environmental response, and support to hydrographic services.
• Arctic and Offshore Patrol Ships (AOPS)
  • Two Arctic and Offshore Patrol Ships are under construction and expected to be delivered in 2026 and 2027.
  • They will provide further flexibility for the CCG to operate in Northern and Arctic waters, including enabling opportunities for cooperation and exercises with the Royal Canadian Navy.
• Bill C-12, the Strengthening Canada's Immigration System and Borders Act (received royal assent on March 26, 2026) expands the CCG's services to include security activities. This change, alongside further investments, will enhance Arctic Maritime Domain Awareness, improve intelligence, surveillance, and reconnaissance capabilities, and enable Arctic security patrols and interoperability with defence and security partners.

International Cooperation

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

Arctic Infrastructure Fund – Defence perspective

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

Current Housing Portfolio

• National Defence's 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 Residential Housing Units.

2025 Office of the Auditor General Report on CAF Housing

• The audit made eight recommendations and found that:
  • National Defence 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 or 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.
  • National Defence 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 Report of the Standing Committee on National Defence regarding Canadian Armed Forces Housing: Gaps to Fill: Housing and Other Needed Supports for Canadian Armed Forces Members and their Families

• The report found that CAF members and their families face serious challenges due to inadequate housing, frequent relocations, and limited access to essential services, prompting 25 recommendations for federal action to improve housing, financial support, and family well-being.

2025 Office of the Auditor General Report on Canadian Armed Forces Housing

• This audit focused on whether National Defence managed living accommodations to meet operational requirements and respond to the needs of Canadian Armed Forces (CAF) members.

Recommendations

1. National Defence should define how quarters will be used to meet the operational need for living accommodation.
2. National Defence should establish national management and information collection processes to ensure that standards for the allocation of quarters to CAF members are met.
3. National Defence should ensure that it completes inspections of its quarters, and completes maintenance and repairs needed to maintain their physical condition.
4. The Canadian Forces Housing Agency (CFHA) should ensure that it regularly reviews allocation decisions to ensure that applications have been correctly prioritized and that data used to make allocation decisions has been accurately captured. It should take corrective action as needed.
5. The CFHA should ensure that condition assessments of Residential Housing Units are completed according to the required timelines, and the results are used to plan timely maintenance activities, renovations, and new construction.
6. National Defence should complete its reassessment of the needs of the CAF for residential housing. It should then update its cost estimate and plan to meet any shortfall and implement it in a timely manner. It should regularly update its assessment to consider future growth of the CAF and changes in the geographical distribution of personnel.
7. National Defence should establish and implement the living accommodation policies and procedures needed to ensure that the emergency shelter and accessibility needs of CAF members are met in a timely manner.
8. National Defence should evaluate the impact of the living accommodations policy update on the wellbeing and retention of longer serving members of the CAF and act on the results.

2024 Report of the Standing Committee on National Defence (NDDN) regarding 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, and highlights:
  • Challenges experienced in accessing suitable housing include long waitlists, deteriorating conditions of existing units and quarters, and rising rental costs.
  • Broader relocation-related challenges of CAF members and their families, especially in accessing health care, childcare, education, and employment for spouses.
• The Committee issued 25 recommendations urging the government to reverse rent increases, expand and renovate housing, improve contractor oversight, enhance relocation services, and collaborate with provinces and municipalities to support CAF families more effectively.
• A Government Response addressing these recommendations was tabled in the House on January 26, 2026.

2015 Office of the Auditor General Report on CAF Housing

• In Fall 2015, the Auditor General released a report on CAF Housing focused on whether the Defence Team managed military housing in a manner that supported housing requirements, that was consistent with government regulations and policies, and that was cost-effective.
• The audit found that National Defence's policy aligned with government policy, but key internal requirements were not met – specifically, defining operational needs and assessing the private housing market.
• Additionally, National Defence lacked approved plans to meet current and future housing needs and faced constraints that limited effective modernization of its housing portfolio.
• In 2016, the House of Commons Standing Committee on Public Accounts examined the audit and issued three recommendations to National Defence.
• As a result, National Defence:
  • Updated its Living Accommodation Policy;
  • Completed a comprehensive assessment of the housing portfolio's condition; and
  • Developed a long-term accommodation plan to address current and future housing needs.

