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.

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Dates: 2026-03-22 to 2026-03-28

📋 In This Week's Newsletter

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

Federal Government News

Canada Meets NATO 2% GDP Defence Spending Target, Launches Major New Projects

Canada has achieved the NATO target of spending 2% of its GDP on defence for the 2025–26 fiscal year, with investments exceeding $63 billion. More than $18.3 billion has been allocated to infrastructure, capital acquisitions, and Defence Industrial Strategy-linked initiatives. Key projects include $22.2 billion for River-Class Destroyers, $1.24 billion for the Cormorant Mid-Life Upgrade, $2.2 billion for Fixed Wing Search and Rescue aircraft, and $2.74 billion to modernise the Army’s logistics vehicle fleet. Investments in defence infrastructure are set to total about $59 billion over the next decade, supporting an estimated 340,000 jobs. Major upgrades are underway across bases and in domains such as ammunition production, cybersecurity, and aerospace innovation. Canada’s ongoing efforts also include $2 billion in military aid to Ukraine and extended contributions to NATO operations. The government indicated a continuing trajectory towards the 5% GDP NATO investment pledge by 2035.

Sources: www.canada.ca

Over $3 Billion in Defence Infrastructure and Maritime Projects Announced for Atlantic Canada

The Prime Minister has committed over $3 billion for defence-related investments across the Maritimes, with a focus on Nova Scotia and New Brunswick. Projects detailed for CFB Halifax include $1.2 billion for critical power and municipal service infrastructure upgrades, as well as $648 million for new aviation support facilities. A further $871 million is slated for upgrades at the CFB Gagetown Range and Training Area in New Brunswick. Additionally, significant investment is targeting the Royal Canadian Navy’s River-Class destroyers, expanded training centres, and military housing to support operational capacity and recruitment.

Sources: globalnews.ca

Defence Investment Agency Event to Announce New Canadian Armed Forces Contracts

The Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, and the Honourable Mélanie Joly, Minister of Industry, will deliver a joint announcement on new contracts supporting Canadian Armed Forces operations. The event is set for March 30, 2026, in Mirabel, Quebec, and is expected to detail the latest procurement decisions being executed under the authority of the Defence Investment Agency. Media participation is by invitation following registration with Public Services and Procurement Canada.

Sources: www.canada.ca

Defence Sector Sees $3.6 Million in Cybersecurity Investment at Université du Québec en Outaouais

A $3.6 million federal non-repayable contribution via Canada Economic Development for Quebec Regions has been awarded to Université du Québec en Outaouais. This Regional Defence Investment Initiative funding will support the establishment of a defence-grade cybersecurity laboratory, focused on simulation of cyberattacks such as ransomware and industrial espionage, with an emphasis on safeguarding businesses in the sector’s supply chain. The new facility will augment innovation capacity and integrate immersive technologies, with ties to the university’s established partnerships in cybersecurity research and resilience. The laboratory aims to position the Outaouais region as a reference centre for transportation cybersecurity solutions.

Sources: www.canada.ca

Regional Defence Investment Initiative Targets Alberta Defence Industry Expansion

Prairies Economic Development Canada is providing over $6.1 million in funding through the Regional Defence Investment Initiative to support the Alberta defence industry. Wyvern will receive $2.99 million to improve satellite-based ship identification and maritime monitoring, while $3 million is allocated to the University of Alberta for the Dual-use Ecosystem for Future Engineering, National Defence and Sovereignty (DEFENDS) centre. An additional $149,850 will support the Council for the Advancement of Native Development Officers in launching an Indigenous Defence Supply Chain Program. These projects are structured to reinforce national security priorities through expansion of Canada’s defence industrial capability and supply chain diversification.

Sources: www.canada.ca

Canada Hosts First Negotiations on the Defence, Security and Resilience Bank

Representatives from eighteen countries converged in Montréal from March 23 to 26, 2026, to negotiate the charter for the multilateral Defence, Security and Resilience Bank (DSRB). The initiative, led by Ministers François-Philippe Champagne, David McGuinty, and Anita Anand, aims to provide long-term, low-cost capital for defence, security, and resilience projects. The DSRB will address critical financing gaps and support SMEs in defence supply chains, with negotiations following Canada’s pitch to be host country. The bank’s structure is expected to facilitate greater collaboration among allies and enable expanded defence and industrial investment.

Sources: www.canada.ca

Canadian Coast Guard Granted Expanded Security Role Under New Oceans Act Amendments

Recent amendments to the Oceans Act now confer security-related authorities on the Canadian Coast Guard, enabling it to undertake security patrols and perform surveillance and data collection for defence and intelligence functions. While the Coast Guard retains its civilian status and does not receive law enforcement authority, its enhanced situational awareness will add to national maritime security through collaboration with security partners in the Marine Security Operation Centres. Consultation with Indigenous Peoples is set to continue under these new responsibilities.

