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.

Want to track GR news in industries related to Defence? Don’t miss this week’s updates in ICT & Cybersecurity.

Dates: 2025-09-21 to 2025-09-27

📋 In This Week's Newsletter

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

Canadian Federal GR News

Minister McGuinty reintroduces Military Justice System Modernization Act

On September 26, 2025, Minister of National Defence David J. McGuinty introduced the Military Justice System Modernization Act, reviving legislation (formerly Bill C-66) terminated in January 2025. The bill implements key recommendations from the Independent External Comprehensive Review by Louise Arbour and the Third Independent Review by Morris J. Fish. It removes Canadian Armed Forces jurisdiction over investigating and prosecuting Criminal Code sexual offences committed in Canada, transferring such cases to civilian authorities. Amendments also broaden eligibility for military judges to include non-commissioned members, revise appointment processes for senior military justice roles, and align sex offender and publication ban provisions with the Criminal Code. These changes are designed to insulate judicial authorities from command influence and uphold compliance with civilian legal standards.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Canada advances Assault-Style Firearms Compensation Program for individual owners

The Government of Canada launched a pilot for the voluntary Assault-Style Firearms Compensation Program (ASFCP) on September 23, 2025, beginning in Cape Breton, Nova Scotia. The pilot aims to test online and physical components of the compensation system, targeting the collection of 200 firearms over six weeks, supporting user service via a dedicated contact centre. Following the pilot, a nation-wide declaration period will open in fall 2025, after which approved claims will proceed to collection appointments and compensation in early 2026. The business stream, which previously collected over 12,000 prohibited firearms, will reopen to process claims for models prohibited in December 2024 and March 2025, as well as those restricted since May 2020. The government is reviewing timelines for the amnesty period, which currently covers over 2,500 prohibited makes and models.

Sources: Announcements: www.canada.ca

Minister McGuinty meets U.S. Secretary of War Pete Hegseth in Washington

On September 23, 2025, Minister of National Defence David J. McGuinty held bilateral discussions in Washington, D.C. with U.S. Secretary of War Pete Hegseth. The ministers discussed joint security efforts, reaffirming Canada’s commitment to rebuilding and funding the Armed Forces, including accelerated investments for continental defence. Both countries reiterated support for NORAD modernization. The talks referenced ongoing projects and investment timelines that affect continental surveillance and aerospace defence capabilities.

Sources: Announcements: www.canada.ca

Canada commits $60 million for Haiti stability and Caribbean maritime security

Foreign Affairs Minister Anita Anand announced $60 million in funding at the UN General Assembly High-Level Week in support of multilateral efforts for Haiti. Of this, $40 million is designated for the Multinational Security Support mission, conditional on a related UN Security Council resolution. An additional $20 million will enhance regional maritime security through capacity building, information sharing, and investigative reforms to curb trafficking of arms and narcotics in the Caribbean. The initiatives involve regional cooperation with G7 and CARICOM partners.

Sources: Announcements: www.canada.ca

Canadian Coast Guard enforces hazardous vessel penalties in Newfoundland and Quebec

The Canadian Coast Guard reported the issuance of $13,500 administrative monetary penalties to vessel owners in Burin, Newfoundland and Labrador (fishing vessel Exploits Harvester) and Saint-Jean-sur-Richelieu, Quebec (two pleasure crafts). The penalties, formalized under the Wrecked, Abandoned or Hazardous Vessels Act, followed the owners’ non-compliance with directives to remediate or remove hazardous vessels posing risks to public safety, the environment, and navigation. Penalty details are made publicly available, and repeat violations were noted for the Quebec owner. The Coast Guard encourages public reporting of problematic vessels.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Royal Canadian Navy extends Northern Affiliation program with HMCS Frédérick Rolette in Nunavik

On September 19, 2025, HMCS Frédérick Rolette participated in an official Northern Affiliation ceremony with the Nunavik Inuit community, formalizing long-term collaboration on the Arctic and Offshore Patrol Vessels. All six Harry DeWolf-class vessels will form similar affiliations across the North, engaging with local leaders, schools, and youth groups. The initiative fosters ongoing exchange and relationship-building relevant to defence operations and strategic Arctic engagement.

Sources: Announcements: www.canada.ca

Canada marks 85th anniversary of the Battle of Britain

On September 21, 2025, Ministers David McGuinty and Jill McKnight issued a joint statement commemorating the Battle of Britain's 85th anniversary. The statement detailed Canada's contribution, referencing more than 100 Canadian pilots and roughly 300 ground crew involved in the 1940 air campaign, with 23 Canadian pilots killed. Over 250,000 Canadians served in the RCAF during WWII, with 17,397 aviators recognized. The ministers affirmed the legacy's influence on coalition air tactics and operational excellence.

Sources: Announcements: www.canada.ca

Transport Canada funds Indigenous-led vessel noise monitoring projects

On September 25, 2025, seven Indigenous communities (T’Sou-ke Nation, Tsartlip First Nation, Malahat Nation, Penelakut Tribe, Stz'uminus First Nation, Snuneymuxw First Nation, Halalt First Nation) received funding through the Quiet Vessel Initiative to measure and assess underwater vessel noise impacts along the Trans Mountain Expansion marine route. Projects range from integrated hydrophone systems, vessel tracking and photo identification, to real-time whale localization dashboards. Funding supports scientific capacity building, environmental data collection, and acoustic monitoring, relevant to vessel operators and marine industry stakeholders navigating regulatory and operational changes.

Sources: Announcements: www.canada.ca

Canadian aircraft movements, September 6–12, 2025

Statistics Canada released weekly aircraft itinerant movement data for September 6 to 12, 2025, providing updated metrics on traffic relevant to defence logistics, aerospace manufacturers, and air service operators engaging in military and civilian transport.

