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 Defense Investment Agency (DIA) to overhaul and streamline our defense 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 Defense 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 maximize Canada’s generational defense investments to strengthen our industrial base, supply chains, and sovereign capabilities.
This legislation:
- Creates the Canadian Corporation for Defense Investment, which will continue to operate under its existing name, the Defense 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 defense production, procurement, and investment activities in support of national defense and the operational priorities, capability requirements and acceptance criteria established by the National Defense (DND) and the Canadian Armed Forces (CAF);
- Maintains the Government of Canada’s oversight of the new Crown Corporation;
- Amends the National Defense Act to create an Associate Minister of National Defense 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 Defense portfolio, and
- Integrates the DIA with the National Defense portfolio to further reduce red tape that slows procurement down and ensures that defense procurement in Canada is focused on equipping the National Defense and CAF with the tools they need to defend Canada.
Bill C-40: Strengthening Canada’s Defense Sector represents the next step in the Government of Canada’s modernization and transformation of Canadian defense procurement.
The DIA was launched to accelerate procurement and use defense spending to strengthen Canadian industry, build sovereign capabilities, and catalyzing investment in the Canadian defense 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 defense 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.