Sources: www.canada.ca

Border Security and Immigration Controls Enacted with Royal Assent of Bill C-12

The Strengthening Canada’s Immigration System and Borders Act (C-12) received Royal Assent on March 26, 2026. The legislation equips border agencies with expanded powers to inspect export goods, strengthens Canadian Coast Guard’s security responsibilities, and enhances RCMP information-sharing on registered sex offenders. Reforms address asylum claim processing, anti-money laundering regimes, and tools to counter transnational organized crime and illicit drug precursors. The Act also provides the CBSA with improved capabilities for aerial surveillance and advanced analytics.

Sources: www.canada.ca

Department of National Defence Opens Modernized Hangar 14 in Ottawa for Aerospace Testing

The Honourable David J. McGuinty, Minister of National Defence, presided over the opening of the renovated Hangar 14 at Ottawa International Airport. The facility, delivered under a $93.6 million contract with Pomerleau Inc., consolidates Aerospace Engineering Test Establishment functions into a 6,600 m² modern space. The project preserved heritage elements while bringing the structure up to current codes and will support rigorous aircraft and equipment testing for the Canadian Armed Forces. Approximately 150 jobs were generated during the renovation, and the upgrade is projected to reduce greenhouse gas emissions by 58% annually.

Sources: www.canada.ca

Budget 2025 Implementation Legislation Delivers Defence Investment Agency, Defence Industrial Strategy, and ‘Buy Canadian’ Policies

Bill C-15, the Budget Implementation Act, 2025, No. 1, has received Royal Assent, advancing measures to modernise the Canadian Armed Forces and supporting the Defence Industrial Strategy. The legislation introduces the Defence Investment Agency, improved personnel compensation, and the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS). 'Buy Canadian' policies are reinforced with new funds prioritizing domestic materials in federal defence procurement. The Act also signals funding for Arctic infrastructure, strengthened border enforcement, and trade diversification to shield against U.S. tariff risks.

Sources: www.canada.ca

Senate Hearing Examines Defence Procurement, Industrial Participation, and Indigenous Engagement

On March 23, the Standing Senate Committee on National Security, Defence and Veterans Affairs (SECD) received testimony from industry and academic witnesses. Michael Jacobs of the Canadian Council of Indigenous Business outlined economic reconciliation opportunities via set-asides in procurement for Indigenous businesses using the CCIB’s directory for verifications. The Aerospace Industries Association of Canada’s Mike Mueller called for effective delivery on the Defence Industrial Strategy and procurement reform. Michael Byers (University of British Columbia) cited procurement delays and cautioned against prioritizing industrial objectives over urgent military needs. The Defence Investment Agency, national security policy gaps, digital procurement platforms, and the role of General Dynamics and Irving Shipbuilding in sustaining sovereign capacities were also discussed.

Sources: senparlvu.parl.gc.ca

Senate Reviews Defence, Coast Guard, and NATO Spending in National Finance Committee

The Standing Senate Committee on National Finance on March 25 considered the 2025-26 Supplementary Estimates (C), which includes $1 billion for new security and defence initiatives alongside significant increases to Department of National Defence authorities and Coast Guard security enhancements. The session involved discussion of NATO spending targets, DND infrastructure decisions, and concerns about non-defence spending eligibility towards NATO benchmarks. The Coast Guard’s evolving role in security was addressed, with $129M in requested funding for related operations, affirming its continued civilian mandate. Other topics included munitions supply, the Capital Investment Fund, cybersecurity, and links between defence industrial strategy and NATO objectives.

Sources: senparlvu.parl.gc.ca

Provincial Government News

British Columbia Launches Marine and Coastal Innovation Testbed for Dual-Use Technologies

The Government of British Columbia, through its Look West strategy, is launching a provincewide marine technology testbed to support innovation in naval defence, vessel optimization, robotics, electrification, and coastal resilience.

Sources: news.gov.bc.ca

Nova Scotia Premier Responds to Major Federal Defence Investments

Nova Scotia Premier Tim Houston issued a statement in support of the Prime Minister’s announcement allocating roughly $2 billion for defence infrastructure and modernization projects in the province, highlighting Nova Scotia’s capabilities and defence industry track record.

Sources: news.novascotia.ca

What We're Reading This Week

• Prime minister commits more than $3B for defence projects in the Maritimes: Reporting details on new infrastructure and base upgrades in Atlantic Canada.
• 'Growth must be matched with investments': Halifax mayor on federal defence projects: Insight from municipal leadership on recent federal defence spending.
• Canadian army commander lists items for military modernization: Army leadership outlines modernization needs and procurement priorities.
• 'The world has changed and Canada must change with it': PM announces $3B defence spending package: Video coverage on the announcement of a new defence spending plan.
• Defence industry trade show in Calgary: Summarizes developments from a leading Canadian defence trade event.
• The $150 Billion Subsurface Intelligence Market Is Still Using Technology from the 1980s. This Defense AI Company Just Published a Research Framework to Change That.: Analysis of technological advancement opportunities in military intelligence.
• Opinion: Ottawa’s defence spending plan has ambition, but half of the equation is missing: Commentary on Canada’s new defence spending trajectory.
• Opinion: What’s in it for Canada in the new global defence bank? It may not be what you think: Examination of Canada’s expected role in the proposed Defence, Security and Resilience Bank.
• Is Canada moving quickly enough to equip its Armed Forces?: News segment assesses Canadian Armed Forces procurement efforts.

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