Current Housing Portfolio

• National Defence's residential housing portfolio includes 11,737 residential housing units at 27 locations across Canada.
• Approximately 16% of Canadian Armed Forces members currently live in National Defence housing.

Shelter Charges

• For Fiscal Year 2025-26, the national average shelter charge was $1,066 per month in a housing portfolio made up of mainly of three- and four-bedroom units.
• For Fiscal Year 2026-27, the national average shelter charge is $1,133 per month.
  • This is an average increase of 5.1% or approximately $57 per month.
  • These adjustments will take effect May 1, 2026.
• Annual adjustments are made based on the Statistics Canada Consumer Price Index.
• When annual adjustments result in an increase, shelter charges are limited to a maximum of $100 per month to protect members from sudden and substantial changes.

Canadian Forces Housing Agency Construction Program

• Launched in Fiscal Year 2024-25, Phase 1 of the Construction Program, is delivering over 800 new units in nine locations experiencing significant housing pressures.
  • These are Gagetown, Halifax, Valcartier, Trenton, Kingston, Petawawa, Borden, Edmonton, and Esquimalt; locations with the highest number of Canadian Armed Forces (CAF) entrants, members on long-term training, and private sector market challenges.
  • Phase 1 is currently estimated at $600 million and has a target completion date of 2030.
• Announced on February 24, 2026, Phase 2 builds on the accelerated progress of the first phase:
  • Construction of primarily one and two-bedroom unit apartment buildings is planned at 25 locations, including approximately 280 units in Ottawa.
  • The five locations with the largest planned growth are Valcartier, Quebec, Petawawa, Ontario and Edmonton, Alberta, with over 1,000 new housing units each; Kingston, Ontario, with over 900 housing units, and Gagetown, New Brunswick, with over 500 housing units.
  • To enable this work, Defence Construction Canada issued an advanced procurement notice for potential projects valued at approximately $3.74 billion.
  • It is estimated that Phase 2 will be completed by 2034.
• The program aims to:
  • Support Indigenous employment, business growth and long-term economic reconciliation through mandatory procurement targets and site-specific Indigenous Benefits Plans aiming to exceed the mandatory 5% of the program's contracting value to Indigenous businesses.
  • Advance the federal commitment to net-zero, climate-resilient and energy-efficient infrastructure.
  • Support substantial labour demand nationwide and drive procurement of Canadian materials, such as steel, lumber, concrete, and mechanical and electrical systems.
• Together, Phases 1 and 2 will deliver up to 7,500 new builds in 25 locations nationally.

Disclaimer: Data will fluctuate as studies, design, construction and other residential housing programs. In some locations, overplanning was built-in to manage delivery risk and provide flexibility as projects advance.

Military Housing Investments

• Investments under Our North, Strong and Free are enabling National Defence to construct approximately 800 residential housing units by Fiscal Year 2029-30 in Gagetown, Halifax, Valcartier, Trenton, Kingston, Petawawa, Borden, Edmonton, and Esquimalt.
  • Upcoming work: Further design and construction contracts are expected to be tendered and awarded in Edmonton, Petawawa, Kingston, Trenton, and Valcartier in early Fiscal Year 2026-27.
  • March 2026: Acquisition of a new $60 million apartment complex providing 140 additional housing units for CAF members posted to Halifax (occupancy expected fall 2026).
  • February 2026: Iron Maple Constructors Inc. awarded a $27.1 million contract to construct eight six-unit apartment buildings in Halifax.
  • December 2025: Quad Pro Construction Inc. awarded a $25.6 million contract to construct eight six-unit apartment buildings in Borden.
  • December 2025: Acquisition of a $19.1 million, 52-unit apartment building in Courtenay, BC to house CAF members posted to 19 Wing Comox.
  • October 2025: $5.1 million construction contract awarded to Nova Construction for two six-unit apartment buildings in Valcartier.
  • October 2025: National Defence acquired a newly constructed privately developed apartment complex near Esquimalt for $23.3 million, providing 37 move-in-ready units.
  • June and September 2025: Republic Architecture Inc. awarded design contracts in Edmonton for two six-unit apartment buildings ($200K) and five four-unit row houses ($100,000).
  • April 2025: Construction of two six-unit apartment buildings in Kingston awarded to DC&F Corp, with completion planned for FY 2026-27.
  • March 2025: Design phase of a Modified Design-Build contract in Esquimalt awarded to Pomerleau Inc. ($2.2 million) to design 244 new units.
  • March 2025: Design phase of a Modified Design-Build contract in Gagetown awarded to Pomerleau Inc. ($855,000) to design 40 units across 12-unit buildings.
  • February 2025: Design phase of a Modified Design-Build contract awarded to Bird Construction Group Ltd. ($4.8 million) for 200 units across Borden, Kingston, and Petawawa.
  • Spring 2024: Construction began on six net-zero-ready buildings in Edmonton (36 units) under a $19 million contract with Bird Construction Group Ltd., the first residential net-zero-ready buildings in the federal government.

