Welcome Package for the Senior Associate Deputy Minister of National Defence, Commissioner of the Canadian Coast Guard, and Canada’s Fentanyl Czar - March 2026 - Supplemental

Middle East

• Canada was not consulted, did not participate, and has no plans to participate in the offensive operations that are being undertaken against Iran.
• The Canadian Armed Forces (CAF) have approximately 200 personnel in the Middle East, deployed on six named operations. Based on events since February 27, 2026, efforts have focused on the force protection of CAF members, including relocating some within the region, staying in their location if force protection is appropriate, and where applicable, redeploying some back to Canada.
• All CAF members currently serving in the region are safe and accounted for.
• In accordance with established contingency planning and force protection procedures, the CAF continuously assesses threats and adjusts its posture, presence, and protective measures as required.

Canadian Armed Forces members stationed outside Canada (OUTCAN)

• Members of the Canadian Armed Forces (CAF) participate in exchanges with foreign militaries via the Military Personnel Exchange Program. If a CAF member is asked to deploy on operations with their host nation, they require a National Authority to Deploy which is based on the recommendation of the Chief of the Defence Staff and requires approval by the Minister of National Defence.
• CAF members cannot be involved in operations with foreign militaries without the approval of the Government of Canada. At this time, no such request for approval has been made as it pertains to Operations EPIC FURY and ROARING LION.

Defence Industrial Strategy

• Security, Sovereignty and Prosperity: Canada’s Defence Industrial Strategy sets a new direction for how Canada will develop and sustain the capabilities needed to protect Canadians and support its allies and partners.
• The Defence Industrial Strategy establishes the rebuilding of Canadian Armed Forces (CAF) capability and the reinforcement of Canada’s defence industrial base as essential pillars of national and economic security.
• It aligns defence investments with industrial capability, so Canada is well positioned to provide the CAF and our allies and partners with timely, secure, and reliable access to the capabilities required to defend, deter, and defeat current and future threats. More importantly, the Defence Industrial Strategy will deliver a modern defence industrial base that provides critical capabilities to the CAF and its allies, while also driving innovation, investment, good paying jobs and economic growth for all Canadians.

North Atlantic Treaty Organization (NATO)

Meeting NATO’s 2% of Gross Domestic Product (GDP) Defence Investment Target in FY 2025–26

• Canada rapidly increased defence investments by over $9 billion in cash this year (FY 2025-26) to bring our defence investment to 2% of our GDP.
• The Government of Canada will protect Canada’s sovereignty by rebuilding, rearming, and reinvesting in the Canadian Armed Forces (CAF). We are investing in operational readiness, new and emerging military capabilities, a strong defence industrial base, and stronger defence partnerships.
• The Government is making foundational investments in the CAF, expanding and enhancing existing and emerging military capabilities, strengthening Canada’s relationship with the defence industry and diversifying our defence partnerships.
• This is a generational investment in defending Canada and Canadians, which is foundational to Canada’s continued prosperity and ability to act as a leader on the global stage.

NATO Defence Investment Pledge (5% of GDP)

• At the NATO Summit in June 2025 Prime Minister Mark Carney announced that Canada and its North Atlantic Treaty Organization (NATO) Allies agreed, to a new Defence Investment Pledge of investing 5% of annual GDP by 2035 for the Alliance’s individual and collective security. The commitment aligns with Canada’s own strategic defence and security goals.
• As part of this 5% pledge, Canada will invest 3.5% of GDP in core military capabilities, expanding on recent investments. That means further investments in our Canadian Armed Forces, modernizing military equipment and technology, building up Canada’s defence industries, and diversifying defence partnerships.
• An additional 1.5% of GDP will be dedicated to investments in critical infrastructure and other defence-related expenditures such as new airports, ports, telecommunication, emergency preparedness systems, and other dual-use priorities that serve defence and civilian readiness. Importantly, the progress of this pledge will be reviewed in 2029 so that Allies’ expenditures align with the global security landscape.
• Budget 2025 further increased Canada’s defence expenditures, putting Canada on a pathway to meet the 5% NATO Defence Investment Pledge by 2035.

NATO Deterrence and Defence

• A credible NATO deterrence and defence posture is essential to safeguard the freedom and security of all its member states, and the Alliance must be ready to adapt and overcome current and future challenges.
• Canada is unwavering in its commitment to NATO. This is why Canada supports and actively participates in the development of deterrence and defence initiatives.
• In this work we must continually seek to avoid unintended escalation.
• Canada’s investment domestically and to North American defence, including by modernizing North American Aerospace Defense Command (NORAD), are key contributions to strengthening NATO’s Western Flank. It will enable us to deploy forces from North America in support of Allies and partners during a crisis or conflict.

NATO Climate Change and Security Centre of Excellence (CCASOE) / Climate Change and Security

• The NATO Climate Change and Security Centre of Excellence (CCASCOE) opened its doors in October 2024 in Montreal.
• It exemplifies Canada’s leadership in NATO’s efforts to address the security impacts of climate change.
• As an Arctic nation, Canada contributes unique perspectives and best practices on climate change and security, including the essential perspectives of Indigenous communities.
• Climate change is a defining challenge for NATO and the global community, with significant implications for Canada’s foreign, defence and security interests, from the practical to the geostrategic.

NATO and Cyber

• At the request of our Latvian Allies, the Canadian Armed Forces (CAF), in collaboration with the Communication Security Establishment, is strengthening Latvia’s cyber defence capabilities by deploying a persistent Cyber Task Force to Riga to conduct bilateral defence cyber operations on Latvian government and non-government critical infrastructure since 2022.
• This close partnership with Latvia enables the CAF to gain significant combined operational experience in the cyber domain, bolster NATO cyber resilience and contribute to NATO strategic deterrence.

Venezuela

• The Government of Canada is closely monitoring the situation in Venezuela and remains in contact with relevant partners.
• Canada takes the safety and security of Canadians abroad very seriously.
• Any questions on this situation should be directed to Global Affairs Canada.

Greenland

• As stressed by Prime Minister Mark Carney, Canada supports the sovereignty and territorial integrity of Denmark, including Greenland, which must be respected in accordance with international law.
• Canada will continue to work with Denmark, Greenland, the United States and other partners to fulfil our shared responsibility for the security and resilience of the Arctic.
• Any questions on this topic should be directed to Global Affairs Canada.

Defence Mobilization

• Initial planning has begun to explore how the Canadian Armed Forces could contribute to greater national resilience, including leveraging increased readiness from an expanded Reserve Force for defence purposes, in times of crisis, or for natural disasters for example. Participation in an expanded Reserve Force would be entirely voluntary.
• The initial planning direction is an internal document that simply formalizes the initiation of planning efforts. Work is underway, building on this initial analysis, to inform future proposals. There has been no policy change, and no plan has been developed at this time.

Procurement

Future Fighter Capability Project (FFCP)

F-35 Review

• The review of the F-35 is still ongoing as Canada continues to consider our Defence Industrial Strategy and work to maximize economic benefits for our businesses and workers.

F-35 acquisition

• Following expenditure approval in 2022, Canada had the required funding to proceed with acquiring an initial tranche of 16 F-35 aircraft via the Production, Sustainment, and Follow-on Development Memorandum of Understanding (PSFD MOU). However, this was not a firm financial commitment to purchase all 16 aircraft, but an administrative reservation. Firm financial commitments have been made for production of the first four aircraft and to guarantee the delivery of long-lead items to support the future production of the first 12 aircraft. A firm financial commitment for the production of the remaining 12 aircraft of the initial tranche of 16 aircraft has yet to be made. These payments are being made in alignment with the PSFD MOU.

Canadian Patrol Submarine Project (CPSP)

• Submarines are the Royal Canadian Navy’s (RCN) most powerful asset for projecting power far from Canada’s shores, offering the flexibility and endurance needed for a wide range of missions. Their unique combination of stealth, persistence, and lethality enables the RCN to detect, track, deter and, if necessary, defeat adversaries in the oceans surrounding Canada.
• The Government of Canada plans to acquire up to 12 conventionally powered, under-ice capable new submarines to replace the Victoria-class fleet. Through the CPSP, the new fleet will strengthen Canada’s security, support trade stability and contribute to economic growth. Modern submarines will expand undersea presence and surveillance across Canada’s oceans; enhance interoperability with Allied naval forces, and broaden defence industry partnerships and supply chains.
• The RCN’s current submarine fleet has an operational service life into the mid-to late 2030s. For a smooth transition between classes without a capability gap, the RCN requires its first new submarine to be delivered no later than 2035.
• On August 26, 2025, the Government of Canada identified German-Norwegian company TKMS and Republic of Korea company Hanwha Ocean Co., Ltd. (Hanwha) as the two qualified suppliers for the CPSP.
• The Government of Canada received proposals from the two qualified suppliers, TKMS and Hanwha Ocean Co., Ltd on March 2, 2026. After evaluating the proposals, the Government of Canada will identify a preferred supplier with whom to conduct contract negotiations.

Northern Operational Support Hubs

• Climate, geopolitical, economic and technological change are making Canada’s Arctic and its approaches more accessible to a wide range of actors, driving greater demand for Arctic and Northern operations, related to sovereignty, emergency response, and search and rescue.
• The Northern Operational Support Hubs will provide scalable capabilities and multi-use infrastructure that supports northern operations while meeting the needs of the territories, Indigenous peoples, and Northern communities where possible.
• These hubs will strengthen the CAF’s responsiveness across the Canadian Arctic and North and enable greater year-round military presence.
• The Defence Team will work closely with our federal colleagues and other partners, rightsholders and stakeholders to support a strategic approach to infrastructure development.

River-class Destroyers (RCD)

• The River-class destroyers are being developed to replace the capabilities of the retired Iroquois-class destroyers (4 ships) and the Halifax-class frigates (12 ships) with a single modern platform, capable of countering a range of threats in in open oceans and along the coasts.
• Constructed with precision engineering and advanced technology, the River Class Destroyers will form the core combat power of the future fleet of the Royal Canadian Navy (RCN). Together with the Joint Support Ships and the Arctic and Offshore Patrol Vessels, they will strengthen the surface capabilities to detect, deter and defend against threats to our national and international security.
• The River Class Destroyers initiative strengthens Canada’s naval capabilities while driving economic growth and job creation. The Implementation contract is estimated to contribute $719.3 million annually to Canada’s GDP and create/sustain 5,250 jobs (directly and indirectly) annually between 2025 and 2039.
• Consumer spending by employees at the shipyard and its suppliers is estimated to contribute an extra $191 million annually toward the GDP and support another 1,545 jobs annually in the Canadian economy during the same 15-year period.
• he River Class Destroyers are being built in batches to help manage construction costs and schedules. The build and delivery of the first batch – three ships along with initial spares, training, maintenance and logistics support products required to support the ships in service, ammunition and associated contractor fees - is estimated at $22.2 billion.
• On April 25, 2025, the River Class Destroyers project formally started Full-Rate Production on the future His Majesty’s Canadian Ship (HMCS) Fraser, which is expected to be delivered in 2032/33. In November 2025, construction of the land-based test facility in Hartlen Point, Nova Scotia, officially began. Construction is expected to be completed in 2028.The goal is to deliver 9 River Class Destroyers by 2040 and, ultimately, all 15 River Class Destroyers by 2050.

Joint Support Ships (JSS)

• The Protecteur class Joint Support Ships will exceed the operational capabilities of the Royal Canadian Navy’s (RCN) former Auxiliary Oiler Replenishment vessels. Designed to replenishing fuel, food, ammunition, spare parts and other supplies, and to carry and maintain up to two maritime helicopters, the JSS will provide limited sealift and combat support, enabling the Naval Task Groups to deploy and operate at sea for extended periods of time.
• In addition to strengthening the RCN’s future operational readiness, the JSS project supports the revitalization of Canada’s shipbuilding industry under the National Shipbuilding Strategy (NSS) by developing the domestic expertise, skills, and technologies needed to design, build and sustain ships in Canada.
• The cost of the JSS project is currently valued at over $6.06 billion (including taxes). This includes the funding for the two new ships, as well as all the equipment, tools, and project oversight required to build and bring the ships into service.
• Over a 15-year period, the project is expected to generate 2,410 jobs annually at the shipyard and among Canadian suppliers and contribute an estimated $265 million per year to Canada’s GDP, supporting sustainable employment, economic growth, and national and global security.
• Delivery of the JSS has experienced incremental delays as the shipyard refines is construction practices. The Government of Canada is reviewing the revised construction and delivery timeline received in September 2025.
• Each ship is expected to be operational within one year of delivery to the RCN, with the first JSS planned to be fully operational by 2028 and the second in 2029, enabling both vessels to be in service as part of the RCN’s fleet in 2029.

Arctic and Offshore Patrol Ships (AOPS)

• Canada acquired six Arctic and Offshore Patrol Vessels (AOPV) for the Royal Canadian Navy (RCN). These new patrol ships will operate in the Arctic annually between June and October, providing a greater Canadian Armed Forces presence in the North.
• The AOPV can break through new and first-year ice and have anti-icing features to protect the ships’ equipment in the Arctic, enabling the RCN to maintain a presence and surveillance of our northern maritime approaches and to navigate, unescorted, previously inaccessible areas of the Arctic.
• The AOPV are contributing to coastal surveillance, search and rescue, drug interdiction, humanitarian assistance, and disaster relief operations, and can integrate with a range of international partners.
• Full operational capability of all six ships is expected by 2026. HMCS Harry DeWolf, the first ship, already circumnavigated North America, including a transit through the Northwest Passage.

Arctic & Polar Over the Horizon Radars (OTHR)

• The Defence Team continues to enable the rapid development and deployment of Canada’s Arctic-Over-the-Horizon Radar (A-OTHR) system, to be based in Southern Ontario, as part of its commitment to North American Aerospace Defense Command (NORAD) modernization.
• A-OTHR will provide early warning radar coverage from the Canada-United States (U.S.) border to the Arctic Circle, strengthening the Canadian Armed Forces and NORAD’s awareness of potential threats.
• Canada intends to work with the Government of Australia to further develop OTHR technology in support of the A-OTHR project and will work closely with the United States for the interoperability of Canadian and U.S. solutions to strengthen domain awareness in North America’s approaches.

A-OTHR in Southern Ontario (statement to media)

• In partnership with Indigenous and local communities, up to four sites will be selected in the Southern Ontario region to house the Arctic OTHR system’s transmitters and receivers.
• The Department of National Defence (DND) purchased two sites in southern Ontario: the Kawartha Lakes site, for a full, permanent transmit site, and the Clearview Township site for a preliminary receive site. Both sites were privately owned land parcels listed on the open market.
• The sites will be parcels of land ranging in size from a minimum of 100 hectares to 1,200 hectares and will be located south of the 46th northern parallel. As a frame of reference, this latitude roughly aligns with the Trans-Canada Highway within the provincial border of Ontario.
• While DND is exploring land acquisition strategies to support A-OTHR needs, DND is not currently working on plans to expropriate land.

Logistics Vehicle Modernization (LVM)

• This new fleet of light and heavy logistics vehicles, trailers, vehicle modules, and armour protection kits will be used to transport larger loads of personnel, equipment, and supplies, as well as interchangeable modules that can be used as mobile command posts or workshops.
• The Logistics Vehicle Modernization project is currently in the implementation phase. Two contracts, with the potential total value of over $2.5 billion for the acquisition and long-term in-service support for up to 25 years for the new vehicles and equipment, were awarded in May 2024 to General Dynamics Land Systems – Canada and Marshall Canada, in a joint venture.
• The contract was amended on December 10, 2025, to increase the total number of logistics vehicles to over 2,200, in addition to related ancillary equipment like armour protection kits and infrastructure. This amendment is valued at $532.8 million.
• Delivery of the new vehicles is expected to begin in fall 2027. Initial operational capability is currently expected in fall 2028, with full operational capability expected in fall 2030. These dates will be confirmed with the contractor as work progresses.
• This project is expected to support 1,900 jobs on an annual basis and generate over $350 million a year in economic activity across Canada. The Logistics Vehicle Modernization vehicles will be integrated and assembled in Ontario, mission modules will be manufactured in the Maritimes, and the trailers will be built in Alberta, British Columbia, and Quebec.

Armoured Combat Support Vehicle (ACSV)

• The Armoured Combat Support Vehicle (ACSV) project is providing an armoured combat support capability to the Canadian Armed Forces (CAF) with a new fleet of 360 armoured support vehicles employed in eight variants: Command Post; Mobile Repair Team; Maintenance and Recovery Vehicle; Ambulance; Electronic Warfare; Engineer; Troop Cargo Vehicle; and Fitter Cargo Vehicle.
• The new fleet of 360 Armoured Combat Support Vehicles are being procured through a $2.1 billion (taxes included) contract with General Dynamics Land Systems – Canada (GDLS-C).
• With the Government of Canada’s donation of 39 ACSVs to Ukraine in early 2023, changes were introduced to the ACSV production schedule. Instead of receiving the Troop/Cargo Variant first, the ambulance variant was the first ACSV delivered to the Canadian Army.
• The ACSV project is in the implementation phase and reached a significant milestone by achieving Initial Operational Capability on January 15, 2025. As of summer 2025, 109 vehicles have been delivered to the CAF; Full Operational Capability is expected by the end of 2028.
• The Industrial and Technological Benefits (ITB) Policy was applied to the contract, requiring General Dynamics to make investments into the Canadian economy equal to the value of the contract by providing opportunities for Canadian small and medium businesses and supporting innovation and skills development for Canadian workers. The total ITB obligation is $1.906 billion.
• 1,650 jobs will be supported annually at GDLS-C and approximately 8,500 across Canada over the 2019-2028 period.

