Eligible businesses can now apply to the Regional Defence Investment Initiative to scale up, improve productivity and access supply chain opportunities

The Government will be investing $357.7 million to establish the new Regional Defence Investment Initiative (RDII). This is one of the first steps the government is making to ensure the forthcoming defence industrial strategy will take root and give rise to the kinds of jobs and industries that will protect our economy, power the Canadian Armed Forces and assert our sovereignty.

This includes investment in businesses whose products and services are dual-use, or who seek to pivot their activities to supply the defence sector. FedDev Ontario’s allocation through this national initiative is $94.7 million.

In order to lay the groundwork for the forthcoming Defence Industrial Strategy, the government making targeted regional investments to expand Canada’s defence industrial capacity–from coast to coast to coast. These initial investments will drive research and innovation, strengthen domestic supply chains, grow critical resource stockpiles, and improve access to funds for Canadian small- and medium-sized defence businesses.

Through existing programs, expertise and on-the-ground presence, the Regional Development Agencies will be supporting the growth of the defence industrial ecosystem, strengthening the relationship between government and industry while also driving innovation, investment, good-paying jobs and economic growth for all Canadians.

In addition, understanding the critical importance of the defence sector in the region, FedDev Ontario is allocating an additional $106 million from existing resources to total nearly $200 million in defence support.

To learn more about how to apply, visit the Regional Defence Investment Initiative in southern Ontario

“A secure Canada depends on a defence industry that is innovative, resilient, and ready. With these investments, we are strengthening our supply chains, accelerating cutting-edge technologies, and giving Canadian businesses the tools they need to support the CAF. This is about protecting our sovereignty, fueling economic growth, and ensuring Canada is never caught unprepared.”

The Honourable David J. McGuinty, Minister of National Defence   

“Canada is a nation of builders. The Canadian workers who define our defence industrial sector are delivering the modern capabilities the Canadian Armed Forces and our allies need. The Regional Defence Investment Initiative will strengthen Canada’s economic resiliency and assert our sovereignty. Investing in our defence industrial capacity across Quebec and every region of our country is how we build Canada Strong.”

The Honourable Minister Mélanie Joly, Minister of Industry and Minister responsible for the Economic Development Agency of Canada for the Regions of Quebec

“We are investing nearly $40 million to help Atlantic Canada’s defence businesses grow, modernize, and win more global contracts. That investment stays here in the region and strengthens Canada’s defence capacity.”

The Honourable Sean Fraser, P.C., K.C., Member of Parliament for Central Nova, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency

“Northern and Indigenous businesses are at the core of regional economic development and they play a vital role in Arctic security and community resilience. By investing in their capabilities, we bolster our defence and Arctic readiness, create good jobs, support local economies, and build a stronger North that creates local prosperity.”

The Honourable Rebecca Chartrand, Minister of Northern and Arctic Affairs and Minister responsible for CanNor

“Southern Ontario is home to some of Canada’s most advanced manufacturing, aerospace, defence and technology capabilities, and to businesses that power supply chains across the entire country. Through the Regional Defence Investment Initiative, the Federal Economic Development Agency for Southern Ontario will help more of these companies’ scale, innovate and integrate into domestic and global defence markets. This is about strengthening Canada’s sovereignty while creating good jobs and driving growth in communities across southern Ontario.”

The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister Responsible for the Economic Development of Southern Ontario

“When we empower Canadian companies to compete globally, we contribute to a safer future for all generations. Through these investments, FedNor will help protect Canada’s security while building a stronger defence sector that reflects the expertise of partners across Northern Ontario. This will create real opportunities for businesses and workers, here at home.”

The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

“The Prairie provinces already punch above their weight in Canada’s defence industry. This investment builds on that strength—giving businesses in Alberta, Saskatchewan, and Manitoba the support they need to scale up, compete for new opportunities, and meet the growing demand for Canadian-made defence capabilities. Further integrating more small and medium-sized Prairie businesses into defence supply chains will create good jobs while strengthening Canada’s security and sovereignty.”

The Honourable Eleanor Olszewski, Minister of Emergency Management and Community Resilience and Minister responsible for Prairies Economic Development Canada

“As the western most province, B.C. is poised to lead the way in defence innovation. The capacity to expand the defence sector in the Pacific is vast: with innovative technology, built in British Columbia and developed to protect Canada’s sovereignty. Pacifican’s investments through the Regional Defence Investment Initiative will catalyze an invaluable sector – creating jobs and building Canada strong.”

The Honourable Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada

“This aerospace hub is an example of the talent and potential we have here in the Greater Toronto Area and across southern Ontario to boost the competitiveness of the defence sector. The investments and the collaborations that will come with support through the Regional Defence Investment Initiative will help ensure long-term economic prosperity for the industry and the country.”

Jean Yip, Member of Parliament for Scarborough−Agincourt, Ontario

ADDITIONAL INFO

• The announcement builds on the Government of Canada’s commitment to increase defence spending to 2% of the gross domestic product (GDP).
• The Canadian defence industry contributes nearly $10 billion to GDP and supports over 81,000 jobs.
• Small and medium enterprises represent 92 percent of the defence industry and 40 percent of the jobs in that sector.
• Southern Ontario is home to more than 900 defence-capable organizations, anchored by major clusters in the Greater Toronto Area, Ottawa, and London, and is one of the country’s most dynamic centres for defence innovation.
• As announced in Budget 2025, the Government of Canada has put into action initial investments to support Canada’s defence industrial base by allocating $6.6 billion over five years on a cash basis, starting in 2025-26 under the forthcoming Defence Industrial Strategy.
• These initial investments will drive research and innovation, strengthen domestic supply chains, grow critical resource stockpiles, and improve access to funds for Canadian small- and medium-sized defence businesses.
• Visit FedDev Ontario’s website to learn more about the Regional Defence Investment Initiative in southern Ontario.