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 would explore 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".
• Modern Methods of Construction: The Canadian Forces Housing Agency is collaborating with Build Canada Homes to support housing delivery by leveraging modern methods of construction.
• National Defence is exploring the benefits of modular and prefab construction. These benefits may include:
  • Higher quality construction (a controlled factory environment);
  • Faster on-site assembly than conventional construction;
  • Ability to manufacture housing all year round; and
  • Ability to deliver scale projects in markets with limited access to trades and construction expertise.

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

• On September 26, 2025, Bill C-11, a reintroduction of former C-66, was tabled to amend the National Defence Act (NDA).
• Key areas of the proposed legislation included:
  • Removing the Canadian Armed Forces' (CAF) authority to investigate and prosecute Criminal Code sexual offences committed in Canada (Recommendation 5 of the former Supreme Court Justice Louise Arbour Report), with such cases instead being transferred to and addressed by the civilian justice system;
  • Making amendments to the NDA modifying the appointment process for the Director of Military Prosecutions, the Director of Defence Counsel Services, and the Canadian Forces Provost Marshal (Recommendations from former Supreme Court Justice Morris J. Fish);
  • Excluding military judges from the summary hearing system and expanding access to Victim's Liaison Officers; and
  • Amending the NDA to align sex offender information and publication ban provisions with the amendments made in An Act to amend the Criminal Code, the Sex Offender Information Registration Act and the International Transfer of Offenders Act.
• The Standing Committee on National Defence (NDDN) undertook six meetings with witnesses and three meetings to complete its clause-by-clause review of Bill C-11.
• Key amendments passed by NDDN seek to retain concurrent military and civilian jurisdiction over the investigation and prosecution of Criminal Code Sexual Offences in Canada, give victims a choice over the system in which their cases are prosecuted, and change the appointment process and tenure in position of key actors in the military justice system.
• NDDN reported an amended Bill C-11 to the House of Commons on February 9, 2026.

Reintroduction of Former Bill C-66

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

Details of Bill C-11 at Introduction

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

Amendments Made During Committee Study

• The amendments to Bill C-11 passed at the Standing Committee of National Defence (NDDN) fall into two broad categories.
  1. First, the provisions of Bill C-11 that initially sought to remove military jurisdiction over Criminal Code Sexual Offences were amended. The amended Bill now retains concurrent military and civilian jurisdiction over investigation and prosecution, and to give victims greater choice regarding the forum of the proceedings (clauses 7 and 8 of the amended Bill).
  2. Second, a series of additional amendments related to the military justice system and key actors within it. Among others, these include:
     • Amendments to the tenure and training of military judges (clauses 9 and 18), which risk constitutional challenges;
     • Extending defence counsel services to members charged with Criminal Code sexual offences in the civilian justice system and, possibly, at summary hearings (clause 40.1); and
     • Extending defence counsel services to members charged with Criminal Code sexual offences in the civilian system and, possibly, at summary hearings (clause 40.1);
     • Removing Judge Advocate General supervision of the Director of Defence Counsel Services (clause 40.1).

During the NDDN's clause-by-clause review, members raised concerns about the constitutionality of certain amendments, their potential negative impact on the functioning of the military justice system, and the possibility that retaining concurrent military and civilian jurisdiction could harm victims through delays or legal uncertainty.

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 a continuum of trauma-informed, confidential support services and trusted resources.
• Over the past decade, the SMSRC's services, programs and initiatives have evolved to meet the needs of the wider Defence community. The SMSRC provides immediate assistance through the 24/7 Support Line, as well as ongoing case management and advocacy through the Response and Support Coordination Program. Survivors can also access peer connection, independent legal assistance, and community-based services funded through the Community Support for Sexual Misconduct Survivors Grant Program.
• In September 2025, the SMSRC expanded services to members of the Canadian Coast Guard.