Long Range Precision Strike (Land)

• The Long Range Precision Strike (Land) (LRPS(L)) project will s strengthen Canada’s ability to deter threats and protect critical areas like the Arctic, reinforcing the country’s ability to defend its borders and sovereignty against adversaries in an unpredictable global environment.
• In December 2024, Canada submitted a Letter of Request to the United States (U.S.) Government to request a potential purchase of High Mobility Artillery Rocket System (HIMARS) launchers, preliminary Operational Stock of munitions, spares, training, and support services under the Foreign Military Sales (FMS) program.
• With the Congressional Notification process now complete, the U.S. Government will provide a Letter of Offer and Acceptance (LOA) to the Government of Canada. Neither the receipt of Congressional Notification nor an LOA commits Canada to the purchase of the HIMARS.
• Once received, the Government of Canada will review the LOA and decide on a way forward.
• As part of the development process for acquisition strategies, Canada will continue to carefully consider various factors, including geo-political considerations, operational effectiveness, interoperability, and economic benefits to Canada.

Procuring from United States firms

• Canada is diversifying its defence partnerships. We will continue to leverage partnerships with the United States when it is in the country’s best interest to do so.
• Canada is considering all options to diversify equipment/components for its fleets so that it is not reliant on any one source for defence equipment.

Canadian Armed Forces (CAF) Recruitment and Retention

• In 2024-25, 6,710 new Canadian Armed Forces (CAF) recruits were enrolled into the Regular Force, surpassing the year’s target of 6,496 recruits. This represented the highest CAF recruit intake in ten years.
• The CAF is committed to achieving its recruiting goal of 6,957 Regular Force members for fiscal year 2025-26.
• Work is underway to reach the CAF’s authorized strength of 71.5K Regular Force members by March 31, 2029.
• The recruiting process is complex, involving medical assessments, reliability screening and suitability interviews. Efforts are focused on using digital technology to improve the applicant experience, speed up required screenings, and connect with new pools of applicants.
• In January 2025, Immigration, Refugees and Citizenship Canada began sharing information with the Defence Team to expedite security screening and enrollment for Permanent Residents, while exploring options for them to serve in a probationary period as they wait to be approved.

Continental Defence

United States Defence Relations

• Canada and the United States face common threats to security and prosperity and are uniquely positioned to continue addressing these threats together.
• Canada will continue to work with the United States to address mutual defence and security challenges when it is in the Canadian interest to do so.
• Canada and the United States have worked closely together for the shared air defence of North America through the North American Aerospace Defense Command since 1958, the only bi-national command of its kind.
• Canada continues to invest in and strengthen national defence capabilities to protect sovereignty and national interests, and to support collective security with Allies and partners.
• Canada and the United States’ (U.S.) longstanding security partnership is rooted in a shared responsibility for the defence of North America. This includes through the North American Aerospace Defense Command, and for collective security under the North Atlantic Treaty Organization. The Canadian Armed Forces have a long history of operating alongside the U.S. military, including through joint training and multinational operations.

Integrated Air and Missile Defence (IAMD)

• Canada’s 2024 Defence Policy, Our North, Strong and Free commits to further improving Canadian Integrated Air and Missile Defence, including by acquiring a fleet of airborne early warning aircraft, deployable maritime sensors, drones and counter-drone capabilities, and long-range missiles capabilities.
• Options for ground-based air defence systems to defend critical infrastructure are also being explored.

North American Aerospace Defense Command (NORAD) Modernization

• In June 2022, the Minister of National Defence announced Canada’s plan to invest of $38.6 billion (accrual) over twenty years to modernize NORAD.
• These investments will allow for modernized surveillance, communications, and command and control capabilities, new air weapon systems, and upgraded infrastructure across the country.
• Joint Canada-U.S. efforts to modernize NORAD’s capabilities will help meet evolving security challenges, reinforce the close cooperation between both countries, and further solidify NORAD’s central role defending North America from aerospace threats.
• Canada is also investing in Airborne Early Warning and Control aircraft and maritime sensors, which will further support NORAD’s mission set and expand our awareness of potential threats.
• Progress so far includes collaboration with the U.S. on Over-the-Horizon-Radar (OTHR) and other domain awareness solutions, air weapons systems, binational work on NORAD Cloud-Based Command and Control, and the Strategic Tanker Transport Capability (STTC) contract announced in July 2023.
• We are also engaging Northern partners including northern governments and municipalities, and the Nasittuq Corporation to advance significant upgrades to our Northern infrastructure to support NORAD operations.

Arctic Security

• Defending the Arctic and the North and safeguarding Canada’s sovereignty in the region is a top priority for the Government of Canada.
• The rapidly warming Arctic brings potential increased access to shipping routes, natural resources, and strategic footholds across the North, making the region more accessible to foreign actors who have growing capabilities and regional ambitions.
• Adversaries such as Russia and China are demonstrating a more assertive posture in the region and seeking to challenge the rules-based international order.
• Responding to these threats requires effective collaboration across all levels of government, with Northern and Indigenous partners, and among allies and partners.
• Canada has made the Arctic the focal point of its defence strategy recognizing the importance of doing more to detect, deter and defend against threats in the Arctic across all domains, and much more quickly.
• Canada is investing in new capabilities that will support the Defence Team’s northern presence, reach, mobility, and responsiveness. These include northern operational support hubs, airborne early warning and control aircraft, new cyber, space and satellite capabilities, specialized maritime sensors, under-ice capable submarines, ice-capable Arctic and Offshore Patrol Vessels, and more.
• Operation NANOOK, the Canadian Armed Forces’ signature Northern operation, aims to improve interoperability with allies and partners and enhance pan-domain awareness.

Arctic Foreign Policy

• Global Affairs Canada released Canada’s Arctic Foreign Policy in December 2024, which complements the initiatives outlined in Canada’s defence policy, Our North, Strong and Free.
• The Arctic Foreign Policy outlines Canada’s diplomatic strategy for engagement in and on the Arctic, with the aim of continuing to safeguard our sovereignty and promote a stable, prosperous, and secure Arctic region.
• The Arctic Foreign Policy is composed of four foreign policy pillars: asserting Canada’s sovereignty, advancing Canada’s interests through pragmatic diplomacy; leadership on Arctic governance and multilateral challenges; and adopting a more inclusive approach to Arctic diplomacy.
• A key strategic objective for Arctic security is strengthening cooperation and collaboration with domestic and international partners, including Indigenous communities, is key to Arctic security.
• Building relationships with Inuit and Northern Indigenous communities helps the Canadian Armed Forces (CAF) understand Inuit Nunangat and the North, strengthening its ability to safeguard Arctic safety, security, and defence.
• Local Inuit and Indigenous communities are at the forefront of safety and security in the Canadian Arctic and Northern regions. Their local experience and knowledge are unparalleled and are key in the planning of defence activities in the region.

Army Modernization

• The Canadian Army is undergoing a generational shift in how it is structured, equipped, trained, sustained, and integrated for major combat operations.
• The goal is to build a scalable, agile, and lethal force that is fully interoperable with partners and allies, and able to detect, deter and defeat threats across the full spectrum of operations.
• The restructuring shifts the Canadian Army from brigade-centric design to four major formations aligned to operational roles:
  • The Defence of Canada Division is the homeland defence force and the foundation for national mobilization, providing a trained and equipped Army presence across the country.
  • The Manoeuvre Division, as the Army’s primary combat force, is designed for rapid deployment and high-readiness operations.
  • The Support Division is the backbone of Canadian Army base and institutional support with links to the national supply chain and defence industry initiatives.
  • The Training Division will deliver individual and collective soldier training, integrating modern tools like simulation and digital platforms.

Operation REASSURANCE / Multinational Brigade Latvia

• Operation REASSURANCE is Canada’s contribution to NATO’s deterrence and defence efforts and is Canada’s largest international military commitment involving the deployment of land, sea, and air elements to Europe.
• The Canadian-led Multinational Brigade-Latvia is a combat-capable, credible, robust response to the security environment on NATO’s Eastern flank.
• The Multinational Brigade-Latvia is comprised of approximately 3,000 Allied military personnel, including up to 2,200 persistently deployed Canadians.

Assistance to Ukraine

• Canada remains ready and willing to contribute to the Coalition of the Willing in support of Ukraine’s just and lasting peace. We remain closely involved in military and political planning discussions alongside key allies and partners.
• Since February 2022, Canada has committed over $23.5 billion in overall multifaceted aid to Ukraine.
• Canada has committed $6.5 billion in military assistance to Ukraine since 2022. This includes critical equipment such as armoured vehicles, ammunition and explosives, drone and counter drone capabilities, winter gear.
• Previous donations include 8 Leopard 2A4 main battle tanks and an armoured recovery vehicle (ARV), a National Advanced Surface-to-Air Missile System (NASAMS), high-resolution cameras, satellite imagery and communications, and more.
• Canada will continue advancing its contributions to the Ukraine Defence Contact Group’s (UDCG) Armour, Drone, Air Force, and Information Technology Capability Coalitions, working closely with Allies and Ukraine to strengthen these key defence areas. The UDCG is a forum of over 50 countries that convenes routinely at the ministerial level to synchronize, consult, and coordinate military assistance donations to strengthen the capacity of the Armed Forces of Ukraine.
• Through Operation UNIFIER, launched in 2015, at the request of the Ukrainian government, the Canadian Armed Forces has trained over 47,000 members of the Security Forces of Ukraine (SFU), nearly 13,000 of which were trained since Russia’s full-scale invasion.
• The Defence Team’s Military Training and Cooperation Program’s Capacity Building program provides $8 million annually to support Defence Institution Building and Defence Capacity Building initiatives in Ukraine.

Canadian Coast Guard (CCG)

• On September 2025, the Canadian Coast Guard (CCG) was transferred from Fisheries and Oceans Canada to the Department of National Defence, reporting to the Deputy Minister of National Defence and accountable to Parliament through the Minister of National Defence.
• The transfer strengthens operational cooperation between the CCG and the Canadian Armed Forces.
• The CCG remains a separate, civilian, Special Operating Agency.
• This transfer also enables the use of CCG assets – its ships, helicopters, sensors, operational centres – to support security activities.
• With its extensive fleet and experience on the water, the CCG is well positioned to make a significant contribution to Canada’s security.

Bill C-12 – New security role for the Canadian Coast Guard

• Through the Strengthening Canada’s Immigration System and Borders Act (Bill C-12), the Government of Canada is proposing to expand Canadian Coast Guard (CCG) services to further support security.
• This would help contribute to the protection and sovereignty of Canada’s vast coasts and waterways, especially in remote Northern locations.
• This change would strengthen Canada’s security capacity by allowing the Government to leverage the CCG’s significant presence from coast to coast to coast, the Great Lakes and the St-Lawrence, to conduct security-related activities, making Canada stronger, more adaptable, and more responsive.
• These new security-related activities are not expected to impact the current services Canadians have come to expect from the CCG. The CCG would continue to provide search and rescue, icebreaking, and environmental protection, while ensuring safe navigation and supporting ocean science.

Aircraft Services Directorate transition

• Transport Canada’s aircraft services directorate will be transferred to the Canadian Coast Guard (CCG) and become part of the Department of National Defence.
• The aircraft services directorate will continue to provide the services that Canadians rely upon including pilots for CCG programs and in support of Transport Canada’s National Aerial Surveillance Program, which supports environmental and marine mammal protection.
• The transfer of the aircraft services and assets to the CCG will further bolster their aerial fleet and support its services, including the proposed security activities under the Strengthening Canada’s Immigration System and Borders Act.

Indo-Pacific

Indo-Pacific Strategy

• As a Pacific nation, Canada is committed to promoting a free, open, and inclusive Indo-Pacific.
• The region faces many challenges: the rise of authoritarian powers threatening democratic norms and principles; diplomatic, economic, and military coercion; the weaponization of trade; and the undermining of human rights and media freedom.
• Through Canada’s Indo-Pacific Strategy, we have increased our defence presence in the region, allowing for more engagement, cooperation, and collaboration with allies and partners.
• That includes the persistent deployment of three Royal Canadian Navy (RCN) ships per year in the region, increased Canadian Armed Forces (CAF) participation in regional and multinational exercises, tailored defence training, cyber defence cooperation, and more.
• These engagements directly support the promotion of peace, resilience, and stability in the region, and help uphold respect for international law.
  • Operation HORIZON is Canada’s forward military presence mission to promote peace and stability in the Indo-Pacific and uphold respect for international law.
  • As part of Operation HORIZON, the CAF conducts training, exercises, and engagements with foreign militaries and other international security partners.
  • Operation NEON is Canada’s contribution to a coordinated multinational effort to support the implementation of United Nations Security Council (UNSC) sanctions against North Korea.

China

• Canada is concerned with China’s actions regarding Taiwan, its efforts to further militarize the South China Sea and challenge navigation and overflight rights, which harm Canada’s national interests.
• China has demonstrated that, at times, it is willing to engage in coercive behaviour that challenges stability in the Indo-Pacific.
• Canada will challenge China as required, including when it engages in coercive behaviour or undermines our national security interests and those of partners in the region.
• After several years of extremely difficult relations, Canada is recalibrating relations with China in a pragmatic and constructive manner.
• We will cooperate with regional partners, and work towards greater dialogue with China to find solutions to global issues while protecting and preserving the international order based on the rule of law.

Taiwan – Responsive Only

• Canada’s Taiwan Strait transits are a part of our routine naval activities in the region, including our warships sailing in the region between various ports and operating areas.
• Canadian Armed Forces operations re-affirm Canada’s commitment to maintaining the status quo across the Strait, in support of peace and stability in the region.

Latin America and Caribbean

Operation CARIBBE

• The Canadian Armed Forces (CAF) has provided support to Operation CARIBBE since 2006, a contribution to United States Enhanced Counternarcotics Operations under Joint Interagency Task Force South (JIATF-South).
• The Defence Team continuously review operational engagements to confirm they remain consistent with Canada’s legal obligations and strategic interests.
• HMCS Yellowknife completed its mission on March 6, 2026, after a seven-week deployment.

Science and Technology

• Technology is reshaping global competition, and emerging capabilities are redefining the battlespace. Canada has a long history of leadership, recognized the world over for successful research and development in the defence space.
• The Defence Team’s Defence Research and Development Canada entity works across the organization to anticipate future challenges and develop advanced solutions. It also works closely with allies and partners, industry, and Canada’s research community.
• In June 2025, the Government of Canada announced the initiation of the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS). This will strengthen Canada’s capability in artificial intelligence, quantum computing, and other critical fields shaping the future of defence.
• Working with like-minded partners and allies is vital to success. Partnerships strengthen Canada’s ability to innovate, adapt, and stay ahead of evolving threats.

Emerging and Disruptive Technologies

• Technologies such as artificial intelligence, autonomous systems, quantum sensing and computing, and biotechnologies are impacting the nature of military operations and directly threatening economic security and measures to address climate change.
• Canada must rapidly pursue advancements in strategic critical technologies and integrate them into military capabilities. However, we must do so in a responsible, lawful and ethical manner.
• Maintaining technological superiority will necessitate increased investment in research security, protecting sensitive technology transfer and supply chains, and collaborating closely with industry and academia.
• The Canadian Armed Forces (CAF) recognizes the increasing value of uncrewed systems like drones in improving the effectiveness of its Forces for missions such as intelligence, surveillance, combat operations, logistics, engineering, security, and much more.
• Uncrewed systems are already in use in the CAF, with multiple ongoing projects aiming to significantly accelerate their adoption.

International Cyber Security

• Malicious cyber activity and threats are a significant and persistent risk to Canada’s national security. These risks are intensified by emerging technologies such as artificial intelligence and quantum computing.
• The Government of Canada has robust measures in place to protect our democracy and Canadians from malicious cyber activity. These measures are continually reviewed in the context of new and evolving threats.
• Canada’s 2024 Defence Policy, Our North, Strong and Free directed the Defence Team to expand its cyber capabilities, including through the creation of a Cyber Command and the establishment of a joint Canadian cyber operations capability. This entity formalizes the partnership between the Canadian Armed Forces and the Communication Security Establishment in the cyber domain.

Foreign Interference

• The Government of Canada has robust measures in place to protect our democracy and Canadians from foreign interference. These measures are continually reviewed in the context of new and evolving threats.
• Global Affairs Canada works closely with partners so that policies and activities are aligned, that we share lessons learned, and amplify joint approaches as they relate to foreign interference.
• Canada is well-resourced to be a world leader, alongside its Five Eyes partners, through work led by the Communications Security Establishment Canada, which plays a significant role with its capabilities in foreign intelligence, cyber security, active and defensive cyber operations, and technical and operational assistance to federal and international partners.
• Canada’s law enforcement agencies, including the Royal Canadian Mounted Police, are well positioned to combat foreign interference. These agencies leverage substantial tools and relationships, including with intelligence communities, at home and abroad, to address threats of foreign interference and national security.