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

Ministers Joly and Solomon announce new AI Strategy Task Force at ALL IN 2025

At the ALL IN 2025 event in Montréal, Ministers Mélanie Joly and Evan Solomon met with domestic and international AI leaders to discuss the development of secure, sovereign AI systems. Solomon announced the establishment of the AI Strategy Task Force to guide the next phase of Canada’s AI development, integrating quantum research and digital sovereignty priorities. Keynotes included references to the strategic role of AI in advanced manufacturing, supply chains, and national defence infrastructure, with engagement involving over 6,000 experts from 40 countries.

Sources: Announcements: www.canada.ca

US Federal GR News

Commerce Department opens public comment on Section 232 robotics and industrial machinery imports investigation

On September 2, 2025, the Commerce Department initiated a national security investigation under Section 232 of the Trade Expansion Act, examining the impact of robotics and industrial machinery imports. The scope includes CNC machining centers, metalworking equipment, programmable robots, and specialty industrial tools, excluding unmanned aircraft systems. Key focus areas identified for public comment include domestic production capacity, foreign supply chain risks, impacts of trade policies and subsidies, and future national security uses. Stakeholders may submit comments by October 17, 2025.

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

Federal Acquisition Regulation Overhaul supports small business federal contracting access

The Office of Federal Procurement Policy and Small Business Administration announced updates to federal acquisition processes on September 26, 2025, targeting regulatory simplification for small businesses. The Revolutionary Federal Acquisition Regulation Overhaul (RFO) eliminated over 1,600 requirements, expanding competition under the 8(a) program and streamlined contractor registration. Additional reforms include easier access to government-wide contracts, use of simplified acquisition procedures, enhanced post-award debriefings, and preservation of set-asides, aiming to broaden market participation and resilience.

Sources: White House Announcements: www.whitehouse.gov

Defense trade controls: Congress notified of major commercial export license proposals

On September 22, 2025, the State Department’s Directorate of Defense Trade Controls notified Congress under the Arms Export Control Act regarding proposed commercial export licenses for defense articles, services, and technical data exceeding $1 million, $50 million, and some over $100 million in value. These licenses cover firearms, machine guns, and support services for manufacturing, integration, and maintenance, with destinations including Colombia, Ukraine, Japan, Denmark, Italy, Singapore, Taiwan, and several European and Middle Eastern states. The notifications reviewed considerations such as political, military, economic, arms control, human rights, and nonproliferation.

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

Section 912: FERC orders new supply chain risk management reliability standards for bulk-power system

The Federal Energy Regulatory Commission (FERC) issued Order No. 912 on September 23, 2025, directing the North American Electric Reliability Corporation to develop updated Reliability Standards for supply chain risk management of the Bulk-Power System. Required modifications include documentation and tracking of supply chain risks, timing requirements for vendor reassessment, and expanded protections for protected cyber assets. NERC is required to file these standards by May 2027, following the rule’s November 2025 effective date. The Commission did not mandate vendor information validation, citing cost and auditability concerns.

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

Department of Defense advances CMMC 2.0 cybersecurity contractor requirements to final rule stage

On September 22, 2025, the Department of Defense’s semiannual regulatory agenda detailed the final rule stage for DFARS Case 2019-D041, implementing the Cybersecurity Maturity Model Certification (CMMC) 2.0 Framework for defense industrial base contractors. The rule, now in final review, is projected to impose annualized costs of $16 million, requires contractors (and their supply chain) to demonstrate adequate protection for controlled unclassified information in line with 32 CFR part 170. The agenda also referenced regulatory actions affecting small entities and ongoing comment periods for other rules.

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

Canadian Provincial GR News

Ministers sign multilateral agreement on digital trust and cyber security at FPT Symposium

Federal, provincial, and territorial ministers signed a cyber security collaboration agreement at the FPT Symposium in Alberta to facilitate real-time threat sharing and resource pooling, supporting critical infrastructure protection and procurement modernization.

Sources: Provincial Announcement: www.alberta.ca

Quebec launches collaborative innovation call for responsible AI and quantum technologies

The Quebec government opened a call for collaborative innovation projects in responsible AI and quantum technologies, offering up to $1.5 million per project for consortia of Quebec businesses with priority for SMEs and startups.

Sources: Provincial Announcement: www.quebec.ca

Alberta ministers respond to federal assault-style firearms buyback program

Alberta’s Minister of Justice Mickey Amery and Minister of Public Safety Mike Ellis issued a statement on September 23, reiterating provincial opposition to the federal firearms compensation program and outlining Alberta's enforcement policies.

Sources: Provincial Announcement: www.alberta.ca

What We're Reading This Week

• Defence hackathon brings whizzes from across Canada together to solve Arctic surveillance: Canadian engineers collaborate on Arctic defence innovation.
• Calian Launches Canada's First Defence Innovation Orchestrator to Scale Small to Mid-Sized Enterprise: New initiative targets SME capacity in defence innovation.
• Arctic Training Centre gives companies a chance to trial defence tech in northern climate: Northern facility enables field testing for military technology.
• Ottawa to prioritize tech with civilian and defence applications in new strategy: Dual-use defence technologies gain strategic focus.
• What I’ve Learned: CAE’s newly retired CEO on defence, undercover bossing and chilling out: Reflections on defence leadership and business practice.
• LevelBlue research finds rising cyber threats to manufacturing are driving leaders to prioritize cyber resilience: Manufacturers assess evolving cyber risk landscape.
• Danish defence ministry reports renewed drone sightings at military facilities: Military facilities monitor persistent drone activity.
• The Breakdown | How will Canada spend $8.7B on defence: Analysis of planned defence expenditures and capability investments.

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