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Support for Ottawa defence companies ramps up with slew of government announcements

December 12, 2025

Ottawa firms involved in the defence sector can now apply for funding under the federal government’s Regional Defence Investment Initiative (RDII).

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Ottawa firms involved in the defence sector can now apply for funding under the federal government’s Regional Defence Investment Initiative (RDII). According to a news release from FedDev Ontario, the RDII is a $357.7-million initiative that will be delivered by Canada’s regional development agencies. It aims to accelerate the integration of businesses and regional ecosystems into domestic and international defence supply chains while increasing their industrial and innovation capacity. This includes businesses with products and services that are dual-use, or that seek to pivot their activities to supply the defence sector. FedDev Ontario’s allocation through the national initiative is $94.7 million. FedDev is allocating an additional $106 million from its own resources to total nearly $200 million in defence support. “A strong and competitive defence industry is essential to Canada’s sovereignty, security, and long-term economic prosperity,” the release said. “Southern Ontario is home to a dynamic defence ecosystem, with strengths in advanced manufacturing, aerospace, automotive technologies, cybersecurity, robotics and AI. The region is well-positioned to seize new defence opportunities and strengthen its role in global supply chains.” Evan Solomon, the minister responsible for the FedDev Ontario, announced the initiative last week in Downsview, Ont. “Southern Ontario is a powerhouse for defence-related manufacturing and innovation – with an ecosystem of innovative companies ready to deliver advanced technologies and regional expertise needed to strengthen Canada’s defence industrial base and enhance national security,” said Solomon in the release. According to FedDev, southern Ontario is home to more than 900 defence-capable organizations, anchored by major clusters in the GTA, Ottawa and London. As announced in Budget 2025, the federal government has allocated $6.6 billion over five years on a cash basis, starting in 2025-26. The announcement of the RDII comes as Ottawa is being considered as the headquarters of the new Defence, Security and Resilience Bank (DSRB), an international institution styled after the World Bank that is planned to be established by the end of 2026 and would serve 40 member countries. According to media reports, Ottawa is being considered for the HQ alongside other Canadian cities including Toronto and Montreal. It was also announced this week that retired Gen. Rick Hillier will serve as honourary chair of the National Defence Innovation Hub Task Force for the capital region. According to a news release from Invest Ottawa, this appointment strengthens and accelerates the execution of the region’s Defence Innovation Hub Strategy, which aims to bolster Canada’s sovereign capability, accelerate innovation and enhance support for Canada’s military. One of the duties of the task force will be to guide the region’s bid to host the DSRB headquarters. “(Gen. Hillier’s) leadership and experience will be invaluable as we accelerate our Defence Innovation Hub Strategy here in the Capital Region, together with our partners from Gatineau, and build on the success of more than 300 companies in the defence sector in our region”, said Ottawa Mayor Mark Sutcliffe in the Invest Ottawa release.