Will Expanded Defence Investment Agency Powers Streamline Procurement?

The Liberal government plans to significantly expand the newly created Defence Investment Agency (DIA), giving it broader authority beyond standard military procurement and a wider role that could touch other areas of the economy. These plans were outlined in a ways and means motion in the House of Commons and formalized in May 2026 through the Defence Investment Agency Act, part of the Budget 2025 Implementation Act No. 2. The Act establishes the DIA as a stand-alone entity led by a dedicated minister and CEO, amends the Defence Production Act to broaden its scope, and grants the agency powers to streamline procurement, support domestic industry, and enhance national security.

On this week’s Expert Series, Jody Thomas, former National Security and Intelligence Advisor to the Prime Minister and former Deputy Minister of Defence; Troy Crosby, former Assistant Deputy Minister (Materiel) at the Department of National Defence; and Dr. Philippe Lagassé, Barton Chair at the Norman Paterson School of International Affairs, examined the DIA’s proposed expansion, ministerial oversight, and legislative updates, discussing whether these changes could drive meaningful procurement reform and shift a long-standing culture of overcautiousness.

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