Housing

• Housing affordability continues to be a challenge for many Canadians. Canadian Armed Forces (CAF) members face the added challenge of relocation, often moving to communities with higher housing costs than the one they leave behind.
• The Government of Canada is investing to better support CAF members navigating housing challenges — removing housing as a barrier to service.
• Through Canada’s 2024 Defence Policy, Our North, Strong and Free and Budget 2024, more than $1.4 billion in capital funding is allocated to the Canadian Forces Housing Agency to build 1,400 new residential housing units across Canada and renovate 2,500 military housing units over the next 20 years. In addition to the upcoming CAF Housing Strategy, this sets a plan to modernize housing policies, increase supply, and better support CAF members and their families.
• Financial supports, such as the Canadian Forces Housing Differential (CFHD), Separation Expense benefits, and limits on rental costs enable affordability and stability, particularly for CAF members posted to high-cost locations. In 2025, CFHD rates increased by more than 10% in 16 locations across Canada, helping CAF members keep pace with rising housing costs.
• CAF members’ compensation and benefits have evolved along with housing policies, so that service remains sustainable and rewarding. Modernized policies now include inclusive family definitions, updated priority rules favouring newer CAF members, and limits on occupancy costs for residential housing units.
• The Defence Team continues to pursue alternative solutions, including targeted acquisitions of existing properties near bases and wings across Canada to quickly expand capacity, working with owners to create a supply of reserve market rental units, and co-housing agreements. This includes most recently the acquisition of a 52-unit apartment building in Courtenay, British Columbia. This $19.1 million apartment complex will provide accommodations for Canadian Armed Forces (CAF) members working at 19 Wing Comox, with occupancy expected to begin in summer 2026.

Women, Peace and Security (WPS)

• Canada continues to play a leadership role in the Women, Peace and Security (WPS) agenda. We are committed to working with Allies to maintain a people-centered and gender-sensitive approach in NATO actions and activities.
• The Defence Team recognizes that armed conflict, natural disasters, and humanitarian crises affect women and girls differently. As noted in Canada’s 2024 Defence Policy, Our North, Strong and Free, integrating gender perspectives in military operations and institutions strengthens the operational effectiveness of our military forces.
• The Defence Team is committed to institutional change. Gender equality, gender-responsive operations, and increasing the meaningful participation of women in peace support operations are clear priorities for the future.
• On March 28, 2024, Canada released its third National Action Plan on WPS: Foundations of Peace: Canada’s National Action Plan on Women, Peace and Security – 2023 to 2029.The Action Plan and Defence Team Implementation Plan reflect Canada’s resolve to sustain its role as a global leader on WPS.

Conduct and Culture

Culture Change

• Creating a safe, respectful, and inclusive workplace for all Defence Team members is our top priority. This means eliminating harassment, discrimination, and harmful behaviours at every level.
• Our goal is to build a more inclusive institution where all members of the Defence Team have a sense of belonging and feel empowered to contribute fully to our mandate. This work will make the entire Defence Team stronger and our military forces more operationally effective and combat ready.
• We are taking deliberate, coordinated actions across the organization to prevent and address misconduct, racism, biases, and systemic barriers, ensuring real and sustained progress.
• Culture change is incremental and requires a systemic, sustained, and continuous effort. We continue to listen and learn from Defence Team members, external stakeholders, and partners as we work toward building a safer and more inclusive work environment.
• Achieving measurable and enduring cultural change is critical to supporting Defence Team members and maintaining public confidence in our ability to deliver defence and security for Canadians.

Hateful Conduct

• Providing all Defence Team members with a psychologically safe, inclusive, and respectful workplace—free from harassment, discrimination, and hateful conduct—remains a top priority for the organization.
• We are taking deliberate and coordinated action to eliminate misconduct, racism, discrimination, biases, harmful stereotypes, and systemic barriers.
• Hateful conduct, which can range from conduct deficiencies to criminal acts of a hateful nature, is prohibited. It is incompatible with CAF values and ethos, the Department of National Defence and Canadian Forces Code of Values and Ethics, and the Values and Ethics Code for the Public Sector. All allegations are taken seriously, investigated, and addressed in accordance with established policies and procedural fairness.
• The Defence Team upholds clear policies defining unacceptable behaviour, provides training to promote safe and respectful workplaces, and maintains processes to support reporting, assessment, and timely action. Efforts include strengthened recruitment and screening measures, such as a probationary period.
• We are responsible for fostering a cohesive, resilient, and ethically grounded culture that reflects Canadian values and supports a future‑ready force.

Military Justice Modernization Act (Bill C-11)

• In September 2025, the Minister of National Defence introduced An Act to amend the National Defence Act and other Acts (Military Justice System Modernization Act).
• The proposed amendments respond directly to key recommendations made in independent and external reviews conducted by former Supreme Court Justices Louise Arbour and Morris J. Fish, reinforcing the Department of National Defence and the Canadian Armed Forces (CAF) continued commitment of a transparent and trusted system of military justice.
• The proposed legislation would remove CAF jurisdiction to investigate and prosecute Criminal Code sexual offences committed in Canada.
• The proposed legislation seeks to change the appointment process for key military justice authorities (i.e., the Canadian Forces Provost Marshal, the Director of Military Prosecutions, and the Director of Defence Counsel Services) to become Governor-in-Council appointments.
• This legislation also seeks to expand the eligibility criteria for military judges to include non-commissioned members, diversifying the pool of potential candidates. Combined, these amendments aim to bolster the trust and confidence of CAF members, Defence Team members and Canadians in the military justice system.
• This legislative proposal continues the constant evolution and modernization of the Military Justice System to meet the CAF needs to maintain discipline, efficiency and morale.
• Bill C-11 concluded study stage at the Standing Committee on National Defence in early February 2026, and clause-by-clause consideration concluded on February 4.
• The final Report with proposed amendments was tabled back to the House on February 9. A timeline for debates and votes in the house has not yet been determined.

Meeting Canada’s Defence Spending Commitments – Semi-Annual Report (December 2025)

[Redacted]

Mission 5 Results Report (January 2026)

Protecting Canadian sovereignty and keeping Canadians safe by strengthening the Canadian Armed Forces (CAF), securing our borders, and reinforcing law enforcement.

Key Actions

1. Existing

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2. Proposed New Key Actions

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Key Results

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(3) (DND) Hit 2% Defence Spending: As of 31 December, Defence has spent $29.75 billion, representing approximately 64% of the total $46.74 billion budget. ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

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(*) (DND) Defence Industrial Strategy: Through National Defence’s investments of over $3B in early initiatives, including the launch of BOREALIS innovation pilots and Innovation for Defence Excellence and Security (IDEaS) challenges, Canada is strengthening its industrial foundation as part of a whole-of-government approach. These efforts are designed to drive innovation, enhance long-term capabilities, and align with broader national economic and security objectives.

Areas Requiring Focus (monitoring)

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• ███████████████: (DND) Hit 2% Defence Spending: While National Defence is on track to meet the Prime Minister’s June 2025 commitment to increase Canada’s defence spending to 2% of GDP, close monitoring is required to ensure that spending is executed before the end of the fiscal year and that funding keep pace with a shifting GDP forecast. In December 2025, NATO increased the GDP forecast to $3,181B, raising the 2% target to $63.5B. While National Defence remains on track to meet the new $63.5B defence spending target, another increase in the NATO GDP forecast is expected before the June 2026 NATO Summit. There are indications this could increase the 2025 target to $64.8B. ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

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Activities in Development and In Delivery

In Development

Hit 2% Defence Spending

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Defence Industrial Strategy

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• Release a Defence Industrial Strategy: A draft Defence Industrial Strategy is developed and pending approval, setting the foundation for Canada’s long-term defence industrial capability alignment.
• Establish a Structural Approach to Engagement: DND is developing a multi-year strategic engagement plan to institutionalize coordinated stakeholder engagement and streamline information-sharing across government and industry.

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Annex A - Results Indicators

Defence Implementation

Phased Approach to Mission 5 Results

This submission includes a small, select set of key performance indicators, reflecting areas with mature data sufficient to provide a reliable view of Misson 5 implementation. Additional indicators may be presented over time, focusing on areas of strategic importance and relevance to strengthening the Canadian Armed Forces and operational readiness, including key capabilities such as personnel, training, equipment acquisition, and sustainment.

Outcome: The Canadian Armed Forces are ready, resilient, and relevant to defend Canada in an increasingly unpredictable security environment

1. Objective: Hit 2% Defence Spending

   1. National Defence is on track to meet the Prime Minister’s June 2025 commitment to increase Canada’s defence spending to 2% GDP by March 2026. █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ Close monitoring is required to ensure that spending is executed before the end of the fiscal year and that funding keeps pace with a shifting GDP forecast.

      Figure 1 (a): Proportion of GDP related to core defence spending (Target: 2% by March 2026)

      

      Caption

      A bar and line chart titled “Canada’s Defence Spending Trajectory” shows annual defence spending and its share of GDP from 2022–23 to 2025–26 (forecast). The horizontal axis lists fiscal years, and the vertical axis shows spending in CAD billions up to 80.

      Four blue bars represent total Canadian defence expenditures:

      • 2022–23: $33.7 billion
      • 2023–24: $38.4 billion
      • 2024–25 (estimate): $44.3 billion
      • 2025–26 (forecast): $62.7 billion

      A line above the bars shows defence spending as a percentage of GDP, increasing over time:

      • 1.20% in 2022–23
      • 1.33% in 2023–24
      • 1.47% in 2024–25
      • 2.00% in 2025–26

      The chart illustrates a steady rise in both total defence spending and its share of GDP, with a notable increase projected in 2025–26.

   2. As of 31 January, Defence has spent $33.11 billion, representing 70.83% of the total $46.74 billion budget.

      Figure 1 (b): DND Spending Performance

      [Redacted]

2. Objective: Strengthen the Defence Team Enterprise
   1. Sustain Positive Recruitment and Retention Initiatives to Rebuild the CAF: The Canadian Armed Forces is seeing an increase in recruitment numbers and is on track to reach the Strategic Intake Plan this fiscal year.
      • Regular Force Recruitment:
        • Canada’s 2017 defence policy increased the CAF’s authorized strength to 71,500 Regular Force.

        • As of December 31, 2025, ███████████████████████████████████████████████████

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      • Primary Reserve Recruitment:
        • The Primary Reserve average paid strength is at 24,655, representing an increase of 1,478 compared to the same point last year.

        • The percentage of Primary Reserve positions filled has been steadily increasing throughout FY 2025-26, █████████████████████████████████

      Figure 2 (a): CAF Regular Force and Primary Reserve Force Strength

      [Redacted]

      Note: Projected strength numbers are subject to change and assume stability in the attrition rate.

   2. Increase and improve housing supply for CAF members and their families: CAF housing investments are being delivered as planned and on schedule, with construction of new units on track and renovations exceeding targets.
      • Construction Program:
        • Multi-year construction is underway at nine priority locations (Borden, Edmonton, Esquimalt, Gagetown, Halifax, Kingston, Petawawa, Trenton, Valcartier).
        • As of Q3 FY 2025-26, 48 units are under construction and the first 36 units in Edmonton remain on track for completion by fiscal year end. New unit completions directly expand available housing for CAF members, supporting retention and reducing pressure in high‑demand locations.
      • Renovations:
        • More than 1,250 residential housing unit (RHU) renovations are underway to improve condition, efficiency, and functionality.
        • In FY 2024-25, 502 renovations were completed, significantly exceeding the annual target of 250.

      Figure 2 (b): Annual CAF Residential Housing Units Construction Compared to Plan

      [Redacted]

3. Objective: Close Capability Gaps and Defence Vulnerabilities Faster

   1. Accelerate Canada’s defence acquisition and procurement processes - Major Capital Projects: Over 300 major capital projects will deliver modern interoperable maritime, land, air and sustainment capabilities. These investments strengthen Canada’s defence readiness, enhance sovereignty and deterrence, extend operational reach, and enable the Canadian Armed Forces to defend Canada, meet defence obligations, and contribute to NORAD, NATO, and allied operations in an increasingly complex threat environment. Through these projects, Canada is also strengthening alliances, diversifying defence partnerships, and creating opportunities for Canadian industry.

      In Q3 FY 2025-26, several projects advanced to the next phase. Notably, the Canadian Patrol Submarine Project and Domestic and Arctic Mobility Enhancement moved from Options Analysis to Definition phase and Long Range Precision Strike (Land) and Cyber Defence Decision Analysis and Response moved from Definition to Implementation phase.

      • Canadian Patrol Submarine Project: deliver a new submarine fleet deployable in the Arctic, with extended range and endurance, providing stealth, persistence and lethality as key capabilities.
      • Domestic & Arctic Mobility Enhancement: deliver an amphibious, high-mobility vehicle capable of protecting its occupants from extreme environmental conditions. DND is committed to shortening the Definition phase to the maximum extent possible.
      • Long Range Precision Strike (Land): deliver a long-range precision strike capability providing responsive, 24/7, all-weather, precision-guided indirect fire support to defend the continent, enable a combat-capable Canadian brigade within a NATO or FVEY-led Division to deter adversaries, or to neutralize and destroy adversary high pay-off targets.
      • Cyber Defence–Decision, Analysis and Response: deliver defensive cyber capabilities that improve decision support and the security of DND/CAF networks, including the ability to detect, analyze and respond to threats.

      Additionally, DND advanced the following two initiatives:

      • Canadian Modularized Assault Rifle (CMAR): deliver modern assault rifles systems enhancing awareness, lethality and protection of deployed CAF operators.
        • Instead of proceeding as a traditional project, CMAR was chosen as a pathfinder initiative to develop and prove an asset management acquisition pathway. CMAR’s procurement schedule accelerated and is proceeding as a direct acquisition with Canadian company Colt Canada.
      • Airlift Capability Project – Multi-role Flight Service (ACP-MFS): deliver new aircraft increasing the capacity of the RCAF to support administrative flight services for senior Government of Canada leaders and provide utility flight services in support of CAF operations and missions.
        • DND, in collaboration with the DIA advanced the procurement ACP-MFS and will acquire six aircraft on an accelerated schedule to replace the CC144 Challenger fleet through a streamlined non-competitive procurement with Canadian manufacturer Bombardier.

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DM Priorities, Planning, and Strategy Committee Meeting – Defence Investments (February 2026)

Investing in the Defence of Canada Dashboard

Last Updated: 2026-02-23

2% of GDP Defence Spending Target: $63.5B (December 2025 GDP forecast)

DND Authorities to Date (Supplementary Estimates C): $47.83B

DND has spent $35.49B (74%) of the total budget (as of 20 February)

Planned Other Government Department Spend (including CCG Apr-Sep, DIS, BDC): $16.7B

Meeting the 2% of GDP Target: A Whole-of-Government Effort in Support of Canada’s NATO Commitments

Canada’s NATO Commitment

2% of GDP
(current benchmark)

5% by 2035
(new pledge)

Core Defence (3.5%)

Payments made by the Government of Canada specifically to meet the needs of the CAF, those of Allies, or of the Alliance:

• DND/CAF & OGD defence expenditures; Support to Veterans; Weapons control, peacekeeping, & humanitarian assistance; Intelligence activities; R&D for defence applications; Military assistance to partners; Stockpiling supplies, material, equipment; Industrial mobilization; Dual-use.

Defence- & Security-Related (1.5%)

Whole‑of‑government contributions that enhance national and allied security, including industrial capacity, resilience, cybersecurity/IT, preparedness, Arctic infrastructure, and other eligible security functions outside DND.

Other Government Departments (OGDs)

Overall, OGDs are on track to fully spend or overspend their defence-eligible allocations.

Percentage Forecast Expected to Materialize by Year-End (20 Feb.)

