Appearance Before the Standing Senate Committee on National Security, Defence and Veterans Affairs  (SECD): Mandate, Priorities, and NATO 2% - 27 April 2026 

• On 26 March 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 6^th 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 announced over $9 billion in defence investments to position Canada to meet its 2% Gross Domestic Product (GDP) target to the North Atlantic Treaty Organization (NATO).
• Budget 2025 included $81.8 billion over five years on defence, including $17.9 billion to expand military capabilities, and $19 billion to repair and sustain capabilities and invest in defence infrastructure.

Areas of Defence Investment and Notable Initiatives

• Improving serviceability and operational readiness, resulting in higher equipment availability and improved Canadian Armed Forces (CAF) readiness. This includes:
  • Eight ammunition depot projects advanced since fall 2025;
  • More than $8 billion nationwide in active infrastructure investments;
  • $60 million to acquire a 140-unit apartment complex in Dartmouth, Nova Scotia; and
  • $82.5 million to acquire the 475-acre Halifax Gate property.
• Delivering new military capabilities, resulting in faster delivery to address evolving threats. This includes:
  • $200 million domestic investment in Space Launch capability;
  • $307 million contract to Colt Canada for the Canadian Modular Assault Rifle Initiative; and
  • $118 million contract to deliver advanced digital periscopes to the Victoria-class submarine.
• Strengthening Canada’s economy and defence industry, resulting in a more resilient, competitive, and sovereign defence industrial base built in Canada. This includes:
  • $6.6 billion over five years ($2.1 billion in fiscal year 2025-26) for Canada’s defence industry through the Defence Industrial Strategy;
  • $1.4 billion investment for the Canadian Defence Industry Resilience Program;
  • $379.2 million to establish the new Regional Defence Investment Initiative;
  • $241 million for the Industrial Research Assistance Program’s new Defence Industry Assist initiative;
  • $92 million to launch Phase 1 of the Canadian Quantum Champions Program; and
  • $29.4 million to establish the Maritime Defence Innovation Secure Hub.
• Rebuilding the Defence Team, resulting in strengthened defence readiness by a renewed military and civilian capacity. This includes:
  • $2.1 billion CAF pay increase, the largest in a generation;
  • $3.7 billion for military housing through the National Housing Construction Program;
  • 7,000 Regular Force recruits targeted (fiscal year 2025-26);
  • 3,200 new Reserve enrollments (fiscal year 2025-26); and
  • 2,284 net new Defence Team civilian hires.
• Securing Canada and the arctic, resulting in enhanced arctic sovereignty and operational reach. This includes:
  • Progress on Arctic Over-the-Horizon Radar;
  • Ongoing North American Aerospace Defense Command modernization with the United States; and
  • 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 25 June 2025, Canada and its NATO Allies agreed to a new Defence Investment Pledge of 5% annual GDP by 2035.
• As part of this 5% pledge, Canada will invest 3.5% of GDP for core defence expenditures, which includes strengthening the foundation of National Defence through investments in our people, capabilities, infrastructure, and digital capabilities.
• The remaining 1.5% of GDP will be dedicated to investments in critical defence and security- related expenditures, which will – among other things – protect our critical infrastructure, defend our networks, unleash innovation, and strengthen our defence industrial base.

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

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

Parliamentary Budget Officer (PBO) Report (2026)

• On 5 February 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 Five Pillars of the Defence Industrial Strategy (DIS)

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

Anticipated Benefits of Implementing the Defence Industrial Strategy

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

Key Sovereign Capabilities – 10 priority areas for investment

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

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

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

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

Space Launch: $182.6 million over three years

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

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

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

Budget 2025

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

Post-Budget Announcements

• Since the release of Budget 2025, notable investments announced by the Government include:
  • $528.5 million for the European Space Agency to promote Canadian space technology innovation and access to the European market.
  • $244.2 million over three years for NRC to stand up a Defence Industry Assist Program that will provide funding and advice to high-potential, innovative Canadian small and medium-sized enterprises.
  • $379.2 million over three years to the federal regional development agencies for a new Regional Defence Investment Initiative to help integrate small and medium-sized enterprises into domestic and international defence supply chains, enhance industrial and innovation capacity, and foster regional economic development.

2022 Canadian Defence Industry Key Figures^{Footnote *}

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

• Since February 2022, Canada has committed $8.5 billion in military assistance to Ukraine.
• Canada committed $2.42 billion in military assistance to Ukraine in FY 2025-26. This includes the following allocations announced by Prime Minister Carney on 24 August 2025, to mark the 34^th anniversary of Ukraine’s independence:
  • Approximately $835 million to procure critical capabilities, including armoured vehicles, medical equipment, spare parts, small arms, ammunition, explosives, and drone capabilities;
  • Approximately $500 million in United States (U.S.) dollars to purchase a package of U.S. capabilities under the Prioritised Ukraine Requirements List Initiative, including ammunition and air defence capabilities;
  • $220 million to purchase drone, counter-drone and electronic warfare capabilities;
  • $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.

