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: 2026-04-12 to 2026-04-18

📋 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

• Senate National Security, Defence and Veterans Affairs Committee to examine defence procurement and increased spending: The Standing Senate Committee on National Security, Defence and Veterans Affairs meets April 20, 4:00 p.m., to study defence procurement as it relates to Canada's increased defence spending commitments. Witnesses include representatives from the Office of the Auditor General and the Office of the Procurement Ombud.
• House Committee on National Defence reviews Francophone and Indigenous CAF members: On April 20, the House Standing Committee on National Defence discusses the role and experiences of Francophone and Indigenous members in the Canadian Armed Forces, 11:00 a.m.–1:00 p.m., with experts from academia and military history organizations.
• Commons Public Accounts Committee considers military recruitment issues from Auditor General’s 2025 Fall Reports: On April 20, the Public Accounts Committee meets to examine military recruitment findings from the Auditor General's 2025 Fall Reports, with senior officials from National Defence testifying, 11:00 a.m.–1:00 p.m.
• Industry and Technology Committee meets on U.S. tariffs’ impacts on Canadian advanced manufacturing: April 20 sees the Commons Standing Committee on Industry and Technology review the effects of U.S. tariffs on Canada's metallurgical and advanced manufacturing sectors, 3:30 p.m.–5:30 p.m., with industry association representatives and manufacturers providing testimony.
• Committee on Transport, Infrastructure and Communities examines Quebec and Canada port modernization: The Transport, Infrastructure and Communities Committee will discuss efforts to support and modernize Quebec and Canadian ports, and related human resource challenges for NAV CANADA and CBSA, April 20, 11:00 a.m.–1:00 p.m.

Federal Government News

Federal funding allocated to bolster Quebec’s defence industrial supply chain

The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions (CED), announced $4.5 million in non-repayable CED funding for Aéro Montréal, Propulsion Québec, and Sous-traitance industrielle Québec (STIQ) to enhance Quebec small and medium-sized enterprises' access to defence supply chains. These organizations will coordinate services for SMEs to help them meet the requirements of national and international defence markets, with STIQ receiving nearly $2 million to prepare manufacturing businesses and Aéro Montréal and Propulsion Québec jointly receiving $2.5 million to support commercial integration in the aerospace and smart vehicle sectors. The initiative is part of the Regional Defence Investment Initiative for Quebec, with $64.9 million budgeted over three years as part of a broader national investment of $6.6 billion over five years under the Defence Industrial Strategy. The funds, provided through CED’s Regional Economic Growth through Innovation program, are expected to stimulate research, innovation, and workforce development, providing SMEs the tools and funding necessary to participate effectively in defence procurement and contribute to meeting Canada’s NATO commitments.

Sources: www.canada.ca

Introduction of Level 1 of the Canadian Program for Cyber Security Certification for defence suppliers

Public Services and Procurement Canada and National Defence have launched Level 1 of the Canadian Program for Cyber Security Certification (CPCSC) for defence contractors, following a $25-million allocation in Budget 2023. The CPCSC, a mandatory requirement for select defence contracts starting in Summer 2026, establishes a three-level certification process aligned with international standards and the U.S. Cybersecurity Maturity Model Certification (CMMC) controls. Defence suppliers will use a self-assessment tool for Level 1, which involves attestation of 13 technical controls and is required for handling low-risk information or services. Levels 2 and 3 introduce external and government-led third-party assessments, applied to higher-risk contracts handling controlled or sensitive information. The phased roll-out is intended to provide industry time to adapt the mandated requirements. The program aims to protect specified information in defence supply chains, enable continued participation in international procurement, and maintain interoperability with Five Eyes partners.

Sources: www.canada.ca

Government of Canada launches Level 1 certification for defence supplier cyber security

Minister Joël Lightbound announced the introduction of Level 1 of the Canadian Program for Cyber Security Certification (CPCSC), which will come into force for select contracts beginning Summer 2026. Level 1 involves supplier self-assessment and attestation to meeting all required cyber controls, with Level 2 (external assessment) and Level 3 (government assessment) scheduled for future phases. At this stage, certification is required only at contract award, not during the bid process. The CPCSC is designed to strengthen standardized cyber security across the supply chain and support the Canadian Defence Industrial Strategy by ensuring robust protection for unclassified but sensitive information involved in defence contracts.

Sources: www.canada.ca

Canada and European Space Agency sign General Security of Information Agreement

On April 16, 2026, Ministers Joël Lightbound and Anita Anand announced Canada’s signing of a General Security of Information Agreement (GSOIA) with the European Space Agency. The agreement allows secure exchange of classified and sensitive information, lowering barriers for Canadian firms to compete for ESA contracts and join international supply chains. The arrangement supports work on dual-use space technologies, space-based communications and sensing systems, and related R&D. Canadian companies gain access to additional ESA programs, increasing opportunities to participate in global projects and contribute to domestic innovation and national security technology development.

Sources: www.canada.ca

Operation NANOOK-NUNALIVUT 2026 completes largest CAF Arctic deployment to date

The Canadian Armed Forces concluded Operation NANOOK-NUNALIVUT 2026, the largest winter iteration of this Arctic operation, involving 1,300 personnel and nearly 200 vehicles and equipment—including two M777 howitzers. The mission, running from February to April across multiple provinces and territories, featured multinational participation from Belgium, Denmark, France, and the U.S., as well as joint activities with Northern partners and Indigenous governments. Among several logistics and patrol operations, CAF conducted a 5,000 km long-range patrol, aiming to improve threat detection and defence readiness in the Arctic. Op NA-NU 26 fits under Canada’s participation in NATO’s ARCTIC SENTRY program, which aligns national and allied operations for Arctic defence.

