Feds to spend nearly $40 million on Atlantic Canada’s defence sector

Minister of Justice Sean Fraser arrives to a cabinet meeting on Parliament Hill in Ottawa on Tuesday, Nov. 4, 2025. THE CANADIAN PRESS/Sean Kilpatrick

Canada’s Minister of Justice announced the federal government will spend close to $40 million to support Atlantic Canada’s growing aerospace and defence sector.

Minister Sean Fraser, who’s responsible for the Atlantic Canada Opportunities Agency (ACOA), said businesses in the region can now apply to the Regional Defence Investment Initiative (RDII) “to help Atlantic Canada’s defence businesses grow, modernize and win more global contracts.”

ACOA is delivering $38.2 million over three years through the initiative starting in 2025-26, said a Friday news release. It will mostly help small and medium-sized enterprises expand capabilities, boost productivity and connect to defence supply chains at home and abroad, said the release.

“That investment stays here in the region and strengthens Canada’s defence capacity,” said Fraser.

Companies in Atlantic Canada are already pushing marine, aerospace and defence technology boundaries and manufacturers are advancing dual-use solutions to serve the civilian and defence markets, said the release. Manufacturers are bringing shipbuilding, cyber resilience, sensor and acoustic systems to global customers.

“The RDII will help more businesses pursue certifications, invest in advanced technologies and compete for contracts with major defence and security partners,” said the release.

ACOA will be hosting information sessions to provide guidance and details on the application process. Companies can register for one of the sessions on ACOA’s website.

More than 200 firms in Atlantic Canada employ more than 10,000 people in aerospace and defence, representing 20 per cent of the country’s defence industry employment and more than 34 per cent of marine industry employment.

The federal government announced it will spend $6.6 billion to support the defence industry over five years under the Defence Industrial Strategy. RDII is a three-year initiative which will deliver $357.7 million to Canada’s regional development agencies.