Latest Projects/Announcements

• On 24 February 2026, marking the fourth anniversary of Russia’s invasion of Ukraine, the Minister of National Defence announced military assistance that responds directly to operational requirements on the battlefield. This includes:
  • An additional $300 million, bringing Canada’s military assistance to about $2 billion for fiscal year 2026–27; and
  • The donation of more than 400 armoured vehicles, including 66 Canadian made Light Armoured Vehicles 6s (LAV 6s) and 383 Senator armoured vehicles.
• On 12 February 2026, at the 33^rd Ukraine Defense Contact Group meeting, the Minister of National Defence provided updates on recent military assistance, including that Canada is providing $45 million worth of critical medical supplies—mainly, Resuscitative Endovascular Balloon Occlusion of the Aorta catheters and ancillaries, combat medical kits, and consumables. These donations are built on previous donations of medical equipment and will also support Canadian Armed Forces (CAF) medical training under Operation UNIFIER.
• On 3 December 2025, the Minister of National Defence announced that Canada would purchase a package of critical military capabilities sourced from the United States under the North Atlantic Treaty Organization’s (NATO) Prioritised Ukraine Requirements List (PURL), in partnership with NATO Allies. Canada’s contribution to this PURL package was $200 million USD of the $500 million USD total. As of December 2025, Canada’s support through PURL totalled about $892 million, with another $50 million committed through the Danish Model.
• On 24 August 2025, Prime Minister Carney announced 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 from Colt Canada. 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.

Ukraine Defense Contact Group

• Co chaired by the United Kingdom and Germany, the Ukraine Defense Contact Group (UDCG) brings together more than 50 countries to identify Ukraine’s priority equipment needs, coordinate donation support, and strengthen 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

• Canada joined the Air Force Coalition due to its niche capabilities in pilot training and 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. This commitment includes the delivery of Fighter Lead-In Training for Ukrainian F-16 pilots in Canada, as well as equipment to support Ukraine’s safe operation of F-16s and other aircraft.

Armour Capability Coalition

• Canada joined the Armour Capability Coalition due to its industry expertise and previous donations to Ukraine, including 39 armoured combat support vehicles. Canada has also donated hundreds of armoured vehicles to date and 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

• 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. Canada has committed $87 million to Drone Capability Coalition projects aimed at bolstering Ukraine’s drone capabilities. The Drone Coalition is comprised of four working groups. Canada co-leads the Joint Venture Working Group with Latvia, where we are working to coordinate opportunities for partnership between Canadian and other Drone Coalition nations’ companies with Ukrainian industry.

Information Technology Capability Coalition

• Canada joined the Information Technology Capability Coalition (ITCC) to bolster Ukraine’s Information Technology (IT) and cyber security capabilities. Under the ITCC, Canada leads the Cyber Security Working Group and has contributed a total of $8 million to support critical procurement and capacity building activities since 2024. This includes financial contributions to the ITCC Common Fund, urgent software licenses, as well as the delivery of cyber security certification training to over 1,200 members of the AFU.

Donations to Armed Forces of Ukraine

• General Dynamics Ordnance and Tactical Systems (GD OTS) contract ($399M): Canada has a $399 million contract with GD OTS to supply ammunition to Ukraine. Between December 2026 and 2029, Ukraine will receive more than 39 million rounds of ammunition.
• Canada’s order will allow GD OTS to upgrade its facilities, improve equipment, and hire 48 new employees. These improvements will increase production, reduce costs, and help the company better support future orders for the Canadian Armed Forces.
• LAV 6s General Dynamics Land Systems contract ($575M): Donation of 66 Armoured Personnel Carriers to enhance protected troop movement and deliver effective direct-fire capability with the 25 mm cannon.
• Roshel Armoured Vehicles contract ($200 million): A total of 383 Senator armoured vehicles manufactured by Roshel and the first 108 which will be delivered by mid-May.
• Ecopia contract ($30 million): Having worked with National Defence’s Innovation for Defence Excellence and Security program since 2018, Ecopia produces Artificial Intelligence (AI)-generated 3-dimensional maps that will augment the capabilities of the AFU. Covering over 1 million square kilometers, Ecopia’s solution will greatly enhance AFU’s situational awareness and targeting ability.
• Medical Supplies ($45 million): Donation of life-saving, front line medical supplies such as equipment to control hemorrhaging, portable ventilators pulled from Public Health Agency of Canada warehouses, as well as combat medical bags that leverage the same companies providing Operation UNIFIER’s medical equipment for training.
• Wescam contract ($15 million): Canada helped set up a repair centre so Ukrainian forces can fix and maintain the Canadian made turrets that have been donated to Ukraine. This ensures the equipment can stay in service and be used safely and effectively.
• Cyber Security Training ($2.7 million): An online training course for 1200 AFU personnel that will enhance the AFU's cyber resilience and capacity, while ensuring improved interoperability with the Alliance.

Donations to Armed Forces of Ukraine – Through International Trust Funds

• Prioritized Ukraine Requirements List ($891 million): Critical military equipment, including Air Defence from the United States.
• Drone Capability Coalition ($82 million): Canada is funding two drone projects. One project provides low cost drones that can find and identify targets using artificial intelligence and can fly on their own. The second project provides interceptor drones that can detect and strike targets at distances of up to 40 kilometres, even where electronic jamming is present.
• Czech Ammunition Initiative ($140 million): Through the Czech Ammunition Initiative, Canada provided $140 million to buy artillery ammunition for Ukraine. This included about 10,000 rounds of 155mm shells and over 5,000 rounds of 122mm shells, which are used to hit large areas and destroy defensive positions. More ammunition may be delivered if funds remain at the end of the year.
• Canada also provided military equipment from its own stockpiles. In fiscal year 2025–26, Canada delivered almost $175 million worth of surplus equipment, along with $12 million of equipment approved under a special Order in Council.
• This equipment included ammunition and supplies, such as 2,000 rounds of 84mm ammunition and 400,000 infantry munitions, as well as surplus items like rocket motors, winter boots, and armoured vehicle chassis provided for spare parts and repairs.

