(OTTAWA, ON – November 5, 2026) – The Canadian Association of Defence and Security Industries (CADSI) congratulates the Carney government on the release of Budget 2026: Masters of our Destiny. Following the historic defence commitments announced earlier this year, Budget 2026 confirms that those investments will grow dramatically to more than $157 billion. This translates into roughly one out of every five dollars directed towards defence.

" We were pleased to see in this budget that Canada has a spending plan to achieve 4 per cent of GDP on defence by 2030-31 in line with our NATO commitments," said Christyn Cianfarani, President and CEO of CADSI. "What industry is looking for now is clarity. Our members need a refreshed defence policy and investment plan, along with greater visibility into how defence funding will be allocated and implemented. That visibility is essential for companies to plan, invest, hire, and grow alongside Canada's evolving defence needs.”

In this budget are several measures that support the goals of the Defence Industrial Strategy (DIS) and strengthen the environment for small and medium-sized businesses, which form the backbone of Canada's defence and security sector.

"We're encouraged to see the government helping Canadian companies to commercialize innovation, access financing, attract investment, and scale their operations," said Cianfarani. "Programs that support technology development, simplify the tax system, improve access to capital, and strengthen Canada's innovation ecosystem help create the conditions Canadian companies need to succeed and grow here at home."

Specific to creating the conditions for a strong and sovereign Canada, CADSI welcomes new funding of approximately $6.6 billion for emerging services and technologies through measures like the Defence Drone Initiative, Protecting Canada through Sovereign Intelligence, and Delivering the Benefits of AI for all Canadians.

Also highlighted within the budget are enhancements to the Scientific Research and Experimental Development (SR&ED) tax program to support commercialization, new incentives for investment in Canadian businesses, the transfer of the Canada Small Business Financing Program to BDC, increased flexibility for Regional Development Agencies, and measures to expand sovereign AI compute capacity in Canada.

"We are pleased to see measures that reinforce the Defence Industrial Strategy's objective of growing and strengthening Canada's domestic industrial base," said Cianfarani. "The opportunity before Canada is significant. What matters now is public accountability and execution. CADSI will be looking for clear priorities, long-term investment planning, and measurable results that demonstrate Canada's defence industrial base is being strengthened while ensuring the Canadian Armed Forces receive the capabilities they need."

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