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: 2026-03-29 to 2026-04-04

📋 In This Week's Newsletter

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

Federal Government News

Defence Industrial Strategy Targets Supply Chain Strength and Export Growth

On April 2 in Mississauga, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism), introduced Canada’s new Defence Industrial Strategy. The approach involves up to $6 billion in financing via the Business Development Bank of Canada’s Defence Platform and a new Defence Industry Assist stream through the National Research Council to boost Canadian small and medium-sized enterprises. The strategy aims to create up to 125,000 high-paying jobs, boost defence exports by 50%, and grow SME revenues by $5.1 billion annually. Regional agencies are implementing a $357 million Regional Defence Investment Initiative to help businesses scale and access new markets. The policy focuses on prioritizing domestic firms, aligning defence spending with Canadian industrial strengths, and reducing reliance on foreign suppliers.

Sources: www.canada.ca

Long-Term Support Contracts for CC-330 Husky Fleet Strengthen Aerospace Readiness

Canada, through the Defence Investment Agency, awarded three major contracts for in-service support of the Royal Canadian Air Force’s CC-330 Husky fleet. L3Harris MAS Inc. will provide maintenance and materiel support, while Airbus Defence and Space S.A. delivers original manufacturer support services. The contracts are valued at $1.5 billion and cover engineering, regulatory compliance, spare parts, and specialized maintenance. The government applies the Industrial and Technological Benefits Policy, supporting 720 jobs across Quebec, Ontario, and Alberta and contributing $90 million annually to GDP. These investments align with the Strategic Tanker Transport Capability project and NATO’s 2% defence spending goals.

Sources: www.canada.ca

Canada Achieves NATO 2% Defence Spending Target

The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience, confirmed on April 2 in Edmonton that Canada reached NATO’s 2% defence spending benchmark in 2026. Rapid investments have created over 12,000 jobs and $1.15 billion in Alberta. Prairies Economic Development Canada is investing $379.2 million through the Regional Defence Investment Initiative to accelerate SME integration into supply chains over three years. The government plans half a trillion dollars in defence spending by 2035 toward NATO’s new 5% pledge. The initiative is designed to strengthen military readiness, drive innovation, and build industrial capacity across the Prairies.

Sources: www.canada.ca

FedDev Ontario Invests $14.5 Million in Aerospace and Space Innovation

On April 1, Minister Evan Solomon, responsible for FedDev Ontario, announced $14.5 million investment for Kepler Communications and Dishon Limited. Kepler received $7 million to advance Tranche 1 satellite engineering and commercialization, with ten operational satellites launched. The project positions Kepler in Canada's Defence Enhanced Surveillance from Space Project and Arctic communications. Dishon Limited secured $7.5 million to scale manufacturing at its Vaughan facility, boosting production of precision aerospace components. The expansion supports long-term sector competitiveness and military aviation applications in Ontario.

Sources: www.canada.ca

Historic Defence Infrastructure Investment at CFB Gagetown

The Government of Canada, led by Minister Dominic LeBlanc, Secretary of State Wayne Long, and Parliamentary Secretary David Myles, announced over $1 billion in investments at CFB Gagetown, New Brunswick, to recapitalize army training infrastructure and introduce new ground-based air defence systems. The upgrades enhance operational readiness, support CAF personnel with improved facilities, and contribute to regional economic growth. The investment is part of the ongoing plan to achieve the NATO 2% target, with future commitments toward reaching 5% of GDP in line with NATO’s Defence Investment Pledge.

Sources: www.canada.ca

Pacific Economic Development Canada Advances AI and Aerospace Technologies in British Columbia

On March 31, Will Greaves, MP for Victoria, announced over $13.8 million in funding for five projects in British Columbia through PacifiCan. Initiatives include next-generation satellite technology from Arcane Aerospace; Atreides’ AI-powered platform for unmanned systems; OSI Maritime Systems’ collision avoidance aid; and University of Victoria’s AI-powered drone system for high-res mapping. The Centre for Aerospace Research is establishing satellite ground station and testing facilities to support commercial adoption of defence and dual-use technologies. Applications for the Regional Defence Investment Initiative remain open until April 15.