Canada – European Union (EU) Security and Defence Partnership

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

Security Action for Europe (SAFE)

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

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

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

Canada-France Feuille de Route

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

Canada-Netherlands Joint Vision Statement

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

Canada’s Indo-Pacific Strategy

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

Operation HORIZON

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

Operation NEON

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

Funding for Bilateral and Multilateral Exercises

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

Status of Visiting Forces Agreement (SOVFA)

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

Security and Defence Cooperation Partnership (SDCP)

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

Enhancing Defence Industrial Relations with the European Union (EU)

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

Participation in Indo-Pacific Exercises and Activities

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

Defence Materiel Cooperation in the Indo-Pacific

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

Cyber Cooperation in the Indo-Pacific

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

Indo-Pacific Regional Training and Capacity Building

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

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

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

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

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

Defending, Building, and Transforming the North

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

CAF Contribution to the North American Aerospace Defense Command

• Canada contributes fighter aircraft, bases, air-to-air refuelers, Forward/Deployed Operating Locations, and approximately 1,000 personnel in support of the NORAD mission throughout North America.
• Canada manages and operates the Canadian portion of the North Warning System (NWS), a chain of radar stations stretching from Alaska to Labrador. An Inuit majority-owned company, Nasittuq, is under contract to assist with the management of the 47 Canadian NWS radar sites.
• Canadian NORAD Region headquarters in Winnipeg, Manitoba, provides operational control of assets assigned to NORAD in Canadian airspace.
• The Canadian Air Defence Sector in North Bay, Ontario, provides tactical command and control of assets in the Canadian Sector 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.

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

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

Industry Benefits for A-OTHR

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

A-OTHR Siting and Public Reaction

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

Strategic Tanker Transport Capability Project

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

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 18 March 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 12 March 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 6 March 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 18 March 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 18 March 2025, the Prime Minister announced Canada’s intention to partner with the Government of Australia on advanced A-OTHR technology.
• On 20 June 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 8 March 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 Offshore Patrol Ships (AOPS)
  • Two Arctic 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 26 March 2026) expands the CCG’s services to include security activities. This change, alongside further investments, will enhance Arctic Maritime Domain Awareness, improve intelligence, surveillance, and reconnaissance capabilities, and enable Arctic security patrols and interoperability with defence and security partners.

International Cooperation

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

Arctic Infrastructure Fund – Defence perspective

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

United Nations (UN) Security Council Resolution 2817

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

Joint Statement Regarding Strait of Hormuz

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

Statement Regarding Leader’s Call

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

Budget: $27.7 billion

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

Timeline

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

CF-18 Hornets

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

Supplementary Estimates (C)

• Supplementary Estimates (C) included $8.5 million to enable Canada to meet its mandatory in-Service Support financial commitments, including payments required under the F-35 Memorandum of Understanding (MOU) with the United States (U.S.) Government.
• These commitments cover sustainment services such as non-recurring engineering work for aircraft and propulsion system modifications, software updates, and technical data management.

Supplementary Estimates (B)

• Supplementary Estimates (B) included $476 million for the Future Fighter Capability Project to fulfill financial commitments, including payments under the F-35 MOU with the U.S. Government, which was reprofiled from future years.

F-35 Procurement Review

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

Fleet Replacement

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

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

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

Economic Benefits

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

Canadian Patrol Submarine Project

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

Victoria-class Modernization

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

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

Victoria-class Modernization (VCM)

• The VCM project is focused primarily on enhancing 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 His Majesty’s Canadian Ship (HMCS) Victoria and HMCS Windsor during their ongoing Work Periods.
    • HMCS Corner Brook will have these changes implemented at its mid-cycle Docking Work Period scheduled for 2030.
    • These updates are expected to be completed on all three platforms in the early 2030s.
• Joint Force Capability – to position the Victoria-class submarines to contribute meaningfully to joint operations ashore, including by making them less likely to be detected and by increasing their ability to conduct intelligence, surveillance and reconnaissance missions.
• 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.

Victoria In Service Support Contract

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

River-class Destroyer

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

Project Status:

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

Economic Benefits:

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

Joint Support Ships

Budget: Up to $6.09 billion

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

Arctic Offshore Patrol Ships

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

• All six Arctic Offshore Patrol Ships (AOPS) have been delivered to the Royal Canadian Navy.
• The ships have been deployed on Operations CARIBBE, HORIZON and NANOOK, have circumnavigated North America, deployed to Antarctica, and supported Canadians at home under Operation LENTUS.
  • AOPS can operate unescorted in up to one meter of first-year ice, consistent with Arctic ice conditions between June and October.
• The ships are strengthening the Canadian Armed Forces’ presence in the North, including operations in Canada’s exclusive economic zone along the Northwest Passage.
• AOPS also enhance Canada’s presence on the Atlantic and Pacific and support a wide range of international operations. Note: Some cost figures may include employee benefit costs. For this reason, totals may differ slightly from figures shown in other government financial documents.