VAC: 100.00%

CSE: 100.00%

HICC: 89.05%

GAC: 100.90%

TBS: 100.15%

SSC: 115.97%

PHAC: 98.39%

PSPC: 97.15%

RCMP: 111.93%

ECCC: 99.53%

CSA: 99.78%

NRCan: 100.20%

ISED: 100.73%

NRC: 100.30%

NSERC: 100.01%

RDAs 98.80%

CSIS: 93.91%

(26% of Total Defence Spending)

Other: $16.7B

DND: $47.83B

Total Forecasted Spend: $64.5B

Plans For Additional Spending

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• ██████████████████

Vote 5

█████████████████████

• ███████████

• ██████████████████

█████████████████████████

• ███████████

• ███████████████████████████████

TBD

███████████████████████

• ███

• ██████████████████

████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Ensuring a Strong Contingency Plan: Clear Triggers & Coordinated Steps for Rapid Implementation

Contingency 1 – ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Contingency 2 – ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

2 March
███████████████████████████████████████████████████

On or before 15 March
████████████████████████████████████████████████

On or before 15 March
██████████████████████████████

Up to 31 March
██████████████████████████████████████████

~ 31 March
████████████████████████████████████████████

Up to 30 April
█████████████████████████████████████

Delivering Results for the Canadian Armed Forces: A Stronger Defence Team Enterprise & Faster Closure of Capability Gaps

Sustain Positive Recruitment and Retention Initiatives to Rebuild the CAF

Authorized Force Strength
Target by 2029 (or sooner)

71,500 Regular Force Members

30,000 Primary Reserve Members

████████████

Regular Force Total Strength: ██████ (as of Jan.31, 2026)

Recruitment Numbers
Fiscal Year 2025-26

████████████████████████████

██████████████████████████████

████████████

Strategic Intake Plan Achieved for Regular Force Members

Increase and Improve Housing Supply for CAF Members and Their Families

Projected Number of Residential Housing Units (RHUs) starts and completions, expenditures (M$)

███████████████████████████████████

█████████████████████████████████████

█████████████████████████████████████

██████████████████████████████████████

████████████████████████████████████

████████████████████████████████████

Projects advancing from Options Analysis to Definition

Canadian Patrol Submarine Project

Domestic & Arctic Mobility Enhancement

Projects advancing from Definition to Implementation

Long-Range Precision Strike (Land)

Cyber Defence – Defence, Analysis, & Response

Accelerated / streamlined procurement initiatives

Canadian Modularized Assault Rifle (pathfinder, direct acquisition with Cold Canada)

Multi-role Flight Service (accelerated non-competitive procurement with Bombardier)

Canada’s Pathway to Spending 3.5% GDP on Core Defence

[Redacted]

███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Updated Gross Domestic Product (GDP) forecasts will inform the available planning space, and a potential downturn in GDP forecasts in the future would reduce the actual 3.5% target.

Changes in forecasted other government departments’ defence-related spending will impact available planning space.

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4 Corners Meeting – Defence Investments (March 03 & 10 March 2026)

Investing in the Defence of Canada Dashboard

Last Updated: 2026-02-27

2% of GDP Defence Spending Target: $63.5B (December 2025 GDP forecast)

DND Authorities to Date (Supplementary Estimates C): $47.83B

DND has spent $36.38B (as of 27 February)

Planned Other Government Department Spend (including CCG Apr-Sep, DIS, BDC): $16.7B

Civilian Compensation and Benefits 25-26 $3.02B 96% $3.15B
Civilian Compensation and Benefits 24-25 $2.29B 82% $2.80B

Fleet and Equipment Sustainment Program 25-26 $3.42B 67% $5.11B
Fleet and Equipment Sustainment Program 24-25 $2.31B 56% $4.15B

Grants and Contributions 25-26 $2.31B 55% $4.16B
Grants and Contributions 24-25 $0.63B 40% $1.59B

Health Services 25-26 $0.45B 79% $0.57B
Health Services 24-25 $0.31B 75% $0.42B

IM/IT 25-26 $0.43B 59% $0.73B
IM/IT 24-25 $0.30B 58% $0.51B

Incremental In-Service Support (ISS) 25-26 $0.64B 67% $0.95B
Incremental In-Service Support (ISS) 24-25 $0.48B 58% $0.83B

Infrastructure & Environment 25-26 $1.73B 76% $2.28B
Infrastructure & Environment 24-25 $1.33B 67% $1.99B

Major Projects 25-26 $9.69B 87% 11.12B
Major Projects 24-25 $5.74B 81% $7.13B

Military Compensation and benefits 25-26 $7.96B 89% $8.96B
Military Compensation and benefits 24-25 $6.47B 83% $7.84B

Military Operations 25-26 $0.57B 60% $0.96B
Military Operations 24-25 $0.55B 59% $0.94B

Other Operating / Minor Capital 25-26 $4.01B 69% $5.83B
Other Operating / Minor Capital 24-25 $2.22B 65% $3.43B

Statutory / Long Term Disability (SISIP) 25-26 $2.15B 76% $2.83B
Statutory / Long Term Disability (SISIP) 24-25 $1.76B 77% $2.29B

Upcoming Announcements

Indo-Pacific Visit: Minister is supporting the PM on visits to India, Australia and Japan. Focus is on trade and defence. (26 Feb-7 Mar)

Polar Max Construction kick-off: Chantier Davie will hold an event to highlight the start of construction of the Canadian Coast Guard’s Polar Icebreaker in Canada. (Québec, QC, 31 Mar)

Arctic Visit: Minister to accompany the PM on a potential infrastructure announcement (12 Mar; date and details TBC).

Contingency Plan Approach

Objective: Fully utilize the resources allocated in DND’s budget.

Actioned Spending Options

Vote 1

██████████████████████████████████

• ███████████████

Vote 5

█████████████████████

• ███████████████

Contingency: In the event spending is projected to fall below the target, DND will activate additional year‑end measures.

Plans for Additional Spending

Vote 1

███████████████████

• ███████████

• ████████████████████████

█████████████████████████████████████████

• █████████████

• ██████████████████

Vote 5

█████████████████████████

• ███████████

• ███████████████████████████████

TBD

███████████████████████

• ███

• ██████████████████

Contingency 1 – ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Contingency 2 – ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

2 March
███████████████████████████████████████████████████

On or before 15 March
████████████████████████████████████████████████

On or before 15 March
██████████████████████████████

Up to 31 March
██████████████████████████████████████████

~ 31 March
████████████████████████████████████████████

3rd week of April
█████████████████████████████████

Up to 30 April
█████████████████████████████████████

Other Government Department Updates

OGDs are on track to fully spend or overspend their defence-eligible allocations.

Percentage Forecast Expected to Materialize by Year-End (20 Feb.)

VAC: 100%

CSE: 100%

HICC: 89%

GAC: 101%

TBS: 100%

SSC: 116%

PHAC: 97%

PSPC: 97%

RCMP: 109%

ECCC: 100%

CSA: 100%

NRCan: 100%

ISED: 101%

NRC: 100%

NSERC: 100%

RDAs: 100%

CSIS: 94%

(26% of Total Defence Spending)

Critical Path

█████████████████
██████████████
█████████████████████████

March

███████████████████████████████████████████████████████████
███████████████████████████████████
█████████████████████████████████████████████████████████████

April

█████████████████████████████████

May

████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

██████████████████████████
█████████████████████████████████
██████████████████████████████

June

████████████████
███████████████████████

Investing in the Defence of Canada Dashboard

Last Updated: 2026-03-06

2% of GDP Defence Spending Target: $63.5B (December 2025 GDP forecast

DND Target Expenditures to Date (Supplementary Estimates C): $46.96B

DND has spent $37.86B (as of 06 March)

Planned Other Government Department Spend (including CCG Apr-Sep, DIS, BDC): $16.7B

Outstanding Expenditures By Vote (as of 06 March)

Vote 1: $26.08B

O&M: $10.20B (81%)

SWE & Mil: $11.00B

$4.88B (Remaining)

Vote 5: $14.89B

Accrual: $9.42B (81%)

A-Base: $2.59B

$2.88B (Remaining)

Stat: $2.25B

$1.77B (79%)

Vote 10: $3.15B

$2.40B (77%)

$0.75B (Remaining)

Vote 15: $0.59B

$0.47B (79%)

$0.12B (Remaining)

NATO 2% Spending Target Communications

Approach: Recommending a proactive approach with an MND or PM announcement event highlighting the Government’s success in reaching the NATO 2% target.

████████████████████████████████████████████████████████████████████████████████████

Next Steps:

• DND is developing a narrative to communicate the impact of defence investments for Canadians, with a focus on concrete and impactful results

Contingency Plan Approach

Objective: Fully utilize the resources allocated in DND’s budget.

Actioned Spending Options

██████████████████████████████████

• ███████████████

██████████████████████████████████████████

• ███████████████████████████

█████████████████████

• ███████████████

██████████████████████

• ███████████████

Contingency: If spending is projected to fall below the target, DND will activate additional year‑end measures.

Plans for Additional Spending

██████████████████████████

• ███████████

• █████████████████████

██████████████████████████████████████████████████████

• █████████████

• ██████████████████

Contingency 1 – ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Contingency 2 – ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Key Dates

Month of March (weekly)
███████████████████████████████████████████████████

By 13 March
████████████████████████████████████████████████

By 13 March
██████████████████████████████████

~ 31 March
████████████████████████████████████████████

Up to 31 March
█████████████████████████████████████

3rd week of April
█████████████████████████████████

Up to 30 April
█████████████████████████████████████

Canadian ████████████████████████████████████

• NATO sets standard defence spending definitions and requires biannual reporting for consistency across Allies.
• Canada meets this requirement by consolidating Department of National Defence data with inputs from departments and agencies.

• █████████████████████████████████████████████████████████████████████████

██████████████████████████████████

• █████████████████████████████████████████████████████████████████████████████████████████

• ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

██████████████████████████████████████████████

• ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Critical Path

█████████████████
██████████████
█████████████████████████

March

███████████████████████████████████████████████████████████
████████████████████████████████████████████████████████████

April

█████████████████████████████████
███████████████████████████████████

May

████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

██████████████████████████
█████████████████████████████████
██████████████████████████████
████████████████

June

███████████████████████

Back to top

A proposal for a ███████████████████████████████████████████████

███████████████████████████████████████████████████████████████████████████████████████

• In June 2025, the Prime Minister committed to NATO’s Defence Investment Pledge at the NATO Summit. This committed Canada to spend 5.0% of GDP on defence by 2035, including 3.5% of GDP on “core defence” and 1.5% of GDP on “defence- and security-related investments”.
• Core defence is defined by NATO as: “payments made by a national government specifically to meet the needs of its armed forces, those of Allies, or of the Alliance”.
• As a member of NATO, Canada must report its defence expenditures biannually using NATO’s standardized guidance, ensuring consistency and comparability across Allies. NATO’s definitions have been in place since the early 1950s and were most recently updated in 2018.

• ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Approach

• ███████████████████████████████████████████████████████████████████████████████████████████████████

Category 1: ██████████████████████████████████████████████████████

• Inclusions from the Ministry of Defence – all expenditures in the “Ministry of Defence” portfolio are included in NATO reporting. Canada’s equivalent is the Defence Portfolio: the DND (and Canadian Armed Forces), Communications Security Establishment, Military Grievance External Review Committee, and Military Police Complaints Commission.

• ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

  1. ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

  2. █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

  3. ██████████████████████████████████████████████████████████████████████████████████████████████████

  4. ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

  5. ███████████████████████████████████████████████████████████████████████████████████████████

  6. █████████████████████████████████████████████████████████████████████████████████████████████████████

  7. █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Category 2: ██████████████████████████████████████████████████████████

• █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Category 3: ███████████████████████████████

• ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Current and Potential ‘Core Defence’ Inclusions

[Redacted]

Note: DND consulted NATO staff and Allies, including UK, France, Netherlands, Italy, Norway, as well as several other partners.

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Discussion Paper on Authorities and Measures to Accelerate Defence Spending (Draft)

Purpose

This paper proposes changes to current authorities, policies and processes to fast-track defence spending. Global security challenges require greater agility for the Department of National Defence (DND) to rapidly implement this government’s direction to rebuild, rearm and reinvest in the Canadian Armed Forces (CAF). Reaching the 2% defence spending target in FY 2025-26, and growing the proportional spend in future years, requires a whole-of-government effort to accelerate approvals, allowing DND more flexible access to funding and efficient use of authorized resources. DND’s objective is to act quickly on decisions once made by the Prime Minister and Cabinet while ensuring transparency and maintaining central agency and Parliamentary oversight.

Context

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There is an opportunity to build on the innovation that enabled rapid decision-making over the last eight months. With support from the Treasury Board Secretariat (TBS), the Privy Council Office (PCO), Finance Canada, and Public Services and Procurement Canada (PSPC), significant progress has already been made to break down institutional barriers and enable this year’s rapid increase in defence spending, including flexibility in accessing funding and spending authorities. In addition, there are already several measures underway within DND to increase efficiencies and enable faster delivery of the Defence mandate. For a more detailed list of measures, please see Annex A.

That said, further streamlining across the system is required, as is greater consideration of managed risk to ensure that controls and process do not cause delays that ultimately cost more than the value for money they are intended to assure. The proposals below outline changes to processes and authorities that could be executed in the near term to enable faster, more efficient delivery of the defence mandate. Recognizing process changes must be phased to match implementation capacity, the discussion paper ends with a list of additional recommendations that require further development.

Proposed Measures to Fast-Track Spending

High Impact Proposals to Enable Near-Term Spending

[Redacted]

Amplifying Ongoing Change Initiatives

[Redacted]

Proposals in Development

[Redacted]

Annex A: Measures Underway to Improve Efficiencies

Internal Measures to Improve Efficiencies

DND is undertaking internal efficiency measures to enable faster delivery of its mandate, including, but not limited to:

DND is implementing internal efficiency measures to enable faster delivery of the defence mandate, including: increasing internal delegations for contracting and other authorities; moving away from process-heavy, risk-averse governance; bundling projects; leveraging new procurement tools; and shifting to a more programmatic approach through the Continuous Capability Sustainment program. New capital acquisition governance pathways have also been added to the Capital Investment Programme policy suite, including programs (recently applied to Arctic Over-the-Horizon Radar) and direct acquisition (recently applied to the Canadian Modular Assault Rifle acquisition).

There are additional internal efficiency measures that DND will prioritize over the next year, including: increasing departmental costing capacity and greater use of programmatic procurement authorities (coordinating related projects under a single program) for infrastructure projects.

DND has also been working closely with TBS, Finance Canada, and PSPC to enable more flexible access to funding and to accelerate approvals and processes. TBS has created flexibilities in delegations, policies and processes to further expedite approvals.

In addition, DND is:

• Increasing internal delegations of contracting authority to improve efficiency;
• Moving away from process-heavy, risk-averse governance to outcome-focused, streamlined processes and governance;
• Working to rapidly adopt the new streamlined approach to Treasury Board (TB) submissions;
• Undertaking a Behaviour-Informed Approach to Optimizing Procurement for Defence Readiness, by the Privy Council’s Offices Impact and Innovation Unit, to identify process improvements within the department to accelerate the acquisition of equipment for the Canadian Armed Forces (CAF);
• Working with the newly created Defence Investment Agency (DIA) to adopt more flexible contracting models;
• Bundling minor capital infrastructure projects nationally to reduce contracting overhead;
• Initiatives to accelerate infrastructure delivery, such as new procurement tools through Defence Construction Canada (DCC) and rapid construction of multi-purpose assets;
• Through Continuous Capability Sustainment, shifting to a more programmatic approach to accelerate the operationalization of new capabilities and providing a more responsive incremental technology insertion for in-service platforms. Further work is required to determine a sustainable source of funds;
• Clarifying contracting practices to ensure agility and responsiveness in support of deployed operations;
• Strengthening governance for transfer payment programs;
• Implementing the Defence Digital Strategy for agile digital service delivery and adaptive funding and procurement processes; and
• Exploring the adoption of AI tools to reduce human workload across submission stages, including document processing, data validation, and initial compliance checks.

There are additional internal efficiency measures that DND will prioritize over the next year, including:

• Increasing departmental costing capacity, for example by ADM (Infrastructure and Environment) implementing in-house costing for projects $25-$100M; and,
• Greater use of programmatic procurement authorities for infrastructure projects, enabling multi‑year, multi‑phase site programs versus one‑off project approvals.

DND has also been working closely with TBS, Finance Canada and PSPC to enable more flexible access to funding and to accelerate approvals and processes.

TBS has created flexibilities in delegations, policies and processes, for example:

• Prioritizing high-risk items and delegating lower-risk approvals to departments, allowing Defence to move faster;
• Low and medium real property transactions are now within the Minister of National Defence’s authority;
• New advance contracting authorities have been used to support large capabilities, such as Arctic Over-the-Horizon Radar;
• TBS introduced a shorter TB submission template and is limiting reviews on low-risk submissions;
• TBS introduced changes in TB policy to reduce the costing estimates requirements and remove the requirement to seek project approval at the early definition phase; and,
• TBS has recently made inflation increases to contracting authority limits.

Further, DIA now has unlimited contracting authority for high risk and high complexity defence procurement subject to advance TB approval of the procurement and negotiation strategy and PSPC has expanded its risk-based contracting authorities.

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Comprehensive Expenditure Review

ADM: Jonathan Moor, CFO
Unclassified

Memorandum to the Minister

For Decision

Subject

Comprehensive Expenditure Review

Summary

This memorandum seeks your approval of the Department of National Defence’s (DND) Comprehensive Expenditure Review (CER)implementation plan, which identifies $459 million in ongoing savings beginning 1 April 2026. Treasury Board Secretariat (TBS) requires Ministerial endorsement before briefing the Treasury Board (TB) and concluding the process. It is recommended that you approve and sign the Ministerial Attestation Letter (Annex B).

Time Frame

A decision is requested by 27 August 2025 to align with TBS’s government-wide CER exercise.

Background

In July 2025, the Government announced the CER, requiring all departments to identify ongoing savings beginning 1 April 2026. For DND, the target is $459 million in ongoing reductions, representing two percent of Vote 1 and Vote 10 reference levels. While most departments face reductions of 7.5 to 15 percent, DND’s more modest requirement reflects recognition of Defence priorities, including Canada’s NATO spending commitment.