Sources: www.canada.ca

Critical infrastructure cyber readiness initiative launched by Cyber Centre

On April 17, 2026, the Canadian Centre for Cyber Security introduced the Critical Infrastructure Resilience and Escalated Threat Navigation (CIREN) initiative. CIREN aids organizations in the energy, telecommunications, transportation, and water sectors to plan for severe cyber incidents, including scenarios lasting up to three months. The initiative includes guidance on isolating critical systems, creating independent operating capabilities, and planning for post-incident recovery. The launch responds to increased cyber threats, including those from state-sponsored and non-state groups leveraging AI tools. Its purpose is to support operational continuity and strategic national objectives during cyber emergencies.

Sources: www.canada.ca

Assault-Style Firearms Compensation Program for businesses re-opens

Public Safety Canada will re-open the Assault-Style Firearms Compensation Program (ASFCP) for business participation on April 23, 2026. The expanded second phase allows claims for firearms and devices prohibited in May 2020, December 2024, and March 2025, with compensation for deactivation ranging from $400 to $700 per firearm. The program provides $248.6 million in total compensation for businesses and individuals, with a claim submission deadline of June 4, 2026, subject to fund availability. Businesses remaining in possession of prohibited firearms after October 30, 2026, without appropriate privileges will face criminal liability. Information about filing claims and disposal options is available through the federal portal.

Sources: www.canada.ca

Government of Canada funds business growth in Delta and Richmond, B.C.

The Honourable Jill McKnight, Associate Minister of National Defence, on behalf of Minister Gregor Robertson, announced $10.5 million in investments for nine companies in Delta and Richmond, British Columbia, to support scale-up, modernize facilities, and advance global competitiveness. Airborne Engines will use the funding to upgrade equipment for more efficient helicopter engine maintenance, while companies such as Marcon and Dynamix plan to diversify offerings and digitize operations. Saltworks and Ideon focus on clean technology and critical minerals, each receiving funds to expand international reach and increase production. These investments enhance local manufacturing capacity, bolster supply chains, and develop expertise in aerospace, advanced manufacturing, and life sciences.

Sources: www.canada.ca

Canadian Armed Forces to participate actively in Exercise BALIKATAN

The Canadian Armed Forces will make their inaugural active contribution to Exercise BALIKATAN, led by the United States and the Philippines from April 20 to May 8, 2026. Canadian involvement extends across the Navy, Army, Air Force, Cyber Command, and Special Operations Forces, offering capabilities in missile defence, logistics, sustainment, medical support, and multinational coordination. CAF had previously only observed the exercise; this year marks active participation, supporting Operation HORIZON, aimed at engagement and interoperability in the Indo-Pacific region.

Sources: www.canada.ca

Military Police lay charges following investigation of CAF member death

On April 15, 2026, the Canadian Forces Military Police charged Master Sailor David Terry and Sailor First Class Alexandre Garrison with multiple service offences under the National Defence Act, including criminal negligence and dangerous operation of a conveyance, relating to the death of Petty Officer 2nd Class Gregory Applin. The charges arose from alleged actions while serving on HMCS Montréal and Naval Fleet School (Atlantic), with the investigation resulting from CAF’s review into the incident.

Sources: www.canada.ca

Funding announced for Nihtat Operations, Readiness & Training Hub in Inuvik

The Honourable Rebecca Chartrand, Minister of Northern and Arctic Affairs and Minister responsible for the Canadian Northern Economic Development Agency (CanNor), announced up to $1.5 million over three years for the Nihtat Gwich’in Council to establish the Nihtat Operations, Readiness & Training Hub (NORTH) in Inuvik, Northwest Territories. NORTH will provide regional businesses and workers with skills training, procurement and bid readiness support, cybersecurity readiness, and document management assistance to prepare for upcoming defence contracting and employment linked to Arctic operations.

Sources: www.canada.ca

Provincial Government News

B.C. funds clean-energy projects for marine sector innovation

The Government of British Columbia provided $100,000 each to Ascent Systems Technologies, Cleohydron Innovation, Mostar Labs, and Voltai through Innovate BC’s COAST Innovation Challenge. These projects aim to support the development and testing of renewable marine energy systems for coastal and remote applications.

Sources: news.gov.bc.ca

Manitoba and Canada agree to ‘one project, one review’ for Churchill Plus development

Premier Wab Kinew and Prime Minister Mark Carney agreed to a consolidated regulatory process for the Churchill Plus Project, covering new energy corridors, trade routes, and defence infrastructure in Manitoba with a focus on year-round Arctic shipping and economic security.

Sources: news.gov.mb.ca

Manitoba Premier leads business delegation to Ottawa advocating for defence base modernization

Premier Wab Kinew led a Manitoba business delegation to Ottawa to discuss priorities including CentrePort Canada expansion, trade corridor modernization, and advancing the Port of Churchill, with an additional focus on aerospace and advanced manufacturing sector growth.

Sources: news.gov.mb.ca

What We're Reading This Week

• Internal audit informed Liberals’ defence procurement reforms, government says: Coverage on findings from internal audit linked to procurement reform.
• Internal audit informed Liberals' defence procurement reforms, government says: Government’s internal processes for defence procurement reforms discussed.
• Dominion Dynamics awaits military procurement reform after successful Arctic deployment of sensor tech: Arctic deployment experience highlighted amid procurement reform developments.
• Military takes notes on wars in Europe, Middle East as it revitalizes Canada's air defences: Review of how CAF is adapting air defence strategy in current conflict environments.
• Audit warns military procurement faces ‘persistent’ hurdles: Analysis of ongoing challenges identified in military procurement.
• Canadian military procurement faces ‘persistent challenges,’ audit warns: Sector analysis following audit findings.
• Business Brief: The war on the war on drones: Developments in anti-drone technology business landscape.

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