Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news concerning Canada's national defence, cybersecurity, border security, weapons systems, military commitments, and the Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Every Monday, we break down the most important updates in this space in under five minutes.

Dates: 2025-06-08 to 2025-06-14

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📱 Public Officials' Social Media
• 📚 What We're Reading This Week

Canadian Federal GR News

Canada Commits Over $9 Billion to Defence Investments, Reaches NATO 2% Target

On June 9, 2025, Prime Minister Mark Carney and Defence Minister David McGuinty announced a major increase to Canada’s defence budget, raising spending by over $9 billion for fiscal year 2025-26. This injection brings national defence spending to 2% of gross domestic product, marking the fulfillment of NATO commitments five years ahead of schedule. Allocations include $2.6 billion for personnel recruitment and retention, aiming to bring the Canadian Armed Forces (CAF) up to 71,500 Regular and 30,000 Primary Reserve members by 2030. Equipment and infrastructure repair and sustainment will receive $844 million, with a focus on land, maritime, and aerospace fleets. Digital modernization, including cyber resilience and data security, is allocated $560 million. Military capability expansion and Arctic self-sufficiency initiatives will receive $1 billion, predominantly directed to Canadian suppliers. The plan also includes $2.1 billion for industry engagement as Canada lays groundwork for a comprehensive Defence Industrial Strategy, and $2 billion to diversify defence partnerships beyond the United States.

Sources: Announcements: www.canada.ca

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Defence Minister Responds to Auditor General’s Report on Fighter Jet Procurement

Following the Auditor General’s June 10, 2025, report on the Future Fighter Capability Project (FFCP), Defence Minister David McGuinty detailed actions to improve risk management and transparency in the acquisition of 88 new fighter jets. The FFCP’s cost has increased since initial estimates. The statement also confirmed the review of Canada’s defence procurement system, with an eye to streamlining internal processes and leveraging domestic industrial capacity. The FFCP is now the largest Royal Canadian Air Force investment since World War II, with a focus on meeting NORAD and NATO operational requirements.

Sources: Announcements: www.canada.ca

Commissioning of HMCS Frédérick Rolette Bolsters Arctic Naval Readiness

On June 13, 2025, the Royal Canadian Navy formally commissioned HMCS Frédérick Rolette, the fifth Harry DeWolf-class Arctic and Offshore Patrol Vessel, during a ceremony at the Port of Quebec. The new vessel joins the fleet as part of the National Shipbuilding Strategy, enhancing the Navy's ability to operate in Northern waters and enforce Canadian sovereignty. HMCS Frédérick Rolette is tailored for Arctic operations and is expected to play a central role in future northern deployments.

Sources: Announcements: www.canada.ca

Canada, US, and Finland Advance Icebreaker Collaboration for Arctic Operations

From June 11-12, 2025, representatives from Canada, Finland, and the United States met in Ottawa to advance the Icebreaker Collaboration Effort (ICE Pact). Discussions focused on technical expertise, workforce development, industry engagement, and research and development for Arctic and polar icebreakers. All three countries reviewed industry feedback collected through a Request for Information, setting the stage for further supply chain and shipyard engagement. Canadian industry, academia, and think tanks joined a roundtable, providing input on the ICE Pact’s strategic direction. The next trilateral meeting is scheduled for fall 2025 in the US.

Sources: Announcements: www.canada.ca

Multi-National Naval Exercise CUTLASS FURY 2025 Begins off Halifax

Exercise CUTLASS FURY 2025 commenced on June 9, 2025, off the coast of Halifax, Nova Scotia. The Canadian-led exercise includes joint CAF elements and allied forces from the United States, United Kingdom, and Denmark. The focus is on anti-submarine warfare and air-maritime integration, with the aim of enhancing interoperability and collective maritime defence capabilities.

Sources: Announcements: www.canada.ca

Transport Canada Releases Multimodal Safety and Security Oversight Data

Transport Canada’s Multimodal Safety and Security Programs Oversight Delivery Indicators were made available for Q3 and Q4 of the 2024/2025 fiscal year. The datasets provide oversight performance metrics for air, marine, and rail safety and security programs.

Sources: Open Government Data Set: www.statcan.gc.ca

Weekly Aircraft Movements Data Published for Late May 2025

Statistics Canada released weekly data on aircraft itinerant movements for the period May 24-30, 2025. The dataset covers major Canadian airports and supports industry monitoring of aviation activity.

Sources: Open Government Data Set: www.statcan.gc.ca

Government Schedules Technical Briefing on Defence and Security Priorities

On June 8, 2025, National Defence announced a technical briefing for media, held virtually the following day, to discuss current defence and security priorities. The session was intended for credentialed media and required pre-registration.

Sources: Announcements: www.canada.ca

US Federal GR News

White House Issues Executive Orders on Drones, Airspace Security, and Aviation Innovation

On June 11, 2025, President Trump signed executive orders to accelerate U.S. drone technology, secure national airspace, and enable advanced aviation platforms. Executive Order 14307 directs the FAA to propose rules for routine Beyond Visual Line of Sight (BVLOS) drone operations within 30 days and to update the UAS integration roadmap. A new pilot program for electric Vertical Takeoff and Landing (eVTOL) aircraft will launch, with at least five projects selected within 180 days. The order also prioritizes U.S.-manufactured drones for federal procurement and calls for regulatory review to expedite exports. Executive Order 14305 establishes a Federal Task Force to address UAS threats, mandates the FAA to finalize airspace restrictions for critical infrastructure, and expands real-time data sharing for drone identification. These initiatives are aimed at maintaining U.S. leadership in unmanned and advanced aviation systems.