To support enterprise-wide savings objectives, DND will also absorb the $2 million savings target assigned to the Military Police Complaints Commission (MPCC) and the Military Grievances External Review Committee (MGERC). Ministerial approval is required for DND’s plan to be submitted to the Treasury Board in Fall 2025.

Analysis

The Department’s CER plan achieves the required savings while protecting operational readiness and aligning with government priorities. ██████████████████████████████████████████████████████████████, providing flexibility to manage implementation risks. █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Absorbing MPCC and MGERC’s reductions ensures their statutory mandates are protected. Both organizations face rising workloads and limited baselines, making direct cuts impractical without impacting service delivery.

████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ This approach ensures the CER plan not only meets fiscal requirements, but also advances Defence priorities, supports NATO obligations, and contributes to the Government’s Build Canada Strong strategy.

Risks

There are three principal risks associated with this plan.

• ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ Any one-time costs incurred can be managed within existing cash flow.

• ████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ These risks can be managed through early engagement and transparent communication of long-term plans, and clear alignment with defence priorities and NATO commitments.

Recommendation

████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Stefanie Beck
Deputy Minister

General M.A.J. Carignan
Chief of the Defence Staff

Attachment

• Annex A: CER Implementation Plan Placemat
• Annex B: Ministerial Attestation Letter

Comprehensive Expenditure Review: Proposed Savings

Organization: Department of National Defence

Submission to the President of Treasury Board and the Minister of Finance

I hereby submit an organizational context summary in Annex A, the proposal(s) listed in Annex B, with fiscal impacts listed in Annex C, to meet the targets for reducing spending that were communicated by the Treasury Board of Canada Secretariat for the organization.

I confirm that the organization undertook a thorough review of its programs and spending, giving due consideration to all credible evidence at its disposal, to identify where there might be duplication, lower value for money, or programs and processes that are not working as well as they should.

I also confirm that the organization’s:

• Chief Financial Officer (or equivalent) has affirmed the accuracy of the financial and human resource information included in the proposals
• Head of Evaluation and Head of Performance Measurement have been consulted on the supporting evidence presented in the proposals

I understand that a Cabinet committee will consider these proposals and make recommendations for the Prime Minister’s approval. I understand that each organization’s approved savings from the Comprehensive Expenditure Review will need to be reflected in their 2026-27 Main Estimates and Departmental Plans.

 

Minister’s signature / Date
The Honourable David McGuinty

Annex A: Organizational Context

As defence continues to be a priority area for investment, the Department of National Defence’s (DND) Comprehensive Expenditure Review (CER) implementation plan has been developed to respect the spirit and intent of the government-wide exercise while protecting operational readiness.

The plan identifies ongoing savings that can be reinvested within the Defence Programme to support Canadian Armed Forces (CAF) priorities, meet NATO’s two-percent commitment, and contribute to the Government’s Build Canada Strong strategy.

The CER implementation plan is structured in two parts.

Part I – CER Permanent and Ongoing Savings

DND will focus on:

• Divestment of older fleets that are costly to operate or no longer meet CAF capability requirements;

• ██████████████████████████████████████████████████████████████████████████

• Modernization of processes, tools, and business practices to streamline governance; and
• Real property efficiencies through divestiture, demolition, and energy performance contracts

In addition, DND will absorb the CER reductions assigned to the Military Grievances External Review Committee (MGERC) and the Military Police Complaints Commission (MPCC). These organizations face small baselines and growing oversight workloads. Absorbing their reductions within DND’s larger plan ensures their statutory mandates continue to be delivered without disruption.

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█████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

• ████████████

• ██████████████████████████████████████

• ███████████████████████████

• █████████████████████████████████████████████████████████████████

• ██████████████████████████████

• █████████████████████████

In developing this plan, DND examined ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Annex B: List of Saving Proposals

Organization: Department of National Defence

Proposals

• #1 Fleet Divestment Strategy

• █████████████████████████████████████

• #3 Governance and Internal Services Optimization
• #4 Optimized Property Footprint Savings
• #5 Energy Performance Contracts Systems Efficiencies

Annex C: Summary of Fiscal Savings

2026–2027: ████████████
2027–2028: ████████████
2028–2029: ████████████
Total: ██████████████
Ongoing: ████████████

Target: ██████████████████████████████████████████████████████████████████████████

Total Existing Funds (saving): ██████████████████████████████████████████████████████████████████████████

Total Operating Spending and EBP: ██████████████████████████████████████████████████████████████████████████

Total Transfer Payments: $0 | $0 | $0 | $0 | $0

Total Capital Expenditures and EBP: ████████████████████████████████████████████████████████████████████

Fiscal Framework Savings: $0 | $0 | $0 | $0 | $0

Total: ██████████████████████████████████████████████████████████████████████████

█████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Note 2 – Ongoing values are calculated as the average of target savings from FY30 to FY36.

Minister of National Defence

Ottawa, Canada  K1A OK2

The Honourable François-Phillippe Champagne, P.C., M.P. Minister of Finance
Department of Finance Canada 90 Elgin Street
Ottawa, Ontario  K1A 0G5

The Honourable Shafqat Ali, P.C., M.P. President of the Treasury Board
Treasury Board of Canada Secretariat 90 Elgin Street
Ottawa, Ontario  K1A 0R5

Dear Colleagues:

On behalf of the Defence Team, I am providing the Comprehensive Expenditure Review (CER) proposals for the Department of National Defence (ONO), the Canadian Armed Forces (GAF), and the Communications Security Establishment Canada (CSE). A proposal from the Canadian Coast Guard (CCG) will follow within 60 days.

███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ Savings will be directed to priorities such as CAF housing, the small arms annual acquisition program, national procurement sustainment, priority military operations, and environmental remediation. This approach ensures the CER plan not only meets fiscal requirements, but also advances Defence priorities, supports NATO obligations, and supports Canadian civilian and defence industries.

█████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

In support of CSE’s submission, I would also like to provide insight into the unique and critical role of the CSE in the Government of Canada. CSE’s work is integral to the security of the Government of Canada - and our success is reliant on other government organizations and partners domestically and internationally. As we seek to achieve the objectives of the GER, it is important not to lose sight of these key interdependencies and the ultimate objective of maintaining national security and sovereignty in an insecure world.

Due to its intelligence, cyber security, cyber operations, information assurance and technical assistance mandates, CSE’s reach is far and wide across the Government of Canada. CSE works closely with the Canadian Security Intelligence Service, Shared Services Canada, the Royal Canadian Mounted Police, the Canadian Border Services Agency, the Canadian Armed Forces, and Global Affairs Canada amongst others. CSE has an effect greater than its size - its capabilities, on a daily basis, empower military personnel in active operations, support officers to disrupt criminal activities, allow officials to use secure communications to exchange sensitive information and protect their insights from cyber-attack, enable Cabinet members to communicate their confidences, and inform decision-makers to make economic and national security decisions based on the best interests of Canada.

Across Canada, cyber security incidents have become increasingly disruptive, and CSE plays a critical role in protecting, informing and empowering critical infrastructure and organizations nation-wide. CSE responded to 1,400 cyber security incidents last year amongst critical infrastructure providers and sent pre-ransomware notifications to over 300 Canadian organizations, saving enterprises thousands of dollars, and as a result, supporting the Canadian economy. CSE is a unique trusted authority and capable leader in cyber security, relied upon by organizations within and outside the government to advise on cyber threats and respond to cyber incidents. For example, the upcoming FIFA World Cup is a type of high profile, multi stakeholder, complex event for which CSE leadership on cyber security is sought to ensure that Canada is, and appears to be, a safe sovereign capable nation state in the face of sophisticated adversaries and complex threats.

CSE is one of, if not the most, technologically driven organizations in the Government of Canada. It must be in order to deliver on its mandate. ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

█████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

Time after time, CSE has not awaited a review imperative to reprioritize, realign, seek efficiencies and leverage technology. Just last year, CSE received funding to expand Canada as a Cyberpower. █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ The effectiveness of this initial capability was recognized in a new investment to enable an enduring and evolved capability. CSE also received funding to support the implementation of the Defense Policy Update (Our North, Strong and Free) in recognition of the need to enable military power into the future with signals intelligence capabilities of the future. This investment was based on a robust assessment that implementation was not possible within existing resources, and in light of the increasing cost of the hardware, software and talent required to develop the necessary capabilities.

██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████ Across the departments who will continue to need to leverage large amounts of data in real-time to protect Canada, █████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

CSE continues to develop further opportunities to ensure that government operations are efficient, effective and able to counter evolving threats. ███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████, CSE supports the entirety of the Canadian national security and intelligence apparatus and seeks to improve it wherever and whenever possible. Currently, CSE is engaged with other organizations to ensure efficiency and effectiveness of responses to cyber incidents ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████

██████████████████████████████, as well as to achieve CSE mandate objectives and intelligence priorities, CSE relies on the ability of key partners in government to be able to design, deliver and innovate without undue constraints. Procurement and Public Services Canada and Shared Services Canada are examples of departments integral to timely procurement of software and hardware needed to uplift our capabilities while supporting domestic industry. I hope that we will seek to ensure a post CER environment in which expenditure reductions do not undermine mandate aligned investments.

I provide this context not to limit the potential of the CER but to ensure the review is informed by operational necessities, an understanding of the evolving technological landscape and an appreciation of the threat environment in which we must navigate to succeed as a government. I appreciate your consideration of these matters.

Sincerely,

August 2025

The Honourable David J. McGuinty, P.C., M.P.
Minister of National Defence

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Overview of Canada’s Defence Policy Framework

Canada’s defence policy is founded on three enduring roles for the Defence Team

Canada’s 2024 defence policy, Our North, Strong and Free (ONSAF), outlines investments that provide the Defence Team with the tools and capacity they need to:

• defend Canada and assert Canadian sovereignty in the Arctic
• defend North America
• advance Canada’s global interests and values while contributing to international security around the world, particularly in the Euro-Atlantic and Indo-Pacific regions

ONSAF

Strong at Home

• Maintain a military ready and able to defend Canada, assist Canadians, and respond whenever and wherever needed

Secure in North America

• Bolster our continental defences in partnerships with northern stakeholders, NORAD, and the United States

Engaged in the World

• Strengthen Canada’s contributions to a free and open, inclusive and stable international order, based on the rule of law

Defence policy is grounded in the threat environment and recognizes that the world has grown increasingly unstable and dangerous

A Changing World…

• The destabilizing impacts of climate change are increasing operational demands, and exposing our Arctic to new threats
• Possibility of conflict between major powers in critical regions of the world increases tension and risk
• New technologies have changed the character of conflict and complicate our national security interests

…Pulling Canada in Many Directions

• Defending Canada, the Arctic, and North America, in partnership with the US, remains our priority
• We must be ready to support our NATO Allies from a position of strength
• Stability and security of the Indo-Pacific will define Canada’s future prosperity and security

ONSAF places particular emphasis on defending the Arctic and its approaches – significantly improving Canadian Armed Forces awareness of threats, presence, mobility, reach and responsiveness across the region, and building striking power to deter adversaries and keep threats farther from our shores.

Our North, Strong and Free is focused on credible deterrence at home and in North America, with a particular emphasis on the Arctic and its approaches

Issues

A changing landscape, with increasing:

• Foreign commercial and military activity
• Foreign direct investment
• Espionage (sea and from space)
• Illegal shipping and fishing
• Climate change hazards to infrastructure and increasing operational demands
• Search and rescue

More interest from adversaries…

• China seeks to become a “polar great power” by 2030 and intends to play a larger role
• Russia continues to modernize and build up its military presence in their Arctic, investing in new bases and infrastructure

…and Allies and Partners

• US, Sweden, Finland, Denmark, Norway, UK are increasing their commitments to the Arctic

Key areas for investment:

• enforce our sovereignty
• control our waters and airspace, and manage our resources
• respond to natural disasters, search and rescue
• monitor and defend our territory

New investments deliver:

• Increased presence
• Enhanced reach in the North on land, sea, and in the air
• Improved communications and awareness across the region
• Better ability to respond to emergencies and disasters

Summary of initiatives in the North:

• A fleet of airborne early warning aircraft to detect, monitor and respond to incursions in our airspace
• A network of northern operational support hubs
• Underwater sensors to detect submarines and to conduct surveys of ocean floors
• A satellite ground station in the Arctic
• A more modern, mobile and effective tactical helicopter capability
• Submarines; new all-terrain vehicles adapted to snow, ice and tundra; and enabling the Arctic and Offshore Patrol Ships to operate helicopters at sea

It also commits to working with allies to defend the rules and principles that govern a peaceful and prosperous international order

Canada’s extensive relationships are a comparative advantage, and we will use this advantage to remain ahead of our adversaries.

Canada is committed to safeguarding an international system defined by freedom, openness, stability and the rule of law, by:

• Responding to climate change and its consequences for Canada’s sovereignty in our North
• Deterring aggression, wherever and whenever it emerges
• Addressing implications of the rapid evolution of technology.

Canada’s unique geography requires that we be capable of responding to threats across three regions: the Arctic, the Euro-Atlantic, and Indo-Pacific.

In partnership with our closest ally, Canada continues to modernize NORAD, and has invested $38.6B to ready NORAD for the 21st century.

Through Operation Reassurance, Canada works to deter Russia and defend NATO.

Under the Indo-Pacific Strategy, Canada is committed to presence and engagement with its partners in the region, in order to confront China’s disruptive behavior.

Our North Strong and Free is part of an evolution of Canada’s defence policies and strategies

• 2017 Strong Secure Engaged +$553B cash over 20 years
• 2022 NORAD Modernisation +$87B cash over 20 years
• 2024 Our North Strong and Free +$104B cash over 20 years
• 2025 – 2% of GDP in 25/26 with a commitment to 5% by 2035
• Prime Minister commitment to update Canada’s defence policy to reflect both today’s and tomorrow’s threats, informed by experts and the experience of allies and partners, including Ukraine (June 2025)

Since 2017, defence policies and strategies have funded over $250B in new capabilities and infrastructure

SSE 2017 (Cash over 20 Years)

• F35 Fighter Jets × 88 ████████

• River Class Destroyers up to 15 ████████

• P8 Poseidon Multi-Mission Aircraft up to 16 ████████

• CC330 Husky Tanker Transport Aircraft × 9 ███████

• Light Armored Vehicles ████████

• 20 × Army Logistics Vehicle Projects ███████

• Special Operations Equipment ███████

NORAD MOD 2022 (20 Years)

• Northern Basing Infrastructure ████████

• F35 Fighter Jet Infrastructure ███████

• Modern Command & Control Info Systems ███████

• Enhanced Surveillance from Space ███████

• Enhanced Satellite Communications Project – Polar ████████

• Long Range Air to Air Missiles ███████

• Polar Over the Horizon Radar ███████

ONSAF (20 Years)

• Tactical Helicopters ████████

• Renewing Defence Infrastructure ████████

• Halifax Frigate Sustainment ████████

• 30 Day Ammunition Supply ███████

• Airborne Early Warning Aircraft ███████

• Worldwide Satellite Comms ███████

• Northern Operational Support Hubs ███████

2% 2025 (20 Years)

• Arctic Over the Horizon Radar ████████

• Counter Drone Program ███████

• Land Long Range Precision Strike ███████

• Land Armored Vehicles ███████

• Joint Support Ships × 2 ████████

• Light Utility Vehicles ███████

• Ground Based Air Defence ███████

Overview of Defence Policy Pivot (DPP)

[Redacted]

Department of National Defence and Canadian Armed Forces Footprint

Canadian Armed Forces (CAF) Disposition

Caption

CAF Disposition

• Regular Force
• Reserve Force
• Canadian Rangers

CAF Military Installations

Caption

Legend

Royal Canadian Navy

• CFB Cabot
• CFB Esquimalt
• CFB Halifax

Canadian Army

• CFB Edmonton
• CFB Wainwright
• CFB Suffield
• CFB Shilo
• CFB Bagotville
• CFB Valcartier
• CFB St-Jean
• CFB Montreal
• CFB Petawawa
• CFB Gagetown
• CFB Borden
• CFB Trenton
• CFB Kingston

Royal Canadian Air Force

• CFS Alert / FOLS
• Inuvik FOL
• Yellowknife FOL
• 4 Wing Cold Lake
• 17 Wing Winnipeg
• 19 Wing Comox
• Iqaluit FOL
• 5 Wing Goose Bay
• 9 Wing Gander
• 3 Wing Bagotville
• 22 Wing North Bay
• 16 Wing Borden
• 8 Wing Trenton
• 1 Wing Kingston
• 12 Wing Shearwater
• 14 Wing Greenwood
• 15 Wing Moose Jaw

The Defence Team is comprised of CAF members and civilians of the Department of National Defence.