Sources: www.canada.ca

Veterans Affairs Canada Announces Jetty and Housing Projects in Esquimalt, British Columbia

Minister Jill McKnight announced investments for Royal Canadian Navy infrastructure at CFB Esquimalt, including $1.1 billion for jetty replacements and $3.7 billion for expanded military housing. The jetty project is expected to support approximately 1,280 jobs, delivering seismically resilient infrastructure. Construction includes 7,500 new housing units at 25 locations country-wide. These initiatives follow Canada’s achievement of the NATO 2% defence spending target, continuing half a trillion dollars in defence investment over the next decade.

Sources: www.canada.ca

Major Investment at 5 Wing Goose Bay Supports NORAD Infrastructure Upgrades

The Honourable Joanne Thompson and MP Philip Earle announced up to $8 billion in investments at 5 Wing Goose Bay, Newfoundland and Labrador. A $187 million Energy Performance Contract was awarded to MCW Custom Energy Solutions to modernize the Central Heating Plant using electric boilers. The upgrades are anticipated to reduce energy costs by $8.6 million per year and lower GHG emissions by 19,000 tonnes annually. Construction begins May 2026 with completion expected by December 2030. The NNBI plan involves upgrades at northern sites to support NORAD missions and increase rapid mobilization capabilities.

Sources: www.canada.ca

Regional Defence Investment Initiative Supports Maritime Technology in New Brunswick

On March 31, Secretary of State Wayne Long, on behalf of Minister Sean Fraser, announced RDII investments in New Brunswick. University of New Brunswick will receive $813,739 to develop a Maritime 3D Digital Twin platform, supporting port capacity and real-time monitoring. CE3 Electronics Inc. is awarded $30,000 for a cybersecurity compliance initiative for defence contract eligibility. The RDII is structured to enhance local business integration into defence supply chains and advance dual-use technology capabilities.

Sources: www.canada.ca

Canadian Armed Forces Cyber Command Launches Official Command Badge

National Defence announced the launch of the Canadian Armed Forces Cyber Command (CAFCYBERCOM) official badge, reinforcing its identity as Canada’s military authority for cyber operations. The badge symbolizes CAFCYBERCOM's mandate to defend networks and carry out cyber operations, integrating signals intelligence, electronic warfare, and cyber activities. The design features signals intelligence heritage, electronic warfare representation, and symbolic elements such as the chess knight, lightning bolt, interlaced rings, Royal Crown, and maple leaves.

Sources: www.canada.ca

Upcoming Support for Defence SMEs Announced

On April 1, Minister Rechie Valdez announced an event scheduled for April 2 at Radiation Solutions Inc. in Mississauga to discuss new funding opportunities for Canadian small and medium-sized businesses in the defence sector. The media event provides further details about the government's priorities and upcoming support.

Sources: www.canada.ca

Provincial Government News

British Columbia Invests $241 Million to Double Skilled Trades Training Funding

Minister Jessie Sunner announced the province will invest $241 million over three years to modernize skilled trades training. With 40% of federal major projects located in B.C., demand for skilled trades workers is increasing.

Sources: news.gov.bc.ca

What We're Reading This Week

• Canada's $150-billion challenge: How to build a homegrown defence sector and fast: Analysis of Canada’s efforts to rapidly scale its defence industry.
• Airbus seeks to expand defence footprint in Canada: Coverage of Airbus’s plans for growth within the Canadian defence market.
• Opinion: Mark Carney’s new defence industrial strategy could meet the same fate as Trudeau’s ‘third option’: Commentary on the Defence Industrial Strategy’s potential trajectory.
• A $244 Billion Arms Race Is Brewing in Cybersecurity: Examination of sectoral growth in cybersecurity investments.
• The City of Oshawa wants to be a leader in Canada’s defence sector. Here’s its pitch: Local initiatives and city-level strategies in the defence industry.
• The Liberals need to show their defence math: Editorial on transparency in federal defence spending plans.

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