Sources: White House Announcements: www.whitehouse.gov, U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov

USTR Seeks Comments on Section 301 Modifications Targeting Chinese Maritime and Shipbuilding Sectors

On June 12, 2025, the Office of the United States Trade Representative (USTR) announced a proposed modification to existing Section 301 measures addressing China’s maritime, logistics, and shipbuilding sectors. The proposal would adjust fee calculations for covered vessels in the Maritime Security Program, switch fee assessments to a net tonnage basis, and retroactively eliminate a provision suspending LNG export licenses. USTR is also seeking input on revised data reporting and application of restrictions to vessel owners or operators. The public comment period runs through July 7, 2025.

Sources: U.S. Federal Announcements: www.federalregister.gov

Department of Commerce Solicits Input on National Security Assessments of U.S. Industrial Base

The Bureau of Industry and Security (BIS) published a notice on June 13, 2025, inviting comments on its information collection activities related to National Security and Critical Technology Assessments of the U.S. Industrial Base. The collection supports benchmarking of critical sectors and is used by agencies including the Departments of Defense and Homeland Security. The public has until August 12, 2025, to submit feedback.

Sources: U.S. Federal Announcements: www.federalregister.gov

Navy Releases Draft SEIS/OEIS for Low-Frequency Array Sonar Training in Pacific and Indian Oceans

The Department of the Navy issued a Draft Supplemental Environmental Impact Statement (SEIS/OEIS) on June 13, 2025, for the Surveillance Towed Array Sensor System Low-Frequency Active (SURTASS LFA) sonar training and testing in the Western North Pacific and Indian Oceans. The document analyzes environmental impacts of sonar use, including on marine life, and outlines mitigation measures. Public comments are open until July 28, 2025, with virtual meetings scheduled for July 8 and 14.

Sources: U.S. Federal Announcements: www.federalregister.gov

Federal Acquisition Council Withdraws Multiple Proposed Rules Affecting Small Business and Procurement

On June 12, 2025, the Office of Federal Procurement Policy, along with the Departments of Defense, Energy, GSA, and NASA, announced the withdrawal of three proposed rules: Small Business Participation on Certain Multiple-Award Contracts, Protests of Orders Under Certain Multiple-Award Contracts, and changes to SBIR/STTR data rights. The withdrawals follow recent executive actions that rescinded earlier directives on equity and disadvantaged business contracting. The FAR Council will re-evaluate potential regulatory changes after the completion of the Revolutionary FAR Overhaul initiative.

Sources: U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov, U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Quebec Invests $10 Million in Satellite Launch Technology

The Quebec government announced a $10 million investment in Reaction Dynamics’ hybrid propulsion system for microsatellite launches, in partnership with Maya HTT, supporting domestic aerospace technology development.

Sources: Provincial Announcement: www.quebec.ca

Nova Scotia Responds to Federal Defence Spending Announcement

Nova Scotia’s Premier welcomed the federal government’s new defence investment and signaled the province’s readiness to contribute through manufacturing, technology, and supply of critical materials, referencing the region’s existing military and defence infrastructure.

Sources: Provincial Announcement: news.novascotia.ca

Public Officials' Social Media

Senator Tony Loffreda posted a summary of the $9 billion 2025–26 defence investment, noting allocations for CAF recruitment, equipment repair, digital modernization, industry partnerships, and international collaboration.

Sources: Social Media: x.com

Prime Minister Mark Carney stated that the government will invest in new submarines, aircraft, ships, armored vehicles, artillery, radar, and drones, with an emphasis on using Canadian materials and labor.

Sources: Social Media: x.com

MP Yasir Naqvi tweeted that Canada will achieve NATO’s 2% defence spending target this year, five years ahead of schedule, noting improvements to pay, equipment, and readiness for the Canadian Armed Forces.

Sources: Social Media: x.com

Senator Donna Dasko referenced the newly announced 2% of GDP defence spending target and asked the Government Representative in the Senate about the prospect of further increases to 5%.

Sources: Social Media: x.com

MP Ziad Aboultaif questioned the government’s new defence spending, asking for specifics on allocations and the concrete plan behind the announced investments.

Sources: Social Media: x.com

What We're Reading This Week

• Canada's $80 Billion Defence Modernization Package Signals Strategic Shift—Draganfly Positioned for Rapid Growth with Integration of DND-Specified Radio Systems: Draganfly prepares for increased demand as defence modernization drives radio systems integration.
• Justin Ling: Mark Carney’s defence plan might do more than just fix Canada’s ailing military: Commentary on broader implications of the federal defence plan.
• From pickup trucks to armoured vehicles: Could Carney’s military plans save Canada’s auto industry?: Analysis of how defence procurement could affect Canadian automotive manufacturing.
• Where will the billions in new defence spending come from?: Exploration of funding sources for defence investment