This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning Canada's national defence, cybersecurity, weapons systems, military commitments, and Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF). Once a week, 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 and Foreign Affairs. Also consider subscribing to our Defense - Washington edition covering critical GR news south of the border.

Dates: 2026-03-15 to 2026-03-21

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• National Defence Committee to Examine Critical Minerals and National Security: On March 23, 2026, the House National Defence Committee meets on the nexus between national defence, national security, and Canada’s critical minerals sector, with senior departmental witnesses.
• Industry and Technology Committee Studies AI in Strategic Industries: Scheduled for March 23, 2026, the Industry and Technology Committee will study AI’s risks and regulation in Canadian strategic industries, including cybersecurity.
• Public Safety and National Security Committee Reviews Supplementary Estimates: Set for March 24, 2026, the committee convenes to study budget votes for Canada’s border, intelligence, and security agencies, with testimony from ministers and departmental leads.
• Foreign Affairs Committee to Consider Draft Reports on Arctic Strategy and Ukraine: On March 26, 2026, the Foreign Affairs Committee meets in-camera to review draft reports on Canada’s Arctic Strategy and its response to Russia’s war in Ukraine.

Federal Government News

Canada Launches Defence Industrial Strategy with $900 Million Investment in Advanced Defence Technologies

On March 19, 2026, Minister David J. McGuinty, on behalf of Minister Mélanie Joly, announced that the National Research Council of Canada is mobilizing over $900 million through the new Defence Industrial Strategy. This long-term plan aims to accelerate the development and commercialization of quantum technologies and dual-use systems, positioning Canada as a global competitor in the defence sector. The initiative will support the Canadian Armed Forces with advanced tools, including quantum computing, communications, and sensors. These developments are expected to improve domestic supply chains, generate specialized jobs, and deliver a technological edge to Canadian defence platforms. The approach pursues a whole-of-government commitment to reinforce national security and economic resilience.

Sources: www.canada.ca

Defence Investment Agency Finalizes Multi-Phase Assault Rifle Replacement Contract

The Defence Investment Agency, represented by Secretary of State Stephen Fuhr and Minister David J. McGuinty, announced on March 19, 2026 a major procurement with Colt Canada of Kitchener, Ontario. Up to 65,402 Canadian Modular Assault Rifle (CMAR) systems will replace the CAF’s legacy C7/C8 fleet. Phase 1 covers an initial order of 30,000 General Service rifles valued at approximately $307 million over three years, while Phase 2 provides an option for further orders. The contract features 80% Canadian content and is projected to contribute $10 million annually to GDP, with broad supplier participation under the Industrial and Technological Benefits Policy. The program is part of a fast-track, risk-based procurement to equip Canadian forces with modern assets aligned with NATO expectations.

Sources: www.canada.ca

Government of Canada Directs $1.4 Billion to Boost Domestic Ammunition Production

Minister David J. McGuinty announced on March 18, 2026, that Ottawa will invest $1.4 billion to increase domestic ammunition manufacturing as part of the Canadian Defence Industry Resilience (CDIR) Program. IMT Precision in Ontario will receive up to $305.4 million to construct a facility for 155mm artillery shells, expected to add 75 to 400 long-term skilled jobs and reduce foreign supply dependence. In Quebec, General Dynamics will build new plants for nitrocellulose, artillery charges, and 155mm high-explosive projectiles, backed by additional grants. These facilities will strengthen Canada’s NATO role, support critical supply chain security, and facilitate rapid procurement for the CAF.

Sources: www.canada.ca

Major Contract Awarded to MDA Space for Surveillance of Space 2 Program

On March 18, 2026, Stephen Fuhr, Secretary of State (Defence Procurement), confirmed a $32 million contract to MDA Space of Richmond, BC, for the Surveillance of Space 2 project. By 2028, three automated telescope installations will be operational in Alberta, Manitoba, and New Brunswick, providing enhanced, persistent ground-based space surveillance for the Canadian Armed Forces. The initiative will support around 80 jobs and add $9 million annually to GDP over six years. The program expands Canada’s contribution to NORAD and Operation Olympic Defender while fast-tracking procurement through centralized authorities. The move underscores ongoing investment into space-based and space-related infrastructure as part of Canada’s Defence Industrial Strategy.

