Today, the Honourable Stephen Fuhr, Secretary of State for Defence Procurement, tabled Bill C-40 the Strengthening Canada’s Defence Sector Act.
Under this legislation, the Defence Investment Agency (DIA) would become a crown corporation and would carry out procurement, production and investment activities in support of national defence and the operational requirements established by the Department of National Defence and the Canadian Armed Forces. Simply put, the DIA would be responsible for translating military requirements into capabilities and leveraging the Government’s generational defence investments to deliver greater security and economic benefits for Canada. This Crown corporation would be overseen by an Associate Minister of National Defence.
Recently, the DIA celebrated its first anniversary, following its establishment on Oct 2nd 2025, by Canada’s new government and Prime Minister Mark Carney. The Defence Investment Agency was established as a Special Operating Agency within Public Services and Procurement Canada to begin transforming how Canada procures defence capabilities.
Creating this Crown corporation would also strengthen the connection between defence procurement and Canada’s broader economic and national security objectives. Through its procurement and investment activities, the DIA would continue to build Canadian industrial capacity, strengthen critical supply chains, support innovation and technology development, and attract domestic and international investment, while also reinforcing sovereign capabilities in areas essential to Canada’s security.
The Crown corporation would remain accountable to the Government of Canada through the enabling legislation, a responsible Minister, financial and reporting requirements, audits, and parliamentary oversight.
The world is becoming more dangerous and more divided. We need to equip our Canadian Armed Forces and enable them to adapt to the evolving security environment, by ensuring our troops have the right equipment, at the right time, to protect Canada and Canadians. This is exactly what Canadians voted for. We need institutions built to match the scale and urgency of our 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.
Key Messages
In a dangerous and divided world, Canada’s government is ensuring the Canadian Armed Forces get the equipment they need, when they need it.
We have taken historic action to streamline the procurement of key defence capabilities while maximizing benefits for Canadian workers across the supply chain – and we are not satisfied.
Through Bill C-40, Strengthening Canada’s Defence Sector Act, we propose to establish the Defence Investment Agency as a Crown corporation.
As a Crown corporation, the DIA will have enhanced operational authority and expertise needed to move complex projects forward while building out Canada’s defence industrial base.
We will drive investment into Canadian industrial capacity while strengthening our national security and meeting our international defence commitments.
These capabilities will be developed by Canadian workers using Canadian steel, aluminum, and ingenuity.
As Canada meets this changing global landscape with determination and resolve, we will ensure that our defence procurement system keeps pace.
Why a Crown corporation?
Establishing the DIA as a Crown corporation is the next step in our plan to build a defence procurement system that can respond to today’s evolving security environment.
As a Crown corporation, the DIA will:
Operate with greater authority to negotiate and manage contracts using commercial practices that are more familiar to industry;
Bring together procurement and strategic investment considerations more efficiently under a single mandate; and
Offer accelerated procurement through improved access to suppliers and reduced administrative burdens.
Together, these authorities will strengthen Canada’s relationships with industry leaders and international partners while delivering better outcomes for the Canadian Armed Forces.
We will ensure that Canada has the industrial capacity and resilience to protect Canadians, defend Canadian sovereignty, and meet its responsibilities at home and alongside allies.