River-class Destroyer

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

Joint Support Ships

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

Small Vessel Fleet

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

Revitalized Shipbuilding Sector

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

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

Vancouver Shipyards

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

Chantier Davie Canada Inc. (CDCI)

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

Irving Shipbuilding Inc. (ISI)

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

Small Vessel Fleet

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

Additional Initiatives

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

Domestic Production and the Munitions Supply Program (MSP)

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

Munitions Supply Program (MSP)

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

Canadian Defence Industry Resilience (CDIR) Program

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

Other Recent Investments and Production Initiatives

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

Current Domestic Capacity and Limitations

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

NATO Air Battle Decisive Munitions (ABDM) Framework

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

Role of Research and Development

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

Domestic Arctic Mobility Enhancement (DAME)

• Supplementary Estimates (C) allocated $900,000 to DAME project through the Capital Investment Fund.
• Procurement will be managed by the Defence Investment Agency to support faster and more streamlined defence acquisitions.
• Initial Operating Capability is planned for 2030-2031, with Full Operating Capability planned for 2031-2032.

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

• HIMARS is produced by Lockheed Martin Missiles and Fire Control. It is not commercially available and can only be acquired through the United States’ (U.S.) Foreign Military Sales (FMS) program.
• The sale includes 26 HIMARS launchers, various long-range missiles and training rockets, initial spares, training, and support services.
• Cost: Up to $2.62 billion.

Domestic Arctic Mobility Enhancement (DAME)

• The DAME project will provide the Canadian Armed Forces with a modern, Arctic‑capable platform able to operate year‑round, independently, and for extended periods across snow, ice, and complex terrain.
• It will replace the current BV206 fleet with a new Arctic mobility capability consisting of a fleet of medium-sized, amphibious, high mobility carriers.
• The project intends to deliver up to 170 vehicles in four variants: Command Post, Troop Carrying, Cargo and Equipment Carrying, and Ambulance. It includes a quantity of trailers proportional to the support needs of the fleet.
• A Request for Information closed on 25 September 2025.
• In February 2026, the Ottawa Citizen reported that the publicly posted budget estimate for the DAME project had increased from up to $249 million to up to $1 billion, compared to earlier preliminary figures shared with industry less than a year earlier.

Long Range Precision Strike (Land) Overview

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

Timeline for HIMARS

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

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 1 May 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 24 February 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 announced a 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.

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.

Canadian Coast Guard Real Property Portfolio Overview

• More than 17,000 hectares of land and a broad, highly specialized, and complex real property portfolio is being transferred to National Defence with the integration of the Canadian Coast Guard.

Budget 2025

• Budget 2025 provided $19 billion over five years to repair and sustain Canadian Armed Forces capabilities and invest in defence infrastructure, including expanding ammunition and training infrastructure.

Our North, Strong and Free

• Our North, Strong and Free committed to investing $10.2 billion (on an accrual basis) 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: design phase of the $188 million Combatant Training and Integration Centre at CFB Halifax. Once complete, this facility will house cutting-edge training systems for River-class destroyer operations.
• Defence Research and Development Canada Suffield: design phase of the combined Modernize Chemical and Biological Facilities and Neurobehavioral Blast Research Facility projects for a value of $761 million. This project will support ongoing and future research activities on chemical and biological threats, including improving blast protection and blast treatment for personnel.
• CFB Esquimalt: construction phase of the ongoing $1.1 billion A/B Jetty Recapitalization Project to support new fleets built through the National Shipbuilding Strategy. Work this year 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 facility enables the unit to continue to meet the demands of domestic and expeditionary crisis response.
• CFB Bagotville and Cold Lake: infrastructure modernization related to the F-35 fleet, including new hangarettes, warehousing, firehalls and Quick Reaction Alert hangars, with associated airfield support upgrades required for next generation fighter operations.
  • Bagotville will soon be constructing a Mess/Dining/Accommodation facility valued at over $180 million and a new $131 million 2 Wing Air Force Expeditionary Capability Headquarters.
  • Cold Lake is constructing a new Fighter Squadron Facility that will support daily operations, maintenance, and simulator training for two tactical fighter squadrons.
• CFB Trenton: construction to support the Strategic Tanker Transport Capability program, including a new hangar, fuel depot, training facility, ramp expansion, and runway/apron resurfacing.
• CFB Moose Jaw: infrastructure modernization to support the $11.2 billion Future Aircrew Training Program, which will deliver new training, simulation, and aircraft maintenance facilities, including a multi building campus with classrooms, simulators, hangars, workshops, and support spaces.
• CFB Greenwood and Comox: infrastructure projects to support the Canadian Multi-Mission Aircraft program, including work on hangars and runways.
• Yellowknife: construction of the $136 million Yellowknife Multipurpose Facility, expected to be completed in the winter of fiscal year 2026-27, will create a new headquarters for the 1st Canadian Rangers Patrol Group, along with elements of Joint Task Force (North).

