Canada commits $40.5M to boost defence sector in Northern territories

The funding will be delivered through the new Regional Defence Investment Initiative (RDII), which will be administered in the territories by the Canadian Northern Economic Development Agency (CanNor).

The programme will run over three years and support businesses and organisations in Nunavut, the Northwest Territories and Yukon.

The initiative is designed to help northern and Indigenous small- and medium-sized enterprises scale up, innovate and access opportunities in national and international defence supply chains.

Funding may also support defence-related strategic infrastructure and help build regional innovation ecosystems linked to Arctic readiness and security.

The investment forms part of Canada’s effort to meet defence commitments to NATO and expand the country’s industrial capacity in the North amid rising global security concerns in the Arctic.

“Northern and Indigenous businesses are at the core of regional economic development, and they play a vital role in Arctic security and community resilience,” Chartrand said.

“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.”

As outlined in Budget 2025, the federal government has already launched initial investments to strengthen Canada’s defence industrial base, allocating $6.6 billion over five years starting in 2025–26 under the forthcoming Defence Industrial Strategy.