Canada tabled Bill C-40 to turn its Defence Investment Agency into a Crown corporation with its own board and a minister focused on procurement. The government presents greater commercial flexibility and fewer approval layers as objectives. Military institutions would continue to set capability requirements, while certain government approvals and ministerial oversight would remain within the proposed structure.
Canada’s government tabled Bill C-40 on October 6 to turn the Defence Investment Agency into a Crown corporation. The proposed Canadian Corporation for Defence Investment would have its own board and report to a new associate minister of national defence responsible for procurement. The government describes greater independence and quicker decisions as intended advantages.[1], [2]
National Defence and the Canadian Armed Forces would continue to define capability requirements, operational priorities and acceptance criteria. The Canadian Corporation for Defence Investment would translate these into procurement, production and investment work. The responsible minister would retain strategic direction and oversight, with government keeping certain approval powers. Responsibility for the Defence Production Act would remain with the Minister of Public Services and Procurement.[1]
The earlier Bill C-31 had proposed a government agency. C-40 instead specifies a corporation with broader authority to manage defence investments and commercial contracts. The agency was created in October 2025 within Public Services and Procurement Canada as a Special Operating Agency. It has a central role in implementing the Defence Industrial Strategy launched in February, including its approach of domestic production, partnerships and purchases.[1]
