Summary#

This bill gives the government authority to spend up to CAD $8,580,271,678 from the Consolidated Revenue Fund for 2025–26, based on Supplementary Estimates (A). It mainly funds the Department of National Defence (DND) and the Communications Security Establishment (CSE). Each item takes effect as of April 1, 2025 and must be used only for the purposes listed in the schedule.

• Funds DND operating, capital, and grants/contributions totalling $8,210,211,590 (Schedule; DND Votes 1a, 5a, 10a).
• Funds CSE program expenditures of $370,060,088 (Schedule; CSE Vote 1a).
• Lets DND commit up to $86,760,127,023 for Votes 1, 5, and 10, with an estimated $52,954,717,761 to be paid in future years (Schedule; DND Vote 1a).
• Allows CSE and DND to spend certain revenues they collect to offset their costs in-year (Financial Administration Act s.29.1; Schedule; CSE Vote 1a; DND Vote 1a).
• Permits year-end accounting adjustments before Public Accounts are tabled, without new payments from the fund (Adjustments clause).

What it means for you#

• Households

  • No change to tax rates or direct fees in this bill. It only grants spending authority for 2025–26 (Amount clause; Schedule).
  • Defence and cybersecurity operations continue to be funded for this fiscal year (Schedule).

• Workers (federal employees and contractors)

  • DND operating funding supports salaries, operations, and services under Vote 1a (Schedule; DND Vote 1a).
  • CSE funding supports its cybersecurity and signals intelligence operations (Schedule; CSE Vote 1a).
  • DND may make payments for pension, insurance, and social security arrangements for staff hired outside Canada, and for program administration costs (Schedule; DND Vote 1a).

• Businesses

  • DND capital funds ($804,619,191) may support procurement of equipment and infrastructure (Schedule; DND Vote 5a).
  • DND grants and contributions ($3,439,460,843) may include monetary payments, goods or services provided in lieu of payment, or access to facilities for defence purposes, as authorized by law (Schedule; DND Vote 10a).
  • DND can provide materials or services to outside parties on a recoverable (repayable) basis (Schedule; DND Vote 1a).

• Other governments and public bodies

  • DND can make recoverable advances and provide services to other federal departments, agencies, and other governments (Schedule; DND Vote 1a).
  • Grant and contribution authorities may support partners for defence purposes, subject to approvals (Schedule; DND Vote 10a).

• Timing and administration

  • All items are deemed effective April 1, 2025, covering the full fiscal year (Effective date clause).
  • Treasury Board controls allotments within DND’s total commitments (Schedule; DND Vote 1a).

Expenses#

Estimated net cost: CAD $8,580,271,678 for FY2025–26 (cash spending authority tied to Supplementary Estimates (A)).

• Key appropriations from the schedule:

• Commitment authority: DND may enter into total commitments up to $86,760,127,023 for Votes 1, 5, and 10, even if payments are due in later years; an estimated $52,954,717,761 will come due in future years (Schedule; DND Vote 1a).
• Net voting: Both CSE and DND may spend certain revenues they collect in-year to offset related costs; the bill does not state the amounts (Financial Administration Act s.29.1; Schedule; CSE Vote 1a; DND Vote 1a). Data unavailable.
• Recoverable expenditures/advances: DND can make repayable outlays when providing materials or services to others; net fiscal impact depends on repayments (Schedule; DND Vote 1a). Data unavailable.
• Accounting adjustments: Appropriations may be charged after year-end for adjustments before the Public Accounts are tabled; no extra draw on the fund is authorized by this clause (Adjustments clause).

Proponents' View#

• Ensures continuity of defence readiness and cybersecurity by providing $8,210,211,590 to DND and $370,060,088 to CSE for 2025–26 (Schedule).
• Supports equipment and infrastructure needs through $804,619,191 in capital funding and multi-year procurement via commitment authority up to $86,760,127,023 (Schedule; DND Votes 5a, 1a).
• Funds partnership tools: $3,439,460,843 in grants and contributions can be delivered as money, goods/services in lieu of payment, or facility access for defence purposes (Schedule; DND Vote 10a).
• Avoids service gaps by deeming items effective April 1, 2025, covering the entire fiscal year (Effective date clause).
• Maintains controls and oversight: Treasury Board allots commitments; spending must match item purposes; year-end adjustments occur within standard public accounts processes (Schedule; Adjustments clause).
• Improves operational efficiency by letting departments offset costs with in-year revenues for internal services and other operations (Financial Administration Act s.29.1; Schedule; CSE Vote 1a; DND Vote 1a).

Opponents' View#

• Limited detail in the Act itself; recipients and specific projects are not listed, which can reduce transparency without close review of the Supplementary Estimates (A) (Schedule).
• Future fiscal risk: DND’s commitment authority of $86,760,127,023, with $52,954,717,761 payable in future years, may lock in obligations that pressure later budgets if costs rise (Schedule; DND Vote 1a).
• Net voting and recoverable spending can obscure gross expenditures, making it harder to compare total activity across years (Financial Administration Act s.29.1; Schedule; CSE Vote 1a; DND Vote 1a).
• Large grants and contributions envelope ($3,439,460,843) allows non-cash support (goods/services, facilities), which can complicate tracking of benefits and valuation (Schedule; DND Vote 10a).
• CSE activities involve national security and may be classified, limiting public visibility into how $370,060,088 is used (Schedule; CSE Vote 1a).
• The inclusion of authority to pay certain ministers’ salaries within a DND vote may reduce clarity about where such central costs are recorded (Schedule; DND Vote 1a).