C-40 , 45th Parliament, 1st session Monday, May 26, 2025, to present

A legislative summary is currently being prepared for this bill by the Parliamentary Information, Education and Research Services of the Library of Parliament. Meanwhile, the following executive summary is available.

On 6 October 2026, the Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant introduced Bill C-40, An Act respecting production, procurement and investment in relation to national defence and national security (Strengthening Canada's Defence Sector Act) in the House of Commons and it was given first reading.

Bill C-40 contains measures relating to production, procurement and investment in respect of national defence and national security.

Part 1 enacts the Canadian Corporation for Defence Investment Act. That Act establishes the Canadian Corporation for Defence Investment, a corporation whose mandate is to, among other things, carry out activities related to production, procurement and investment in respect of national defence for the benefit of the Canadian Forces or the Department of National Defence or for associated governments. Part 1 also makes related and consequential amendments to other Acts.

Part 2 amends the Defence Production Act to, among other things,

(a) extend the application of that Act to supplies and projects related to national security and to services related to national defence and national security;

(b) provide that the Minister of Public Works and Government Services has the authority to acquire supplies and services related to national defence and national security that are required for the purposes of a department, board or agency of the Government of Canada, subject to certain exceptions;

(c) extend the purposes for which that Minister may engage in stockpiling to include national defence and national security, including economic security, and the defence and security of an associated government or other state;

(d) provide that Minister with new financial authorities, including the authority to enter into financial transactions for the purpose of investment in national defence and national security sectors; and

(e) establish procurement rules in relation to national defence and national security.

Part 2 also makes consequential amendments to the Access to Information Act and terminology changes to certain legislative texts.

Part 3 provides for a review of the operation of the Canadian Corporation for Defence Investment Act and the amendments to the Defence Production Act.