Represented in more than 3,000 communities across Canada, the CAF have a significant presence in every province and territory and an authorized strength of up to:

• 71,500 Regular Force;
• 30,000 Primary Reserve Force; and
• 5,640 Canadian Rangers

And an actual strength of:

• 66,361 Regular Force;
• 24,794 Primary Reserve;
• 4,845 Canadian Rangers;
• ~3,000 Junior Canadian Rangers;
• 5,885 Cadet Organizations Administration and Training Service; and
• ~60,000 Cadets

Overview of Defence Public Servants

Caption

Demographic Highlights

34,640 Public Servant Population

92% Indeterminate Employees

47.3 Average Age of Indeterminate Employees

28% Public Servants Working in the Commands (CA, RCAF, RCN)

11% Public Servants Currently Eligible to Retire

Employment Equity Representation

43% Women
Percentage of Goal Met: 93%

11% Visible Minorities
Percentage of Goal Met: 57%

6% Persons with Disabilities
Percentage of Goal Met: 46%

3% Indigenous Peoples
Percentage of Goal Met: 92%

March 2024

Public Servant Volatility

Entries: 10.2%
Exits: 7.5%
Promotions: 7.8%
Transfers: 4.6%

5-year rates (Indeterminate Tenure)

1 | 42 | 3,072 | 1,820 | 196 | 908 | 4,653 | 3,683 | 190 | 1,092 | 3,708 | 12 | 15,263 (NCR)

44% of Public Servants work in the NCR

L1

CMP: 4,562 | 13%
RCN: 4,437 | 13%
ADM (MAT): 4,184 | 12%
CA: 3,616 | 10%
ADM (IE): 3,601 | 10%

Representation of Top 5 Largest

Classifications

AS: 7,522 public servants 22% of PS workforce
CR: 3,236 public servants 9% of PS workforce
IT: 3,023 public servants 9% of PS workforce
GL: 2,405 public servants 7% of PS workforce
GS: 2,336 public servants 7% of PS workforce

Union

PSAC: 19,663 57%
PIPS: 7,995 23%
DTLC: 1,489 4%
CAPE: 1,102 3%
ACFO: 902 3%

Indeterminate and term > 3 months

As of end of: February, 2026

State of the Canadian Armed Forces

[Redacted]

Canadian Armed Forces Key Fleets

^{Footnote 13}

Royal Canadian Navy

HALIFAX – CLASS
Multi-role frigate
(12 ships)

HARRY DEWOLF – CLASS
Arctic and offshore patrol vessel
(6 ships)

KINGSTON – CLASS
Maritime coastal defence vessel
(4 ships)

VICTORIA – CLASS
Patrol submarine
(4 submarines)

REPLENISHMENT CAPABILITY
(1 leased ship)

PROTECTEUR – CLASS
Auxiliary oiler replenishment vessel
(1/2 ships – Launched in December 2024 with anticipated delivery to DND Summer 2027)

Canadian Army

LEOPARD 2
Main battle tank
(72 vehicles)

LIGHT ARMOURED VEHICLE 6
Infantry fighting vehicle
(545 vehicles)

TACTICAL ARMOURED PATROL VEHICLE
Wheeled combat vehicle
(478 vehicles)

MEDIUM SUPPORT VEHICLE SYSTEM
Medium-capacity logistics vehicle
(1,572 vehicles)

HEAVY LOGISTICS VEHICLE WHEELED
Heavyweight logistics vehicle
(614 vehicles)

M777 HOWITZER
Lightweight field artillery weapon
(614 units)

Royal Canadian Air Force

CF-188 HORNET
Multi-role fighter aircraft
(79 aircraft)

CP-140 AURORA
Long-range patrol aircraft
(10 aircraft)

CC-130J/H HERCULES
Long-range patrol aircraft
(17 CC-130J and 12 CC-130 H aircraft)

CC-177 GLOBEMASTER III
Strategic airlift transport
(5 aircraft)

H-148 CYCLONE
Maritime helicopter
(27 aircraft)

CH-146 GRIFFON
Tactical transport helicopter
(85 aircraft)

CH-147F CHINOOK
Multi-mission helicopter
(14 aircraft)

CC-295 KINGFISHER
Search and rescue aircraft
(15/16 aircraft)

CC-330 HUSKY
Strategic multi-role tanker transport
(5/9 aircraft)

Chief of the Defence Staff and Deputy Minister Directive for the Delivery of Ready, Resilient, and Relevant Forces

Summary

• The Chief of the Defence Staff and Deputy Minister Directive for the Delivery of Ready, Resilient, and Relevant forces provides unified direction to direct and cohere the implementation of defence policy initiatives and areas of work.
• 14 Key Tasks across three lines of effort serve to prioritize activities, inform resource allocation, assign responsibility, and set the basis to measure and report on performance in achieving these objectives that are oriented towards two major outcomes – strengthening the institutional foundation of Defence and detecting, deterring, and defeating new and accelerating threats to Canada.
• This evergreen direction also lays the foundation for future growth and a path to spending 2% of Gross Domestic Product on defence.

Background

• The Chief of the Defence Staff (CDS) and Deputy Minister (DM) Directive for the delivery of Ready, Resilient, and Relevant Forces (February 2025) provides unified direction to implement signature defence policy initiatives and areas of work. Where defence policy sets out the objectives (ends) and provides the resources for their implementation (means), the directive sets out the ways in which they will be implemented. In so doing, it prioritizes tasks, informs resource allocation, assigns responsibility to Level 1 organizations, and sets the basis for a performance management framework.
• The directive sets out a vision where by 2030, Canada will have ready, resilient, and relevant lethal fighting forces capable of detecting, deterring, and defeating threats to Canada with a focus on North America and its approaches, and through the Arctic, Euro-Atlantic, and Indo-Pacific regions as our priority theatres.
• To realize this vision, priority efforts are described across three lines of effort: first, Strengthening the Defence Team; second, Delivering Operations and Enhancing Readiness; and third, Modernizing our Forces and Institution. 14 Key Tasks populate these lines of effort and contain cross-cutting initiatives deemed most essential to realizing the vision by 2030. The two ultimate outputs of this work are to strengthen the institutional foundation of defence and detect, deter, and defeat new and accelerating threats to Canada (see Annex A for the Ready, Resilient, Relevant framework).

Considerations

• To ensure prioritized and accelerated delivery of the key tasks, the Vice Chief of the Defence Staff will provide amplifying guidance on the sequencing, timelines, resource allocation and interdependencies amongst the 14 Key Tasks.This guidance will be kept evergreen as work progresses and will form the basis for an effective performance management regime to ensure accountability and results.
• Over the longer term, this guidance may be absorbed into departmental governance mechanisms to create the intended effect, including business planning that directs tasks, allocates resources, and measures performance over time.
• The directive also lays the foundation for future growth and a path to spending 2% of gross domestic product (GDP) on defence. Reinforcing the foundation of Defence – our people, readiness, forces and institution – is necessary in order to be sustainable and resilient in developing, generating, managing, sustaining, and employing the forces required to meet the Defence vision and grow the force towards the 2% of GDP commitment.
• As new initiatives or signature programs are introduced, it will be important to consider how they are integrated and cohered with ongoing initiatives, and any knock-on effects in terms of reprioritization or adjustments to existing programs of work.

Conclusion

• The CDS and DM Directive for the Delivery of Ready, Resilient, and Relevant Forces brings the necessary prioritization, resource allocation, accountability, and performance measurement to defence policy implementation and to cohere signature programs of work ongoing within Defence.

Annex A: Ready, Resilient, Relevant Framework

Caption

Ready, Resilient, Relevant

Vision: By 2030, Defence will have a ready, resilient, and relevant lethal fighting force capable of detecting, deterring, and defeating threats to Canada with a focus on North America and its approaches, and through the Arctic, Euro-Atlantic, and Indo-Pacific regions as our priority theatres.

Line of effort 1: defence Team

• Canadian Armed Forces
  • 71.5K Regular and 30K Reserves
• Institutional Foundation:
  • Capacity to build warfighting force (Civilian workforce)
• Evolve Professional Conduct and Ethics:
  • Team Cohesion, ethics and values
• Culture:
  • Digitally-enabled, delivery-focused

Line of effort 2: OPS and Readiness

• Augmented Readiness:
  • Prioritized Defence of Canada
• Strategic Campaigning:
  • Dynamic Strategic Effects Campaigning
• Force Employment:
  • Pan-Domain Force Command

Line of effort 3: Modernization

• Capability Roadmap
• Procurement Reform
• Sustainment Modernization
• Digital Transformation
• Infrastructure
• Ammunition Program
• Institutional Optimization

Strengthen the Institutional Foundation
Deter and Defeat New/Accelerating Threats

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North American Aerospace Defense Command (NORAD) Continental Operations

NORAD HQ

Integrated Tactical Warning Attack Assessment (ITW/AA) - 24/7/365

Detect, track, monitor missiles launched anywhere in the world, and assess potential attack on North America.
If required, the engagement of ballistic missile threats is executed by the United States through USNORTHCOM.

Maritime Warning - 24/7/365

Process, assess, and disseminate intelligence to warn of maritime threats to, or attacks against North America utilizing mutual support arrangements with other commands and agencies in the US and Canada.

NORAD Operational Regions

State Actor Air Response - 24/7/365

Detect, track, identify, and intercept foreign military air incursions into the US Air Defense Identification Zone (blue line) and Canadian Air Defense Identification Zone (red line) using integrated US and Canadian air power from locations across North America.

NORAD forces routinely detect, track, identify, and intercept Russian military aircraft and, for the first time in 2024, PRC military aircraft.

Intercept and Safe Passage Escort - Routine

Demonstrate NORAD’s rapid response capability by conducting the intercept, safe passage escort and handoff procedures of friendly aircraft, such as USSTRATCOM aircraft.

Op NOBLE DEFENDER (OND) - Routine

Demonstrate NORAD’s ability to launch US and Canadian forces at a moment’s notice from dispersed locations and defend North America from any and all approaches.

Demonstrate integrated CANUS operations across the Arctic in Alaska, Canada, as well as Pituffik SFB in Greenland.

Op NOBLE EAGLE (ONE) - 24/7/365

Established following 9/11, provide proactive, and reactive, responses to aircraft which may pose a threat to North America.

ONE informs NORAD’s operational approach to protect major national/international events, such as the G7.

Canadian Armed Forces Domestic Operations

[Redacted]

Canadian Armed Forces International Operations

[Redacted]

Canadian Armed Forces Special Operations

[Redacted]

ADM(Mat) Budget
Spent to date: ████████████
Anticipated Year End Budget ██████^{Footnote 14} Overplanning

Capital Projects
Spent to date: ███████████
Budget: ██████

Fleet Sustainment & ISS
Spent to date: ███████████
Budget: █████

Other^{Footnote 15}
Spent to date: ███████████
Budget: █████

Capital Projects

Canadian Multi‑Mission Aircraft

• First CP8A aircraft delivery is scheduled for Fall 2027.

• RFI for Long‑term ISS occurred in Spring 2025. ██████████████████████████████████████████████████████████████████████████████████████████
  Actuals: ███████████
  2025–26 Budget: █████

River Class Destroyer

• Implementation contract for the build of the first three RCD ships, signed with Irving Shipbuilding Inc on 3 March 2025.

• Full Rate Production on ship 1 began 25 April 2025 and first ship delivery forecast 2032.
  Actuals: ███████████
  2025–26 Budget: █████

Future Fighter Capability

• The first 8 CF35A are now in production.

• First delivery scheduled for Fall 2026 to Luke AFB, Arizona for Canadian pilot training. Infrastructure and site development work ongoing at Cold Lake and Bagotville.
  Actuals: ███████████
  2025–26 Budget: █████

Joint Support Ship

• JSS 1 schedule is currently under review with sea trial shifting to 2026 with delivery now expected in mid 2027. JSS 2 is scheduled for delivery in 2027. Most structural consolidation of the ship will occur in 2025.
  Actuals: ███████████
  2025–26 Budget: █████

Strategic Tanker Transport Capability

• Three CC330 Husky aircraft now located in Canada, two aircraft supporting RCAF operations, one aircraft available as a backup in ready‑for‑flight condition. First new CC330 MRTT now in conversion in Getafe, Spain with delivery to Canada in 2027.
  Actuals: ███████████
  2025–26 Budget: █████

Fleet and Equipment Sustainment

Halifax Class Frigate

• The Halifax Class In‑Service Support Contracts ensures fleet readiness through maintenance, engineering support, and timely acquisition of spare parts.
  Actuals: ███████████
  2025–26 Budget: █████

Victoria Class Submarines

• Victoria Class In‑Service Support Contracts (VISS) for maintenance, repair, overhaul, and platform integration.
  Actuals: ███████████
  2025–26 Budget: █████

CH‑148 Cyclone

• The Cyclone In‑Service Support Contracts ensures fleet readiness through maintenance, engineering support, and timely acquisition of spare parts.
  Actuals: ███████████
  2025–26 Budget: █████

CH‑149 Cormorant

• The In‑Service Support Contract ensures mission readiness through comprehensive maintenance and support while the helicopters undergo a mid‑life upgrade.
  Actuals: ███████████
  2025–26 Budget: █████

█████████████████████

• ███████████████████████████████████████████████
  ███████████████████████████████████████████████████████████████████
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• ███████████████████████████
  ██████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████
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• ████████████████████████████████
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  ██████████████████████████████████████████████████

High Visibility Projects / Initiatives

Arctic Over the Horizon Radar (A‑OTHR)

█████
████████████████
█████████████████████████
█████████████████████
███

• Ultra‑long‑range surveillance of Canada’s northern approaches about airborne threats.
• Stage 1 Minimal Viable Product installed by December 2029.
• A‑OTHR Program does not have an Initial Operational Capability. December 2029 could be considered as an Initial Capability. Between 2029 and 2043 the A‑OTHR Program next stages will be implemented in an iterative manner.
• Full Operational Capability by 2043.

Defence Enhanced Surveillance from Space (DESSP)

█████
████████████████
████████████████████████
███████████████████████
█████

• Satellite system designed to support global intelligence collection while concentrating on monitoring maritime approaches to Canada ███████████████████████████████████████████████

• █████████████████████████████████
  ███████████████████████████████
  █████████████████████████████
  █████████████████████████
  ███████████████████████

Enhanced Satellite Communications Project – Polar (ESCP‑P)

████████
████████████████
████████████████████████
████████████████████
████

• Dedicated, secure and resilient military satellite communications system addressing current limited communication capabilities in the Arctic above 65°N latitude, enabling real‑time situational awareness, decision‑making, and improved command and control.

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Capital Project Portfolio

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Identification ████████

• Evolved Crypto Capability – Radio ████████

• RCAF Air Weapons Coverage Expansion ███████

• Intelligence Mission Data ███████

• Worldwide Satellite Communications – Protected MILSATCOM Strategic ████████

• Worldwide Satellite Communications – Protected MILSATCOM Tactical ████████

• Worldwide Satellite Communications – Wideband ███████

• Key Management Infrastructure – Hardening ██████

• Modernized Command and Control Information System
• Worldwide Satellite Communications – Narrowband
• North Watch (formerly P‑OTHR)

Options Analysis █████████

• Enhanced Satellite Communications Project – Polar █████████

• Science and Technology Enhanced Research Capability ████████

• Defence Enhanced Surveillance from Space ████████

• DEFENCEx ███████

• Cyber Operations Training Eco‑System ███████

• Evolved Crypto Capability – Telecommunications ███████

• Strategic Radio Capability ████████

• System of Training and Operational Readiness Modernization ███████

• Military Pay Solution ████████

• Secure C2 Mobile Device – Secure Tailored Solution ██████

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• Automatic Identification Technology ███████

• IT Infrastructure in Support of Command & Control ███████

• Cyber Defence – Decision, Analysis, & Response ███████

• Identity, Credential & Access Management ███████

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• Electronic Health Record Platform ███████

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• Network Command & Control ██████

• Defence Cryptographic Mod Omnibus Project ██████

• Meridian Standard

• Arctic Over the Horizon Radar ██████████

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• Secure Radio Modernization ███████

• Secure Radio ███████

• Tactical Narrowband SATCOM Geosynchronous ███████

• Classified Security Management Infrastructure ██████

• CF Electronic Warfare Support Project ██████

• Advanced Cryptographic Capabilities ██████

• Medium Earth Orbit Search and Rescue ██████

• Search and Rescue Mission Management System Replacement ██████

• Digital Biometrics Collection & Identity Management █████

• Agave Gold

Summary

Overview of Canada’s Defence Industrial Strategy, which aims to rebuild and modernize Canada’s defence industrial base so it can better equip the Canadian Armed Forces, while maximizing growth, job creation and economic benefits for Canadians.

Background

• Canada’s Defence Industrial Strategy (DIS) sets out the Government’s plan to rebuild Canada’s sovereign defence industrial base so that it can better equip the CAF, support Allies, and generate economic benefits for Canadians.
• The DIS responds to a more dangerous and competitive global security environment in which advanced technologies – such as AI, quantum, space, cyber, and autonomous systems – are increasingly central to modern warfare and deterrence.
• Budget 2025 committed $6.6 billion over five years to launch the initial investments – the “Early Moves” – of the DIS.
• The DIS public document developed by the Department of National Defence (DND) and Innovation, Science and Economic Development Canada (ISED) is tentatively scheduled to be released in mid-February 2026.