Infrastructure Modernization and Maintenance

• A large share of the real property portfolio is outdated and no longer aligned with modern operational demands. Many of these assets are approaching end of life and are projected to reach “critical” condition by 2030.
• The condition of the portfolio is aligned with the overall Government of Canada real property 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.
• Additionally, due to climate change, 64% of National Defence assets are at a high or greater risk of failure by the 2050s.
• To address these issues, National Defence is investing $8.8 billion over 5 years (starting in fiscal year 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.
• 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 fiscal year 2023-24, National Defence achieved a 38% reduction in GHG emissions from its real property and conventional fleet compared to 2005 levels, placing the department within reach of its 40% reduction target for fiscal year 2024-25.
  • By 2030, National Defence’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 strengthen accountability, all new infrastructure projects will include energy performance targets in their design, and procurement will prioritize low carbon materials and sustainable products, from building materials to vehicle fleets.
  • Throughout this process, National Defence remains 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 fiscal year 2025-26, National Defence allocated over $327 million to minor capital projects for existing infrastructure. In addition to buildings and facilities, this included $47 million for municipal works projects, such as roads and utilities.
• The National Defence is collaborating closely with Shared Services Canada to ensure National Defence’s infrastructure is supported through the Network Modernization Project. Additionally, work is ongoing to enhance wireless solutions on bases and wings.

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 31 March 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 31 March 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 8 August 2025, the Prime Minister and the Minister of National Defence announced the following updates to CAF compensation measures:
  • Pay adjustment (retroactive to 1 April 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 14 November 2025.
  • Military Service Pay (retroactive to 1 April 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 1 November 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 1 January 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 1 April 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 1 April 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 1 April 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 1 November 2025, the Critical Occupation Recruitment Allowance applies to new recruits in Non-Commissioned Member trades where trained strength is below 76% of authorized levels. The allowance is not retroactive and is paid in three instalments: upon completion of basic training, upon achieving trade qualification, and after six years of service with a commitment to serve an additional three years.

Cost-of-Living Supports – Childcare

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

Cost-of-Living Supports – Housing

• Budget 2024 announced a total investment of $1.4 billion to build 1,400 homes and renovate 2,500 existing units.
• The first phase of the Canadian Forces Housing Agency Construction Program, launched in fiscal year 2024-25, is delivering over 800 new units in nine locations experiencing significant housing pressures. These are Gagetown, Halifax, Valcartier, Trenton, Kingston, Petawawa, Borden, Edmonton, and Esquimalt; locations with the highest number of CAF entrants, members on long-term training and private sector market challenges.
• Announced on 24 February 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.

Readiness

• The core components of readiness include personnel, equipment, training, and sustainment.

Readiness Levels

• The 2024-25 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 2023-24.
• The 2025-26 Departmental Plan’s target is for at least 90% of force elements to be ready for operations by 2032.

Chief of the Defence Staff/Deputy Minister Directive for Canadian Armed Forces (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.
 (CDS/DM Directive for CAF Force Posture and Readiness (FP&R) 2024/2025)
• FP&R Improvements: The FP&R Framework is being reinvigorated via an internal campaign plan comprising 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.

Canadian Coast Guard

• The Canadian Coast Guard (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; and
  • Support to other government departments.
• The CCG has approximately 6,700 employees and is organized into four regions:
  • Western - approximately 1,220 employees;
  • Central - approximately 1,600 employees;
  • Atlantic - approximately 2,220 employees; and
  • Arctic - approximately 100 employees.
  • In addition, a national headquarters in Ottawa provides functional leadership (1,560 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; and
  • 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; and
  • Environmental response depots and caches.

Transition to National Defence

• On 9 June 2025, it was announced that the Canadian Coast Guard (CCG) would be integrated into the Defence portfolio. The transfer became effective on 2 September 2025, through an Order in Council. On 10 October 2025, the Minister of National Defence formally welcomed the CCG to the Defence Team at a ceremony in Dartmouth, Nova Scotia.
• The full transition of asset ownership is taking place. The Department of National Defence (DND) and the Department of Fisheries and Oceans (DFO) have established a memorandum of understanding that ensures continuity of operations in the interim.
• As part of CCG’s transition, the CCG is finalizing the Special Operating Agency (SOA) Framework Agreement, which is the overarching policy document outlining how CCG will operate as a civilian SOA within DND. The Framework Agreement reflects the authorities and capabilities required for the CCG to operate as a robust SOA within DND, upholding its distinct operational and financial management systems, governance framework, accountability structures, and administrative autonomy, while aligning with DND’s departmental direction and common service requirements.
• On 1 April 2026, the transfer the Aircraft Services Directorate from Transport Canada to CCG was announced. The transfer gives the CCG operational command of helicopter and other aerial capabilities, access to surveillance assets and a fully functioning Intelligence, Surveillance, and Reconnaissance capability.

Expansion of the Canadian Coast Guard’s Security Role

• The Strengthening Canada’s Immigration System and Borders Act (Bill C-12, which received Royal Assent on 26 March 2026) amended the Oceans Act to expand the mandate of the CCG to include activities related to security and intelligence to protect Canada’s sovereignty and maritime interests. This new legislation formally integrates the CCG into Canada’s national security architecture and authorizes the responsible Minister to collect, analyze and disclose information and intelligence.
• These amendments enable the CCG to contribute more effectively to Canada’s security objectives by strengthening maritime domain awareness, supporting federal security partners, and contributing security-relevant information and intelligence.
• The CCG remains a civilian federal fleet. These amendments do not confer law enforcement powers on CCG personnel. The CCG will continue to support enforcement partners such as the Royal Canadian Mounted Police, Canada Border Services Agency, Fisheries and Oceans Canada Conservation and Protection, and the Canadian Armed Forces by providing maritime platforms, operational presence, and marine expertise.
• Maritime security activities are being integrated into existing CCG operations, including icebreaking, search and rescue, marine environmental and hazards response, and aids to navigation.

