Government of Canada introduces legislation to accelerate defence procurement, strengthen Canadian industry, and reinforce Canadian sovereignty

OTTAWA, ON, Oct. 6, 2026 /CNW/ -- The world is more dangerous and divided. The international rules-based order is fading, and global conflict rages on. Canada's Government is focused on what we can control: rebuilding, rearming, and reinvesting in the Canadian Armed Forces (CAF). In October 2025, Canada's new government established the Defence Investment Agency (DIA) to overhaul and streamline our defence procurement. Since then, the DIA has facilitated key purchases that strengthen Canada's strategic autonomy. In a rapidly changing world, Canada must move quicker to keep Canadians safe.

That is why, today, the Government of Canada introduced Bill C-40: Strengthening Canada's Defence Sector, to establish the DIA as a Crown corporation. This reform will provide the DIA with the authorities, operational flexibility, specialized expertise and organizational structure needed to deliver critical capabilities quicker. The DIA will have greater commercial flexibility and more autonomous approvals, allowing it to work better with industry and deliver better value for money. It will maximise Canada's generational defence investments to strengthen our industrial base, supply chains, and sovereign capabilities.

This legislation:

• Creates the Canadian Corporation for Defence Investment, which will continue to operate under its existing name, the Defence Investment Agency. It will have more independence, its own Board of Directors, and greater authority to negotiate and manage contracts;
• Empowers the DIA to engage in defence production, procurement, and investment activities in support of national defence and the operational priorities, capability requirements and acceptance criteria established by the National Defence (DND) and the Canadian Armed Forces (CAF);
• Maintains the Government of Canada's oversight of the new Crown Corporation;
• Amends the National Defence Act to create an Associate Minister of National Defence for Procurement, who will be responsible to Parliament for the DIA, consolidate procurement and commercial authorities and strengthen accountability for procurement delivery within the National Defence portfolio, and
• Integrates the DIA with the National Defence portfolio to further reduce red tape that slows procurement down and ensures that defence procurement in Canada is focused on equipping the National Defence and CAF with the tools they need to defend Canada.

Bill C-40: Strengthening Canada's Defence Sector represents the next step in the Government of Canada's modernization and transformation of Canadian defence procurement.

The DIA was launched to accelerate procurement and use defence spending to strengthen Canadian industry, build sovereign capabilities, and catalysing investment in the Canadian defence sector. As a Crown corporation it will have the commercial tools to deliver on its mandate. It will support Canada's security and long-term economic growth, while remaining accountable to Parliament, and the Government of Canada.

The DIA will continue to strengthen Canada's ability to work with allies and security partners. The Corporation would support joint defence procurement programs, including initiatives aligned with Canada's participation in Security Action for Europe (SAFE) and Readiness 2030. Greater international collaboration will improve interoperability, provide Canadian suppliers with greater access to allied markets and supply chains, capitalize on economies of scale, and support Canada's broader security and diplomatic objectives.

Canada is making generation investments to transform our defence sector. Empowered as a Crown corporation, the DIA will harness defence investment to catalyse industry, secure critical supply chains, and drive innovation and investment. In a rapidly changing world Canada's government is building a stronger, more self-reliant country. One that is fully ready for the future. One that guarantees Canadians have tools needed to protect our country.

Quote

"Canada is making a generational investment in our defence and security, and we need institutions built to match the scale and urgency of that ambition. Establishing the Defence Investment Agency as a Crown corporation would give it the flexibility and specialized expertise to move faster, make strategic investments and deliver the capabilities our Armed Forces need. Just as importantly, it would allow us to use our defence investments to strengthen our sovereignty while building a robust Canadian defence industry, attracting investment and creating lasting economic opportunities and good jobs here at home."

The Honourable Stephen Fuhr
Secretary of State (Defence Procurement)

"We look forward to continued collaboration with the Defence Investment Agency to further strengthen defence procurement. As a Crown corporation within the National Defence portfolio, the DIA will have the direct authorities and added flexibility to streamline procurement so that the Canadian Armed Forces and Canadian Coast Guard have more secure, reliable and quicker access to the capabilities they need to protect our sovereignty and keep Canadians safe."

The Honourable David J. McGuinty
Minister of National Defence

"In a more dangerous and divided world, Canada is taking action and establishing a clear and compelling path forward. With the introduction of this legislation, we are making clear that large-scale, agile defence production and procurement is here to stay. Procurement and investment must live together, by connecting the capabilities our armed forces need with the investments that will deliver them and the industrial capacity that will sustain them. As a Crown corporation, the Defence Investment Agency will integrate these priorities, delivering critical capabilities to our armed forces more efficiently while strengthening Canadian industry, driving innovation and creating economic opportunity for years to come."

The Honourable Joël Lightbound
Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant

"Establishing the Defence Investment Agency as a Crown corporation is an important step in building the organization Canada needs to meet today's defence and security challenges. It will give the DIA the tools, flexibility, and expertise to move faster and make strategic investments that deliver capabilities for the Canadian Armed Forces and the Canadian Coast Guard. Our responsibility will be to turn Canada's defence investments into results, strengthening our industrial base, building sovereign capacity, deepening partnerships with industry, and creating economic opportunities at home. I am proud of what the DIA team has accomplished since our launch, and I look forward to leading this transition and the organization's next chapter."

Doug Guzman 
Chief Executive Officer, Defence Investment Agency

Quick facts

• The DIA was initially established as a Special Operating Agency within Public Services and Procurement Canada, allowing the organization to begin operations while the Government of Canada developed its longer-term organizational model.
• Establishing the DIA as a Crown corporation within the National Defence portfolio is intended reduce handoffs, consolidate procurement and commercial authorities and strengthen accountability for procurement delivery.
• By consolidating responsibility and expertise within one organization, the DIA will reduce duplication, streamline decision-making, and accelerate procurement from validated requirement definition to contract award, while DND, the CAF and the CCG retain responsibility for defining capability requirements, operational priorities and acceptance criteria.  
• The DIA is a central delivery partner for Canada's Defence Industrial Strategy and its Build–Partner–Buy approach to defence procurement.
• The proposed Corporation will be accountable to the Government of Canada through a responsible Minister and subject to legislated governance, financial, audit, reporting and parliamentary oversight requirements.

Associated links

• Backgrounder: Introduction of legislation to strengthen Canada's Defence Sector
• Defence Investment Agency
• Canada's Defence Industrial Strategy

Follow us on X (Twitter)
Follow us on Facebook

SOURCE Defence Investment Agency

Contacts: Sofiya Sapeha, Press Secretary, Office of the Honourable Stephen Fuhr, [email protected]; Media Relations, Defence Investment Agency, [email protected]