Government of Canada launches Regional Defence Investment Initiative in Northern Ontario and across the country
News release
New initiative will accelerate the integration of businesses into national and international defense supply chains.
December 12, 2025 – Thunder Bay, ON – Federal Economic Development Agency for Northern Ontario – FedNor
A strong defence industry is key to Canada’s national sovereignty and security as well as its economic resilience and long-term prosperity. That is why the Honourable Patty Hajdu, Minister of Jobs and Families and Minister Responsible for FedNor, today announced the launch of the Government of Canada’s Regional Defence Investment Initiative (RDII). This $357.7 million national initiative will be delivered by Canada’s Regional Development Agencies (RDAs) to support our country's defence needs while bolstering regional economic development. The RDII will be delivered in Northern Ontario by FedNor with an investment budget of $15.8 million over three years.
The RDII aims to accelerate the integration of businesses and regional ecosystems into domestic and international defence supply chains, and increase their industrial and innovation capacity. This includes investment in businesses whose products and services are dual-use and who wish to pivot their activities to supply the defence sector.
As announced in Budget 2025, the Government of Canada has already put into action initial investments to support Canada’s defence industrial base by allocating $6.6 billion over five years on a cash basis, starting in 2025-26 under the forthcoming Defence Industrial Strategy. These initial investments will drive research and innovation, strengthen domestic supply chains, grow critical resource stockpiles, and improve access to funds for Canadian small- and medium-sized defence businesses.
Through existing programs, expertise and on-the-ground presence, FedNor and RDAs across the country will be supporting the growth of the defence industrial ecosystem, strengthening the relationship between government and industry while also driving innovation, investment, good paying jobs and economic growth for all Canadians.
Quotes
“Over the next three years, the Regional Defence Investment Initiative will invest $15.8 million to help Northern Ontario businesses scale-up, modernize or pivot their operations so they can support Canada’s defence needs. Small- and medium-sized businesses are at the core of regional economic development and a key part of our government’s plan to build, protect and empower Canada. Through Regional Development Agencies, like FedNor, we are boosting investment in defence, increasing our industrial capacity and fueling innovation to generate long-term benefits for businesses, workers, families and the economy.”
- The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for FedNor
Quick facts
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The Regional Defence Investment Initiative (RDII) is one of several initial investments that will be part of Canada’s future Defence Industrial Strategy (DIS), a whole-of-government approach to building sovereign defence capacity and reinforcing industrial strength across the country.
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The funds have been granted under Canada’s Regional Economic Growth through Innovation program. This program targets entrepreneurs leveraging innovation to grow their businesses and enhance their competitiveness, as well as regional economic stakeholders helping to create an entrepreneurial environment conducive to innovation and growth for all, across all regions.
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By capitalizing on RDAs’ expertise in support of innovation and placed-based approach, the RDII will strengthen Canada’s defence industrial base in all regions of the country while helping Canada fulfil its defence spending commitment to NATO.
Associated links
Contacts
Jennifer Kozelj
Senior Communications Advisor and Press Secretary
Office of the Minister of Jobs and Families and Minister responsible for FedNor
jennifer.kozelj@labour-travail.gc.ca
Federal Economic Development Agency for Northern Ontario
Media Relations