Structure

• The Canadian Army is restructuring into four integrated formations to enhance agility, scalability, and readiness.
  • 1^st Canadian Division will be headquartered in Edmonton, Alberta, and will focus on developing and maintaining the forces capable of operating across the spectrum of conflict to include Major Combat Operations.
  • The 2^nd Canadian Division will be headquartered in Montreal, Quebec, and as the primary force for domestic operations, will provide augmentation to expeditionary operations.
  • The Canadian Army Support Division will be headquartered in Kingston, Ontario, and will be the base of the Canadian Army’s institutional and base support backbone.
  • The Canadian Army Doctrine and Training Centre, will retain its headquarters in Kingston, Ontario and will continue to deliver individual and collective soldier training and preparing leaders through professional military education.

Force Size

• Current strength is approximately 22,000 Regular Force soldiers, approximately 20,000 in the Reserve Force, and nearly 5,000 Canadian Rangers, with room to grow. Investments will focus on people across the Regular Force, the Army Reserve, the Canadian Army Rangers, and the civilian workforce to build capacity and leadership.

Equipment Upgrades

• Near-term soldier equipment upgrades will include modular assault rifles, night vision devices, small drones, and improved operational clothing and personal equipment for comfort and performance.

Priority Capabilities

• Modernization includes nearly 50 major capital projects now underway across the Canadian Army:
  • Integrated command and control with computers, communications, cyber, intelligence, surveillance, reconnaissance, and targeting (C5ISRT)
  • Long Range Precision Strike (LRPS) capabilities
  • Ground Based Air Defence (GBAD) systems
  • Domestic Arctic Mobility Enhancement (DAME) platforms
  • Indirect Fires Modernization (IFM)
• A secure digital and data backbone will connect sensors, decision makers, and shooters to speed decision cycles and effects.
• Modernization supports strategic autonomy, industrial renewal, Canadian jobs and economic growth, enabled by planned defence spending increases including targets of 2% of gross domestic product in fiscal year 2025–26 and 5% by 2035.

Announcement and Timelines

• In August 2025, the Canadian Army set out a generational modernization and restructuring plan under Inflection Point 2025. In October 2025, the Army publicly outlined the initiative to transform for today’s volatile global security environment.
• In early 2026, a Canadian Army Modernization Order and Master Implementation Directives were issued to guide implementation across the force.
• The first tranche of organization changes took place on 1 April 2026, with the transfer of the Canadian Rangers Group from Canadian Army headquarters to the 2^nd Canadian Division. The four existing Divisional Training Centres were also moved under command of the Canadian Army Doctrine and Training Centre.
• The second tranche of changes will occur this summer over the Active Posting Season with the establishment of the following three organizations, the Light Infantry Regiment HQ, the 1^st Canadian Artillery Brigade HQ, and the 1^st Canadian Sustainment Brigade HQ.
• The third tranche will occur in September 2026 with transition from the current divisional structure to the new divisional structure under the 1^st and 2^nd Canadian Divisions, and the Canadian Army Support Division.

Why Change

• The world is less stable and more dangerous, with renewed state competition, climate pressures, and disruptive technologies reshaping warfare. Canada faces a higher risk of large scale conflict than at any time since the Cold War - the Army must be ready for major combat operations.
• Modernization concentrates support and training, builds division level competence, revitalizes sustainment at scale, and strengthens readiness and mobilization. It advances networked sensors and fires, modern command and control, layered protection, faster doctrine and experimentation, and a “One Army” culture that integrates Regular, Reserve, Canadian Rangers, and Defence civilians.

Transition and Implementation

• The Army will move from a brigade-centric force to a division-capable land force to deliver agile and scalable combat power at home and abroad. The structure shifts from regional alignment to a functional model to improve readiness, sustainment, and interoperability with allies and partners.
• Operational leadership will shift to the divisional level, while the Canadian Army Headquarters will focus on developing the future force, better anticipating mission surge requirements and support operations with enhanced capabilities, while considering long-term impacts.

Supplementary Estimates (C)

• Northern Operations: Total of $66.8 million to enable the continuation and expansion of activities and exercises in Canada’s Arctic region. Funding will secure and demonstrate sovereignty of Canada’s Arctic regions and support three Canadian Armed Forces (CAF) operations in the north: Operations NANOOK, LIMPID, and LATITUDE.

NORAD Operations

• Budgets for Canadian NORAD personnel and activities in the United States fall under the Vice-Chief of the Defence Staff or, for personnel and activities in Canada, the Royal Canadian Air Force. NORAD operations do not currently have separate funding envelopes like other CAF-named operations.
• NORAD operational authorities are enduring under the parameters of the NORAD Agreement.

