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Ottawa Launches $357.7 Million Regional Defence Investment to Build Industrial Capacity

The regionally run program aims to speed small suppliers into defence supply chains ahead of a $6.6 billion industrial strategy.

Overview

  • The new Regional Defence Investment Initiative will channel $357.7 million through Canada’s seven regional development agencies to grow the defence ecosystem nationwide.
  • FedDev Ontario received $94.7 million from the federal allocation and is adding $106 million from existing resources, creating nearly $200 million for southern Ontario firms.
  • PrairiesCan opened applications with $48.2 million over three years, and ACOA is delivering $38.2 million over three years for Atlantic Canada’s defence companies.
  • Ottawa says the initiative targets research and innovation, stronger domestic supply chains, critical resource stockpiles, and better financing access for small and medium-sized businesses, including dual‑use and pivoting firms.
  • Officials describe the program as an initial step within the previously budgeted $6.6 billion Defence Industrial Strategy, with the full plan expected before Christmas and counted toward this fiscal year’s defence spending goals.