Considerations

Engagement with Industry and Canadians

• Industry engagement has been a priority in the development of the Defence Industrial Strategy with engagements with over 2,000 Canadian industry representatives, from Small Medium Businesses to Prime Contractors. These engagements served to identify issues with the relationship between the Government of Canada and the private sector.
• Six roundtables were conducted between the Minister of National Defence and major industry primes to discuss how industry and government can better collaborate on critical CAF capabilities, such as Land Systems, Shipbuilding, Aerospace, C4ISR, Ecosystem Support, and Venture Capital.
• The Department has conducted extensive Federal-Provincial-Territorial engagement, with meetings, roundtables, and regional visits. Collaboration with Other Government Departments has developed strong cross-departmental relationships, to allow for coordination on DIS priorities. Departmental officials also had strong representation at a variety of domestic and international tradeshows.
• Meetings and long-term engagement planning with a variety of post-secondary institutions and academics has also provided critical insights as to how the DIS can support the development of a strong Canadian workforce, and the broader development of Canada’s Defence Industrial Base.
• These engagements were collated into a broader "What-we-heard" report, which directly informed the development of the DIS, ensuring that future GoC – industry collaboration is better placed to deliver capabilities into the hands of the Canadian Armed Forces (CAF).

Public DIS

• The current draft of the DIS was developed jointly by DND and ISED in close consultation with other government departments. The strategy is anchored around five pillars:
  • Renewing our Relationship with Industry
  • The Defence Investment Agency & “Build-Partner-Buy”
  • Investing Purposefully to Strengthen an Innovative Canadian Defence Sector
  • Securing Supply chains for Key Inputs and Goods
  • Working with Key Domestic Partners, including in Canada’s North and Arctic
• The Defence Investment Agency (DIA) is positioned as the central delivery vehicle of the DIS, with a mandate to align procurement with industrial policy, accelerate capability delivery, and better connect the CAF with industry.
• The DIS frames defence investments as both a national security imperative and economic opportunity – linking military readiness to job creation, innovation, and industrial growth across Canada.
• The Strategy identifies sovereign capabilities that are critical for the CAF to defend Canada, including space, quantum, AI, munitions or digital capabilities. The document also highlights the importance of key assets like critical minerals, and underscores the Government’s intent to build strategic partnerships.

DIS Early Moves

• Even though the DIS is not yet published, the Government already announced a first set of initiatives to deliver capabilities to the Canadian Armed Forces and position Canada’s industrial base for long-term growth. These investments are laying the foundation for the success of the DIS and are key to the Government’s efforts to reach 2% of Gross Domestic Product in defence spending in fiscal year 2025-26.
• Investments announced to date include:
  • $68.2 million over three years to establish the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science (BOREALIS). BOREALIS will accelerate the delivery of cutting-edge capabilities for defence, reduce barriers to commercialization, and align investments with mission-critical capability gaps.
  • $1.0 billion to establish a Defence Platform at the Business Development Bank of Canada to provide loans, venture capital, and advisory services to help small-and medium-sized businesses contribute to Canada’s defence and security capabilities.
  • $656.9 million over five years to develop and commercialize dual civilian-military technologies in key industries such as aerospace, automotive, marine, cybersecurity, artificial intelligence, biodefence, and life sciences.
  • $334.3 million over five years to support Canada’s quantum industry and provide pathways to technology adoption in defence-related applications and industries (this includes $92 million over two years for the launch of Phase 1 of the Canadian Quantum Champions Program to anchor top Canadian quantum companies and talent at home).
  • $443.0 million over five years to support the development of innovative critical minerals processing technologies, support joint investments with Allies in Canadian critical minerals projects and develop a critical mineral stockpiling mechanism to strengthen Canadian and Allied national security.
  • $182.6 million over three years to support space launch capabilities and rocketry research and development.
    • This includes $25 million this fiscal year for IDEAS challenge to accelerate the advancement of Canadian-designed space launch technology to enable the launch of Canadian payloads from Canadian soil.
  • $528.5 million in funding for the Canadian Space Agency to contribute – on behalf of Canada - to the European Space Agency through the Canada-ESA Cooperation Agreement. This contribution will advance research and development of Canadian-made space technologies for civilian and defence purposes.
  • $357M over 3 years to the Regional Development Agencies (RDAs) for the Regional Defence Investment Initiative (RDII) to support Canadian businesses and organizations looking to grow their capacity, innovate, or adapt products and services to supply the defence sector.
  • $244.2 million over three years for the Defence Industry Assist program to provide funding and advice to high-potential, innovative Canadian Small and Medium Enterprises to advance made-in-Canada defence and dual-use technologies.
• A full list and description of initial DIS initiatives can be found in the Early Moves placemat.

Defence Industrial Strategy Initial Investments

Sovereign Capabilities

Space Launch (DND)

• This initiative will support the rapid development of domestic space launch infrastructure in Canada. Investments will help reduce Canada’s dependence on foreign countries to get critical space capabilities into orbit, and will directly support Canadian innovators solving defence and security challenges.

Rocketry R&D (DND)

• This initiative will invest in the research and development of space rocketry technology (materials, propulsion systems) to produce space launch capability, and will leverage the expertise of Canadian innovators in industry and academia.

Research and Development

BOREALIS (DND/CSE/NRC)

• This initiative will create BOREALIS to advance cutting-edge technologies that support the CAF with made-in-Canada solutions, positioning Canada as a leader in defence and security innovation.

Dual-Use Space Technology Development (CSA)

• This initiative is designed to help retain and grow Canadian industrial capacity to develop advanced dual-use space capabilities that are essential to Canada’s defence and security requirements. Canadian companies will be able to be awarded contracts across a variety of strategically important dual-use space technologies.

Dual-Use Technology Development & Commercialization (ISED/NRC)

• This initiative will support the development and commercialization of defence and dual-use technologies. It will leverage existing programs within ISED and NRC to invest funds to bring more Canadian-made innovation to the CAF.This initiative will establish the Canadian Quantum Champions Program to support supply chains, R&D, talent, and adoption of quantum technologies in defence applications.

Quantum Response to DARPA QBI (ISED/NRC)

• This initiative will help establish the Canadian Quantum Champions Program. The program will help anchor quantum technologies in Canada by providing funding, building a robust supply chain, offering access to R&D and expertise, and supporting early application and adoption in defence-related applications and industries.

Quantum Ecosystem Support (ISED/NRC)

• Together with the Quantum Response to DARPA initiative, this initiative will make significant investments across the entire spectrum of research and development, talent cultivation, and commercialization to develop a thriving Canadian quantum ecosystem.

Aerospace Technology Demonstration Platform (NRC)

• This initiative will serve as a cornerstone for advancing innovation and airborne defence capability development within Canada’s ecosystem through cutting-edge research, testing, and demonstration of emerging technologies.

Defence Industry Assist (NRC)

• This initiative will provide funding and advisory services to SMEs developing priority defence and dual-use technologies. These efforts will support high-potential and innovative firms across Canada that are developing technologically innovative products and services that can help meet the needs of the CAF.

Drone Innovation Hub (NRC)

• This initiative will establish a national Drone Innovation Hub (DIH) to support the acceleration of drone innovation in Canada. It will create a coordinated national ecosystem that connects government, industry, and academia to advance drone and counter-drone technologies and help equip the CAF in a key area of modern warfare.

Financial Support for the Industry

BDC Defence Fund (ISED)

• Funding to the Business Development Bank of Canada (BDC) for a defence fund to support businesses in Canada’s defence industrial base. This fund will allow the BDC to expand and deepen its financing, venture capital investment and advisory services to businesses that help strengthen Canada’s defence and security capabilities.

Infrastructure in the North

Nuclear Energy (NRCan)

• The Government of Canada will be conducting a feasibility study that will assess the potential use of microreactors (a category of small modular nuclear reactor), to supply heat and electricity for remote and Northern DND and Canadian Armed Forces (CAF) facilities and operations.

Supply Chains

Critical Mineral Processing (ISED/NRCan)

• This initiative will support research, development, and processing activities that advance secure and sustainable supply chains. It focuses on accelerating innovation, building domestic capacity in rare earth magnets and amorphous steel, and enabling the production of materials essential to defence.

Critical Mineral Stockpiling (NRCan)

• The Government will create a mechanism to expand the production, buying, stockpiling, and selling of critical minerals essential for national defence purposes. This initiative will provide, as a first step, enhanced market intelligence, analysis and advice that will be foundational to informing critical mineral stockpiling.

Investments in Supply Chain Development (RDAs)

• This initiative will support the integration of businesses into defence supply chains; increase the innovation and production capacity of businesses; and support business that produce dual use technology to supply the defence sector. This investment will build a robust defence industrial ecosystem, while bolstering regional economic benefit.

Nitrocellulose (DND)

• This initiative will support production capability in Canada by providing funding to construct and deliver an operational nitrocellulose production facility by 2030.

Export Promotion

Defence Export Promotion Strategy (GAC)

• This initiative will develop and invest in a Defence Export Promotion Strategy. The objectives of the Strategy will be to increase Canada’s overall defence exports, to expand existing and create new markets for Canadian exports and support the overall growth and sustainability of Canada’s defence industrial base.

Enhanced Presence at Airshows (ISED)

• This initiative will support and increased Government of Canada presence at the next Farnborough International Airshow (FIA) in July 2026 and the next Paris Air Show (PAS) in June 2027, the world’s largest aerospace trade events.

CFMWS – Serving those who serve

January 2026

About Us

We provide morale and welfare support to the CAF

Mandated by DND/CAF and through the Non-Public Property (NPP) framework, we contribute to operational readiness and CAF Reconstitution.

We are a purpose-built social enterprise

All our profits are invested into programs and services to benefit CAF members, Veterans and their families.

We are member and employee-centric

Our employees understand our members. We contribute to their self-reliance, resilience and readiness by improving their mental, social, physical, financial and family wellbeing.

We contribute to a larger vision

We work lockstep with DND and other government partners to contribute to the larger Defence mission and other Government of Canada objectives.

Mission, Vision, Values

Mission

To improve the military community’s resilience and well-being through the design, delivery and evaluation of wellness enhancing offerings to contribute towards operational readiness, recruitment & retention of the CAF.

Vision

Improving lives around the world.

• Mental
• Social
• Physical
• Financial
• Family

Values

We Care: We put our people first, we care for our members, our community.

One Team: We are one team, we have each others backs and get it done together for our members.

Integrity: We act with integrity and strive to do the right thing, we say what we mean and do what we say.

Creative: We constantly look for new ideas and find creative ways to provide our members with the best possible experience.

Throughout this presentation, the term military community refers to the CAF community that CFMWS serves:

• Regular and Reserve Force
• Veterans
• CAF families

Our Value Proposition

Our employees are passionate, driven, invested and proud to be serving those who serve. They are dedicated to the CAF and delivering programs and services designed to create vibrancy and a sense of belonging regardless of the location.

CFMWS provides a unique value proposition for the Government of Canada where, through a social enterprise model, we reinvest our profits back into programs and services that enhance the resilience of the Defence and Security community by improving our members’ health and wellbeing.

Our Divisions

We are a purpose-built social enterprise. We help Canadian Armed Forces members, Veterans and their families build self‑reliance, resilience and readiness. Their mental, social, physical, familial and financial wellbeing is our overarching priority.

Our Staff

CFMWS employs the Staff of the Non-Public Funds, Canadian Forces (SNPF, CF) and uses the NPP accountability framework to control and deliver the programs in a unique social enterprise business model that not only creates real value for the CAF community but also reinvests back into health and wellness programs, which strengthen our members and their communities.

As a separate employer—defined in Schedule V of the FAA—SNPF, CF has the flexibility to manage the workforce to deliver services that meet our members’ changing needs.

Full Time: 2,403
Part Time: 644
Casual: 1,531
LOA/LTD: 236
Unionized: 1,102

Financial Administration Act (FAA) Schedule V, Separate Agency is the foundation of SNPF, CF.

Assigned to MND by two Orders-in-Council to allow for employee collective bargaining.

Treasury Board is not the employer.

SNPF, CF employees are not part of DND / CAF.

FAA Section 11 – Legislate powers of a Deputy Head to CEOs of Separate Agencies.

MND Order authorizes the CDS to exercise or perform the Ministerial powers or functions that are vested in the MND for the SNPF, CF.

Acting as the MND in this regard and using an SNPF, CF employment contract, the CDS recruited the CEO SNPF, CF to fulfill all SNPF, CF employer responsibilities. The CEO SNPF, CF is an SNPF, CF employee.

CEO SNPF, CF creates and administers the conditions of employment for all SNPF, CF jobs, both managerial and unionized (HR Pol). This includes recruiting, compensation / benefits, job classification and conflict management.

SNPF, CF has its own Pension Plan, governed by the Pension Committee that is appointed by the CEO SNPF, CF. The plan is externally administered.

SNPF, CF is subject to the CLP Part II, CHRA, OL Act, ATI and Privacy Acts and certain other federal legislation.

By Division

• CANEX: 11%
• SISIP Financial: 4%
• Military Family Services: 5%
• Personnel Support Programs: 69%
• Corporate Support Divisions: 11%

Our locations

Our programs

We strengthen our members, so they are ready to serve Canada

• Physical fitness and injury prevention
• Participatory and/or competitive sport at local, regional, national and international levels, both inside and outside CAF
• Canadian Armed Forces Human Performance
• Health promotion

We enable our members’ financial wellbeing

• Insurance
• No-fee banking, savings and investment plans
• Financial planning and counselling

We provide opportunities for social connection and for adventure

• Recreation programs for adults and kids
• Messes, community clubs, campgrounds and other leisure activities
• Discounted travel opportunities, quick-service restaurants and everyday discounts
• Retail goods, services, savings and rewards through CANEX and its partners
• Discounts with other retail and travel partners across the globe

We support families

• Virtual Counselors available 24/7
• Military and Veteran family services across Canada, in the US and Europe
• Specialized support, including help with relationships, grief, moving, dealing with illness and injury, stress management and transitioning to civilian life

Our value to DND/CAF

1. We deliver publicly-mandated and publicly- funded programs such as military fitness, sports, health promotion, financial counselling and military family services, on behalf of CAF and DND.
2. We generate revenue through CANEX, SISIP Financial, and PSP Recreation and Leisure to deliver services tailored to community needs.

How we do it

• Through full alignment with CAF strategic direction. (e.g., Reconstitution, CAF Offer, SSE, BALANCE).
• By addressing systemic challenges, such as Seamless Canada.

Our value to our members

1. We deliver programs that strengthen the mental, social, physical and financial wellness of CAF members, Veterans and their families.
2. We generate revenue to deliver services tailored to community needs through CANEX, SISIP Financial, and PSP Recreation and Leisure, and return a portion of these profits to local Base/Wing funds to further support members.

Our 2024-27 Strategic Plan

Strategic Imperatives

• Achieve sustainable revenue sources.
• Improve quality of CFMWS experience.
• Increase operational efficiencies.
• Improve employee experience.