Operation LENTUS

• Operation LENTUS is the Canadian Armed Forces (CAF) response to natural disasters in Canada. This operation follows an established plan of action to support communities in crisis. This plan can be adapted to multiple situations, such as forest fires, floods, ice storms, or hurricanes.
• Per the Federal Emergency Response Plan, the CAF provides assistance when a province or territory requests federal support to deal with an emergency and their own capacity to respond has been exceeded.
• Based on the request for assistance, the CAF determines how many members to send, as well as the types of assets required. In recent years, this has been anywhere from 7 to 2,600 members.
• The objectives of Operation LENTUS are to:
  • help provincial and territorial authorities;
  • respond quickly and effectively to the crisis; and
  • stabilize the natural disaster situation.

Northern 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, 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 the CAF’s permanent Arctic presence.
  • Operation LIMPID is a persistent surveillance and presence operation within the Canadian area of responsibility that enhances CAF domain awareness.
• On 18 March 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 the inclusion of 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 year-round military operation through Operation NANOOK and other exercises and training to assert Canada’s presence and sovereignty, as well as refine information-sharing processes.

Supplementary Estimates (C)

• Operations in the Middle East (Budget 2025): Total of $36.9 million to support the continuation of Operations ARTEMIS and IMPACT until the new Operation AMARNA can be fully implemented to strengthen peace and security in the Middle East. Canada maintaining its presence in the Middle East will be strategically important going forward as events continually evolve in the region.

Budget 2025

• Budget 2025 provided $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.
• Budget 2025 provided $2.7 billion over three years on a cash basis, starting in 2026-27, to the DND in support of the renewal of Operation REASSURANCE. It will remain the Canadian Armed Forces’ (CAF) largest overseas mission.

Operation REASSURANCE

• Under Operation REASSURANCE, the CAF has deployed:
  • A Land Task Force, including contributions to and leadership for the North Atlantic Treaty Organization (NATO) Multinational Brigade Latvia;
  • A Maritime Task Force, which contributes ships to the Standing 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 Cyber Task Force, conducting Joint Threat Hunt operations alongside the Cyber Incident Response Institution of the Republic of Latvia (CERT.LV). This initiative aims to bolster the defence of Latvian critical infrastructure against cyber threats.
• Canada has completed the full implementation of persistently deployed Brigade capabilities to Latvia. The Brigade now includes up to 2,200 CAF members as part of NATO’s Forward Land Forces and supporting elements in Latvia.
• In August 2025, Canada extended Operation REASSURANCE for another three years until March 2029.

Middle East

• The Canadian Armed Forces (CAF) remains involved in legacy United Nations, the North Atlantic Treaty Organization (NATO), and Multinational Forces and Observers (MFO) contributions in the area (Operations JADE, AMARNA, PROTEUS, FOUNDATION, and CALUMET) and other operations depending on necessity (Operations GLOBE and PRESENCE).
• An approximation of CAF personnel posted to Middle East operations as of 9 April 2026, can be found in the table below.

Multinational Brigade Latvia

• Established by the NATO in July 2024, Multinational Brigade Latvia brings together twelve contributing nations under a unified command structure.
• Today, the Brigade, which works in close cooperation with the Latvian National Armed Forces, includes personnel from: Albania, Canada, Czechia, Denmark, Italy, Montenegro, North Macedonia, Poland, Slovakia, Slovenia, Spain, and Sweden.
• As the Framework Nation, Canada is responsible for the coordination, 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 1 - 10 November 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 December 2025, the Air Task Force delivered approximately 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 four CH-146 Griffon helicopters.
• In July 2025, the CAF stood up a Tactical Aviation Battalion in Latvia, which consisted of two CH-147 Chinook heavy-lift, multi-mission helicopters, in addition to the four CH-146 Griffons. The Chinooks provided increased troop transport and cargo delivery capabilities. The Battalion headquarters 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 CAF has deployed a warship on a near 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 in the Mediterranean Joint Operations Area, then transferred to Standing NATO Maritime Group One (SNMG1) until the end of its deployment in mid-December. From July to December 2024, HMCS Charlottetown commanded SNMG2.
• 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.

Exercise FORMIDABLE SHIELD 25

• HMCS Montréal participated in Exercise FORMIDABLE SHIELD 25 from 5 - 23 May 2025.
• This exercise focused on improving NATO’s collective ability to defend the Alliance’s warships in the face of any future missile and air defence scenarios.

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 most of its available vehicle replacement parts and consumables on Multinational Brigade Latvia. Deployed needs must be balanced against training and force generation needs in Canada, which periodically leads to shortages in theatre.

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.

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.
• Deliveries for Phase 1 (technical information for weapons certification) began in January 2026 with the first serial of Initial Cadre Training being completed in April 2026. The expected manufacturing or allotment of rounds is expected to begin in July 2026. Anticipated shipment/receipt of the rounds to begin in late 2026.
• For Phase 2, installation of the modifications for Tactical Armoured Patrol Vehicle (TAPV) Integration in 10 TAPVs is expected to be completed by January 2029.
• 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.
  • Most 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 winter 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

• Operation UNIFIER is the military training, and capacity building mission of the Canadian Armed Forces (CAF) for Ukraine. It was launched in 2015, at the request of the Ukrainian government following the illegal annexation of Crimea and has evolved over time to meet Ukraine’s evolving needs, particularly following Russia’ illegal and unprovoked full-scale invasion in 2022.