Sources: www.canada.ca

Canada Invests $200 Million in Nova Scotia Spaceport to Anchor Sovereign Space Launch Capabilities

Minister David J. McGuinty announced a $200 million commitment on March 16, 2026, for core infrastructure at a Canadian-owned spaceport near Canso, Nova Scotia—a 10-year lease with Maritime Launch Services. This spaceport will enable launches of Canadian and allied payloads for Department of National Defence and Government operations. The Innovation for Defence Excellence and Security (IDEaS) program’s 'Launch the North' contest also awarded initial grants totaling $25 million to three Canadian launch entrants. Canada’s intent to join NATO's STARLIFT initiative was also announced, aiming to strengthen contingency launch access across member nations. The spaceport represents a foundational investment to secure independent access to space and supports the Defence Industrial Strategy’s focus on sovereign capabilities.

Sources: www.canada.ca

Canada Advances Support for Ukraine with Armoured Vehicle Production in Ontario

On March 17, 2026, Minister McGuinty visited Roshel’s Brampton facility to observe production of 383 Senator armoured vehicles, part of Canada’s $6.5 billion military aid package to Ukraine. This support includes artillery, training, and critical equipment for Ukraine’s defence sector. The supply agreement draws on direct feedback from Ukrainian forces for continuous product refinement and highlights the use of Canadian-made vehicles on the battlefield. The visit marks ongoing collaboration between Canadian industry and allied defence requirements.

Sources: www.canada.ca

Atlantic Canada Defence Sector Receives Targeted Investment through RDII and RTRI Programs

Three Dartmouth, NS, firms—MilAero Electronics Atlantic Inc., GSTS, and Survival Systems Limited—have secured more than $3 million through the Regional Defence Investment Initiative and Regional Tariff Response Initiative. Investments fund new equipment acquisitions, workforce expansion, facility upgrades, and implementation of digital and AI-driven solutions, including a modular training academy and a vessel-tracking AI platform. The infusion is expected to boost local supply chain resilience, increase efficiencies, and enable these SMEs to scale operations for defence industry contracting.

Sources: www.canada.ca

$16 Million Invested to Build Defence Capacity in Newfoundland and Labrador

On March 19, 2026, Ministers Sean Fraser and Joanne Thompson announced $16 million for five Newfoundland and Labrador companies under the Regional Defence Investment Initiative. PAL Aerospace will develop and commercialize a new missionized aircraft for maritime and Arctic surveillance, while Virtual Marine Technology will expand marine simulation-based defence training. Solace Power advances wireless power delivery for harsh climates, CoLab AI offers collaborative defence software, and Rutter Inc. is slated for developments in radar systems for naval and Arctic operations. Over 115 skilled jobs are anticipated from the funding.

Sources: www.canada.ca

Provincial Government News

Ontario Increases Emergency Preparedness with $5 Million Community Grant

The Ontario government is distributing $5 million via the Community Emergency Preparedness Grant to 115 recipients, supporting localized equipment purchases, training, and emergency operations centre modernization province-wide.

Sources: news.ontario.ca

Ontario Targets Critical Minerals Development with Investment in 68 Early Exploration Projects

Ontario is supporting 68 mineral exploration projects through the Ontario Junior Exploration Program, aiming to fortify critical minerals supply chains and create 71 jobs across northern and rural communities.

Sources: news.ontario.ca

Quebec-AI Showcased at Paris Business Event

Quebec companies participated in the Excellence Quebec Meetings in Paris, presenting AI and cybersecurity capabilities to European partners and reinforcing the province’s position in digital sovereignty and technology export.

Sources: www.quebec.ca

British Columbia Readies for 2026 Wildfire Season with New Infrastructure Investments

The BC government has expanded the BC Wildfire Service’s resources with $21 million in new capital funding, additional specialized equipment, and the establishment of a major equipment depot in Prince George for 2026 operations.

Sources: news.gov.bc.ca

What We're Reading This Week

• Canada fast-tracks army rifle upgrade with $307M initial order: Report on expedited procurement of next-generation service rifles for the Canadian Army.
• Ottawa earmarks $1.4 billion for key munitions production in Quebec, Ontario: Coverage of major investments in critical defence manufacturing.
• Munitions factory in Ingersoll, Ont., given multimillion-dollar defence contract: News story featuring new contracts in Ontario’s defence supply base.
• Canada announces defence industry program: News media reviews the federal government's launch of a new industrial defence program.
• Toronto Argonaut-turned-military outfitter wants Canadian Army to be ‘brilliant at the basics’: Interview feature on defence industry entrepreneurship.
• Research alongside DND could have far-reaching applications outside of military use: University-industry R&D collaboration with the Department of National Defence.
• Iveco Group transfers its Defence Business to Leonardo to create a European champion in the defence segment: Overview of European defence industry consolidation.
• Opinion: Speed is the new sovereignty in the Arctic: Perspective on Arctic defence strategy and rapid response.
• Ukraine opens battlefield AI data to allies: Article addressing the integration of AI-driven tools in modern conflict.

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