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Canada's main buyer of big-ticket military equipment would get its own board, commercial contracting powers and a dedicated minister. The overhaul comes about a year after the agency first opened inside Public Services and Procurement Canada.
Driving the news
The federal government introduced Bill C-40, Strengthening Canada's Defence Sector, to establish the Defence Investment Agency (DIA) as a Crown corporation within the National Defence portfolio.
Secretary of State (Defence Procurement) Stephen Fuhr said Canada needs "institutions built to match the scale and urgency of that ambition."
The details
The bill creates the Canadian Corporation for Defence Investment, which will keep operating as the DIA.
The corporation would operate at arm's length and report to a new Associate Minister of National Defence for Procurement, a post created through amendments to the National Defence Act.
It would have its own board of directors and greater authority to negotiate and manage contracts, along with powers to engage in defence production, procurement and investment.
DND, the Canadian Armed Forces and the Canadian Coast Guard would keep responsibility for setting capability requirements, operational priorities and acceptance criteria.
The government would retain strategic direction and certain approval powers. Responsibility for the Defence Production Act stays with the Minister of Public Services and Procurement.
What they're saying
Fuhr said the Crown corporation model would let the agency move faster, make strategic investments and use defence spending to build a domestic defence industry.
Defence Minister David McGuinty said the change would give the military and coast guard quicker and more reliable access to the capabilities they need. Public Works Minister Joël Lightbound said the bill signals that large-scale defence production and procurement are permanent priorities.
DIA CEO Doug Guzman said he will lead the agency through the transition, with a focus on turning defence investment into industrial capacity and sovereign capability.
By the numbers
October 2025: The DIA launched as a special operating agency within Public Services and Procurement Canada.
$103.8 million: Funding for the agency over five years in the spring economic update, plus another $22 million in ongoing annual funding. ctvnews
Up to 12: Submarines under negotiation with Germany's Thyssenkrupp Marine Systems (TKMS) for the Canadian Patrol Submarine Project.
550: The size of the Armoured Combat Support Vehicle fleet after a deal with General Dynamics Land Systems-Canada for 190 more vehicles.
The bigger picture
The DIA is the central delivery partner for the Defence Industrial Strategy, launched Feb. 17, 2026, and its build-partner-buy approach.
Under the strategy, the government has awarded the Canadian Modular Assault Rifle contract to Colt Canada and named Saab preferred supplier for airborne early warning and control. It has also signed agreements with Australia and BAE Systems Australia for Arctic over-the-horizon radar and awarded Telesat the Enhanced Satellite Communications Project – Polar.
The government says the Crown corporation would also support joint procurement with allies, including initiatives tied to Canada's participation in Security Action for Europe (SAFE) and Readiness 2030.
Background
The government signalled the change in its spring economic update, which promised new legislation to increase the agency's authority and budget and place it under the oversight of a new minister. A day before that update, Guzman told MPs he did not know whether the government had decided on a Crown corporation or an agency. ctvnewsctvnews
The government says C-40 differs from Bill C-31, which proposed keeping the DIA as a government agency rather than making it a Crown corporation.
What's next
The bill must pass through Parliament before the DIA can become a Crown corporation. The government has not said who will serve as associate minister. Fuhr currently oversees the agency as secretary of state.