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 2025, the Military Training Cooperation Program (MTCP) has managed an annual funding envelope of $18 million in contributions for Defence Institution Building and Defence Capacity Building initiatives in Ukraine.

Cyber Defence Support

• Since the beginning of the conflict, at the request of the Ukrainian MoD, the CAF 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 and welcomed the signing of a Letter of Intent between the Department of National Defence and Ukrainian Ministry of Defence to co-produce defence materials in both countries.

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

• On 26 September 2025, Bill C-11, a reintroduction of former C-66, was tabled to amend the National Defence Act (NDA).
• Key areas of the proposed legislation included:
  • Removing the Canadian Armed Forces’ authority to investigate and prosecute Criminal Code sexual offences committed in Canada (Recommendation 5 of the 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 9 February 2026.

Reintroduction of Former Bill C-66

• On 26 September 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.

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 7 March 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 5 November 2025 (published on 20 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, 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 5 February 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 9 December 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.

Northern Engagement and Operational Support Hubs

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

National Defence’s Indigenous Reconciliation Program

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

Canadian Coast Guard – Indigenous Relations Program

• Within the Canadian Coast Guard (CCG) operational environment, the Indigenous Relations Program provides strategic, operations-informed advice on First Nations, Métis, and Inuit rights and interests.
• The program ensures CCG adherence to historic and modern treaties, and supports the upholding of Crown obligations, including the Duty to Consult.

Indigenous Representation in the Canadian Armed Forces

• As of 31 December 2025:
  • 2.8% of the Regular Force and Primary Reserve self-identified as Indigenous persons; with a target of reaching 3.5% by 31 March 2027.
  • 26.9% of Canadian Rangers self-identify as First Nations, Inuit, and Métis peoples.
• National Defence implements a broad range of proactive and targeted recruitment programs aimed at increasing the representation of Indigenous Peoples in the Canadian Armed Forces (CAF), including:
  • The CAF Indigenous Experience Program;
  • The Indigenous Leadership Opportunity Year at the Royal Military College; and
  • Primary Reserve Indigenous Summer Programs.
• These programs provide valuable pathways for Indigenous individuals to explore or begin military careers.
• The programs recorded an 81% graduation rate from 2022 to 2025.

Northern Engagement and Operational Support Hubs

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

Defence Industrial Strategy

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

Engagements

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

National Defence Engagement in the Atlantic and Eastern Region

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

National Defence Engagement in the Pacific and Western Region

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

• 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 includes:
  • foreign signals intelligence
  • cyber security and information assurance
  • active cyber operations
  • defensive cyber operations
  • technical and operational assistance to federal partners

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 CCDC helps critical infrastructure, businesses and Canadians benefit from shared intelligence and best practices, improving Canada’s ability to prevent and respond to cyber attacks and creating a safer digital landscape for Canadians.
• The Cyber Centre, as part of CSE, provides operational leadership within CCDC. It drives engagement with critical infrastructure operators and industry partners, shares actionable threat intelligence, and promotes best practices to strengthen Canada’s cyber resilience.
• CSE received funding of $4.1M in 2025-26 and $6.9M for 2026-27 for the implementation of CCDC.

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.

2025-26 CSE Spending to date towards NATO target

• As of 13 March 2026, CSE has spent $1.39B or 84% towards the 2% NATO target of $1.65B, which are CSE’s total authorities.
• CSE has spent $341.9M or 92% of the Supplementary Estimates A funding of $370.1M.
• CSE’s year-to-date spending level of 84% is consistent with historical trends. Due to the complex requirements and long lead times associated with specialized Digital and IT procurement, 60% of CSE’s operating expenditures typically occur in Q4.
• CSE has exercised on-ramps and is now forecasting to fully utilize allocated budgets this fiscal year.

Supplementary Estimates C

• Supplementary Estimates C (Supps C) 2025-26 were tabled in the House of Commons on 12 February 2026.
• National Defence requested $1 billion, which includes $560.9 million for projects in the Capital Investment Fund, $313.7 million for the Strategic Tanker Transport Capability Aircraft project and $127.3 million for the expansion of the Canadian Coast Guard’s security role.
• Treasury Board Secretariat requested $1 billion to accelerate expenditures relating to defence and national security.
• CSE’s 2025-26 Supps C represent a net funding decrease totaling ($448.5K) resulting from two interdepartmental transfers.
  • Transfer of ($23.5K) to the Global Affairs Canada (GAC) for Foreign Service Directives (FSDs); and
  • Transfer of ($425K) to the Treasury Board Secretariat (TBS) to support the Comptrollership Program.
• A listing of 'Frozen Allotments in Voted Authorities’ is also included in the final SEC page proofs and identifies a CSE transfer totaling ($22.5K) for the Communications Community Office.

Supplementary Estimates B

• Supplementary Estimates B (Supps B) 2025-26 were tabled in the House of Commons on 7 November 2025.
• In these Supps B, CSE requested a net funding increase of $70.0 million. Details below:
• 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:
  1. 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.
  2. Transfer of $6.5M from DND relating to the CSMI Phase 2B Project.
  3. Transfer of $2.9M from Shared Services Canada to support the Secure Communications for National Leadership program (SCNL).
     • This program provides 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.
  4. 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.
  5. Transfer of $493K to Royal Canadian Mounted Police for Law Enforcement Record Checks.
  6. 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.

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.