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ARTICLE · 21 JULY 2026

Bill C-31 Proposes Major Defence Production Act Changes Affecting Canadian Defence Procurement

Borden Ladner Gervais LLP
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Canada's proposed amendments to the Defence Production Act signal a fundamental shift in defence procurement strategy, expanding ministerial powers, broadening the scope to include defence services...

CanadaGovernment, Public Sector
Marin Leci
Marin Leci
Christian Halt
Christian Halt
Quinn Hughes
Quinn Hughes
Kaeli Kristensen
Kaeli Kristensen
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On June 3, 2026, the House of Commons completed second reading of Bill C-31, Budget 2025 Implementation Act, No. 2 (Bill C-31) which will now proceed to study in the Standing Senate Committee on National Finance. Alongside numerous policy changes to Canada’s defence procurement strategy, Bill C-31 includes amendments to the Defence Production Act, RSC 1985, c D-1 (the DPA).1

The tabled amendments to the DPA reflect Canada’s prioritization of defence and security, including changes to the strategy for defence procurement.

I. Definition & Scope Changes – Associated Governments and Defence Services

Notably, Bill C-31 proposes the following amendments to the DPA, altering key definitions that affect the scope of application of the DPA. Generally, these amendments serve to recognize defence and security functions where Canada participates in cooperative defence initiatives with “associated” allied governments, now expressly including the European Union and its Member States. These

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