CFMWS Strategic Plan 2024–2027

• Strategic Goal – What we want to achieve: By 2027, we will achieve financial sustainability, and year-over-year profitability for all programs and services delivered within the non-public property framework.
• Foundation – What we are built upon: A-PS-110 MODERNIZATION
• Strategic Imperatives – What our core game plan will be:
  • Achieve Sustainable Revenue Sources
  • Improve Quality of CFMWS Experience
  • Increase Operational Efficiencies
  • Improve Employee Experience
• Tier 1 Measures – How success will be measured:
  • Net Income
  • Net Promoter Score
  • Operating Costs
  • Employee Engagement Score
• Objectives – Where will we focus resources:
  • Confirm sustainability & value proposition
  • Evaluate & implement monetization opportunities
  • Develop Digital Transformation Roadmap & implement priority technology activities
  • Evaluate & reassess Service Delivery Framework
  • Rationalize delivery of public programs
  • Rationalize delivery of non- public programs for net profitability
  • Develop integrated infrastructure plan & prioritize for investment
  • Conduct core process review & prioritize for reengineering
  • Realign business practices & functional authorities
  • Develop Future Strategic Workforce Plans
  • Implement Enterprise Data Analytics & Info Management Program
  • Implement Talent Management Strategy
  • Implement Digital People Management System
  • Implement Workplace Wellness Programs
  • Implement Total Rewards Programs

The Connection

• CFMWS Strategic Imperatives + CDS Priorities = Improve the CAF Community’s Resilience and Wellbeing through the design, delivery and evaluation of wellness enhancing offerings to contribute towards operational readiness, recruitment & retention of the CAF.
  • Improve the Quality of the CFMWS Experience
  • Improve Employee Experience
  • Increase Operational Efficiencies
  • Achieve Sustainable Revenue Sources
  • Supporting Our People
  • Advancing Professionalism
  • Enhancing Capabilities
  • Operational Readiness

About NPP

• National Defence Act (ss 2, 38-41) is the foundation for Non-Public Property.
• NPP is vested in the CDS and Unit COs (NDA ss 38, 39).
• NPP is subject to MND direction (NDA s 41)
• NPP is not subject to the FAA (NDA s 41)
• CDS owns NPP accountability framework.
• Audited by ADM(RS) and the private sector.
• The NPP Oversight and Advisory Board (OAB) is a Crown NPP administrative construct created by the CDS. Not legislated, has no fiduciary authority and acts as an advisory committee (like AFC).
• The MD NPP acts on behalf of the CDS within DOAs established by the CDS and reports directly to the CDS.
• Delegation of Authority last update – May 2023

Governance Committees

Sources of Funding and CFMWS Expenditures (FY 2024-2025)

Program offerings

• Fitness
• Sports
• Health Promotion
• Recreation, Leisure & Special Interest Activities
• Human Performance Research & Development
• Soldier On
• Deployment Support
• Op Santa
• Messes
• CAF Newspapers
• Sponsorship & national event planning support
• Fitness and Sports Leadership Quals
• Mental Health Support
• Emergency Family Care
• Access To Health Care
• Spousal Employment
• Community Integration
• Relocation Support
• Workplace Absence Support
• Transition Support
• Education (Guidance Counselling)
• Special Needs Of Loved Ones
• Second Language Training
• Bereavement Support
• National and community strategic partnerships

SISP Financial

Our services

Insurance Protection

• Life Insurance
• General Officers’ Insurance
• Critical Illness Protection
• Travel Insurance

Investing

• Investment Portfolios
• TFSA, RRSP, RESP, FHSA

Financial Planning

• Pension Expertise
• CAF Release Planning
• Estate Planning
• Deployments and Moves
• Education

Credit Counselling

• Budgeting, Managing Debt
• Grants and Loans
• Creditor Protection, Bankruptcy

Financial Education

• Briefings and Webinars
• Learning Portal

CANEX

Products and services

• Retail Services
  • 35 CANEX stores
  • Wholesale - Alcohol, Tobacco, Beverage, HABA
• E-Commerce
  • CANEX.ca
  • 3rd Party Fulfilment Program
  • BOPIS (Buy Online Pick-up In-Store)
• Affinity Partners
  • BMO
  • The Personal Insurance
  • CANEX Home Heating Program
• Concessions & Additional Services
  • 135+ Concessions: Barber shops/salons, Food Services/Financial Services, Health, Personal & Professional Services
  • 75+ Local Partners
  • 500+ vending machines
  • 75+ATMs
  • Seasonal food trucks
  • Self-serve CANEX micro markets
• Programs
  • CANEX No Interest Credit Plan
  • CANEX Rewards
  • CF One Member Appreciation
  • CANEX Price Match

Support Divisions

Human Resources

• Recruitment and Onboarding
• Learning and Development
• Talent Management and Performance
• Total Rewards (Compensation & Benefits)
• Payroll
• Workplace Wellness
• Labour Relations & Collective Bargaining
• Legislated Programs (Occupational Health and Safety, Official Languages, Diversity & Inclusion)
• Centre for Conflict Resolution and Ethics

Finance

Programs:

• Canadian Forces Central Fund (CFCF) Banking
• CFCF investment and treasury (grants and loans)
• CAF NPP Accounting System - PROPHET (Business Owner)
• Consolidated Insurance Program (CIP)
• Oversight of NPP Corporate Cards
• Debit/e-transfer/Credit Card Payment Solutions

Activities:

• NPP Accounting Services
• Financial Planning & Analysis
• Compliance and Assurance Reviews
• NPP Governance - Command Support
• Stewardship (Bases/Wings/Units (Reg and Res))
• NPP Financial Policies and Directives (Including CDS Financial Delegation of Authority for NPP)

Information Services

• Management, operation and support of the Non-Public Property Network
  • NPP Network
  • On-premises and Cloud Infrastructure
  • Cybersecurity
  • Applications
  • Technology Procurement, Contracting and Vendor Management
• NPP Network User Support
• Capital IM/IT Portfolio management
  • Business Analysis
  • Project management and implementation
• Technology leadership and Innovation

Corporate Services

• Corporate Counsel and Legal Services
• Corporate Secretariat
• Administration Services
• ATIP
• NPP Real Property and Environment
• QCC Management
• Contracting
• Travel Services

Current Issues

• Federal Real Property Prioritization

Marketing & Communications

• Marketing
• Employee and Member Communications
• Media and Public Relations
• Issues management
• Translation Services
• Social Media
• Brand & Creative
• Member Customer Service
• Business Operations
• Website Management

Current Issues and Concerns

• A‐PS‐110 Modernization
• SISIP
  • Reinsurance Funding Agreement (RFA).
  • CAF Long‐Term Disability. Salary After Release (SAR) and modernization
• Child Care
• MFRC Governance

CFMWS. Invested in your life.

Winter 2026

CSE within Canada’s Current National Security Apparatus

• Canada’s security and intelligence community defends the safety and security of Canada’s territory, government, economy, and people, and provides insights to promote and protect Canadian interests.
• The national security apparatus works to:
  • Produce intelligence
  • Assess key issues and events
  • Reduce threats
  • Build resilience
  • Screen people and investments for security concerns
• Intelligence and law enforcement agencies work together along with a range of departments and with international partners.

CSE’s Role Is To

• Collect and report on foreign intelligence in line with the Government of Canada intelligence priorities.
• Provide cyber security, information assurance/secure communications for the Government of Canada, as well as guidance and services to help protect systems of importance to the Government of Canada.
• Take action online through foreign cyber operations to disrupt and degrade foreign threat actors and activities in support of Canadian international affairs, defence and security, and to defend systems of importance to the Government of Canada.
• Provide technical and operational assistance to federal law enforcement and security agencies, including DND/CAF.
• Lead the Canadian Centre for Cyber Security, which offers cyber security advice to external stakeholders and the public.

CSE’s Mandate

• Our mandate is defined in the Communications Security Establishment Act (CSE Act), enacted in 2019.
• As Minister of National Defence, you play a direct role in determining how CSE operationalizes its mandate by issuing Ministerial Authorizations, Orders and Directives that help give effect to CSE’s statutory authorities.
• CSE is explicitly prohibited from directing its activities at Canadians anywhere in the world, or at any person in Canada.
• CSE’s activities are subject to independent oversight by the Intelligence Commissioner (IC) and retroactive review by the National Security and Intelligence Review Agency (NSIRA) and the National Security and Intelligence Committee of Parliamentarians (NSICOP).

Delivering the Mandate: Foreign Intelligence objectives

• CSE acquires and analyzes electronic information to detect and inform the Government of Canada on activities of foreign entities that seek to undermine Canada’s national security and prosperity. Our foreign intelligence also provides insights with an information advantage to Canadian policy makers.
• CSE’s intelligence reporting offers:
  • Unique insights into, and advance warning of foreign threats to Canada to prevent surprises that could harm Canadians, Canadian institutions, or allies;
  • Unique insights to support foreign and economic policy and decision-making; and
  • Information to support trade, economic security, law enforcement and military operations by providing information that goes far beyond public sources.

Intelligence Cycle

• Intelligence priorities are set by Cabinet and further refined into intelligence requirements
• CSE collects foreign signals (emails, phone calls)
• CSE analyzes signals and produces foreign intelligence reports
• CSE disseminates intelligence reports to domestic and international clients and partners
• CSE collaborates with international partners to provide a larger intelligence picture
• Intelligence reports inform Canada’s decision making and help identify new intelligence gaps

Delivering the Mandate: Foreign Intelligence — Measures and Mechanisms

• In 2024/2025, CSE provided 2,878 reports to 3,016 clients from 32 federal departments and agencies.
• Reports can only be read by authorized users across the Government of Canada and the Five Eyes. Robust mechanisms ensure this information is shared safely:
  • Electronic dissemination
    • Reports are shared via Canada’s Top-Secret Network (CTSN) – run by CSE and used to collaborate and communicate at the Top-Secret level.
  • Client Relations Officers (CROs)
    • CSE employees embedded across the Government of Canada who deliver intelligence reports to authorized users, such as Cabinet ministers.
  • SIGINT Dissemination Officers (SDOs)
    • Employees of other Government of Canada departments who are accredited by CSE to share intelligence reports with authorized clients within their departments.
• Guided by the Government of Canada’s priorities, topics include:
  • hostile state activity (e.g. cyber threat activity, espionage, foreign interference and malign influence, counterintelligence, and intellectual property theft);
  • terrorism and violent extremism;
  • People’s Republic of China actions and intent;
  • Russia’s invasion of Ukraine;
  • Arctic sovereignty; and
  • Border security.

Delivering the Mandate: Cyber Security

• CSE’s Canadian Centre for Cyber Security (Cyber Centre) provides advice, guidance and services to help defend Canada against cyber threats and foster a stronger, more resilient cyberspace in Canada.
• The Cyber Centre:
  • Defends federal government networks – for example by deploying sensors on endpoint devices (e.g. servers, laptops) that automatically detect malicious activity like malware to defend against threats.
  • Leads Canada’s federal response to cyber security events.
  • Provides a unified source of expert advice, guidance, services, and support on cyber security and threat assessments for Canadians and Canadian organizations.
  • Works in collaboration with all levels of government, the private sector, industry, academia, critical infrastructure, and international partners.
  • Supports cyber resilience in Canadian research, economic and investment activities.

Delivering the Mandate: Information Assurance

• CSE is responsible for information assurance, known as Communications Security (COMSEC) for the Government of Canada — a fundamental part of cyber security which protects sensitive information and prevents our information from being accessed by adversaries, using encryption which:
  • Converts data into unreadable code, accessible only with keys — a strong defence against cyber threats
  • Helps verify that data has not been altered during transmission
  • Enables trust and confidence among stakeholders, partners and the public.
• As the backbone of information security, encryption enables the military equipment to identify 'friend or foe' and keeps national security operations and cabinet deliberations safe from breaches.
• At the nexus of COMSEC, CSE:
  • Provides the Government of Canada and some industry partners with secure hardware, software and cryptographic keys;
  • Works with federal and international partners to ensure rigorous cryptography standards; and
  • Is working to prepare for the emergence of quantum computers — which could break encryption and may be available as early as the 2030s.

Delivering the Mandate: Foreign Cyber Operations

In 2023, CSE used DCO capabilities against a foreign ransomware group that was targeting multiple Canadian critical infrastructure organizations.

The Cyber Centre worked to mitigate the compromise within Canada, while the foreign cyber operations team acted in cyberspace to interfere with the cybercriminals’ foreign servers, thus reducing the effectiveness and profitability of their activities.

• CSE can take action online in support of Canada’s international affairs, defence, and security, and to defend federal systems and systems of importance to the Government of Canada.
• As Minister of National Defence, you authorize CSE to conduct Active and Defensive Cyber Operations. The Minister of Foreign Affairs must be consulted for defensive cyber operations and must consent to active cyber operations.
• Defensive Cyber Operations (DCO) disrupt foreign activities aimed at federal institutions and systems of importance (e.g. energy grids, telecoms networks, healthcare databases, banking systems). For example, CSE could prevent cyber criminals from stealing information from a Government of Canada network by disabling their foreign server.
• Active Cyber Operations (ACO) are proactive actions to disrupt foreign based threats to Canada’s defence, security, or international affairs. For example, CSE used active cyber operations to counter foreign groups in their dissemination of violent extremism materials online.
• The CAF and CSE have a longstanding partnership in developing advanced technical and specialized capabilities for providing intelligence to support military operations. Over the last decade, the partnership has evolved to include collaboration in the areas of cybersecurity, and defensive and active cyber operations. Through CAFCYBERCOM, CSE continues to conduct joint cyber operations with the CAF to support their mission objectives.
• Cyber operations must not:
  • target Canadians or anyone in Canada
  • interfere with the course of justice
  • interfere with the course of democracy
  • cause death or bodily harm

Delivering the Mandate: Technical and Operational Assistance

• As Canada’s national cyber security and foreign intelligence agency, CSE has unique technical and operational capabilities that can help other federal organizations keep Canadians safe and secure.
• CSE is authorized to assist:
  • Federal law enforcement and security agencies:
    • Royal Canadian Mounted Police (RCMP)
    • Canadian Security Intelligence Service (CSIS)
    • Canada Border Services Agency (CBSA)
  • Department of National Defence (DND) and Canadian Armed Forces (CAF)
• When assisting federal partners, CSE acts under their legal authority (e.g. judicial warrants).
• In 2024/25, CSE provided assistance to 51 requests from federal partners.

Implementing Recent Defence Investments

• In June 2025 the Prime Minister committed to increase Canada’s defence spending to meet current NATO targets of 2% annual GDP in 2025/26 and further committed to NATO’s new Defence Investment Pledged to dedicate 5% of annual GDP by 2035.
• As part of these announcements, CSE will receive up to $8.3 billion over five years, beginning in 2025-26, to modernise and secure digital infrastructure that will deliver resilient Canadian solutions to safeguard the country’s most sensitive information, communications, and operations. These efforts include:

Investing in Infrastructure

Ensuring Canada’s classified community can share information with the right people at the right time.

Investing in Cryptography

Developing Canada’s sovereign, cryptographic capabilities through partnerships with research and industry.

Investing in technology

Providing digital capabilities that are future proof and capable for the challenges of the future.

Investing in Artificial Intelligence

Partnering with Canadian AI companies to implement leading-edge technologies.

Collaboration in Action: Synchronizing CSE’s Mandate

• CSE’s cyber security, foreign intelligence and cyber operations mandates work together to achieve a range of outcomes that benefit Canadians.
• Having one agency carry out this full mandate provides CSE and Canada with unique advantages.

Cyber Incident

A Canadian critical infrastructure organization reports a ransomware attack to the Cyber Centre.

Cyber Security (Digital Forensics)

The Cyber Centre’s incident response team identifies a prominent ransomware group as the culprit.

Foreign Intelligence

CSE gathers foreign signals intelligence on the ransomware group and advises several government clients, as well as senior leadership. This intelligence is also used to enable cyber operations and cyber resilience.

Foreign Cyber Operations

CSE and Five Eyes partners conduct cyber operations to disrupt the group and deter future incidents.

Cyber Security (Cyber Resilience)

The Cyber Centre uses digital forensics and foreign intelligence to improve Canada’s cyber resilience and cyber defence. They also provide advice and guidance to critical infrastructure to help them defend against future attacks.

Collaboration in Action: FIVE EYES Partnership

• CSE is a proud and valuable member of the Five Eyes, the world’s longest-standing and closest intelligence-sharing alliance.
• The Five Eyes is a key element in Canada’s intelligence and security landscape, providing a strategic advantage in understanding and responding to global events.
• This enduring partnership continues to deliver results that make the citizens of all five nations safer by:
  • Sharing foreign intelligence;
  • Supporting joint foreign cyber operations;
  • Ensuring interoperability and redundancy of systems;
  • Conducting classified research of strategic importance; and
  • Communicating threats and guidance jointly.
• This partnership adds weight to public communications when Five Eyes speak as one voice. On joint publications regarding topics like cybercrime, AI, and threats to critical infrastructure, the message is amplified.
• While CSE maintains deep and longstanding partnerships with our Five Eyes partners, these relationships are governed by clear mandates, operational boundaries, and oversight and review mechanisms that ensure Canadian autonomy is preserved at every level.

Collaboration in Action: Beyond the Five Eyes

• CSE maintains long standing partnerships outside the Five Eyes, with key international allies. Working closely with domestic and international partners, CSE leverages its mandate to identify threats, defend against them and take action to disrupt the activities of malicious foreign actors. For example:
  • To enhance Arctic Sovereignty, CSE works with international allies to provide foreign intelligence and advance partnerships in areas such as cyber defence, economic security and countering foreign interference.
  • In support of Ukraine’s resistance to Russia’s ongoing unjustifiable invasion, CSE shared our file triage and malware analysis platform with the Ukrainian Forces, providing the same in-depth malware discovery services that are used to protect Government of Canada networks.
  • Alongside NATO allies, CSE contributes to deterrence against Russia, by engaging in efforts to secure critical infrastructure, and enhance partner capacity with cyber security counterparts, including Latvia.
  • CSE is a key contributor to the development of international advisories, guidance, and recommendations in partnership with key European and Indo-Pacific partners (e.g., Estonia, Finland, Germany, Japan, the Netherlands), to improve civil societies’ and industry partners’ awareness of and resilience to state-sponsored cyber threats.

How we accomplish our mission

At CSE, our people are our greatest strength. Our workforce is made up of dedicated individuals who draw from their diverse skillsets, backgrounds, perspectives and experiences to protect our country, 24/7.

The complex problems we face require a wide range of perspectives, skills, and mindsets to tackle them, and this means increasing representation at all levels in the organization is a top priority.

With over 3,800 employees, CSE’s workforce is comprised of a wide range of specialists who are dedicated to keeping Canada and Canadians safe.

We are a thought leader and pathfinder in emerging digital and cyber technologies, with a research program focused on quantum cryptography, artificial intelligence and advanced analytics.

Innovation and agility are fundamental to how we execute our mission and increasingly represent the key to our future.

We operate within a robust oversight and review system and uphold our culture of compliance, lawfulness, and transparency in the conduct of our mandate to maintain the trust and confidence of Canadians.

We deliver to protect Canadians, defend Canadian values and reinforce Canada’s role as a trusted partner on the world stage.

CSE’s Organizational Structure