Editor’s Note
Welcome to the third briefing of In Defence of Canada.
If the past few weeks highlighted the vulnerability of Canada’s orbital infrastructure, this week focuses on the capital required to secure it.
Space is the invisible backbone of the Canadian economy. As Brigadier-General Christopher Horner outlines in this week’s Feature Analysis , losing access to our orbital assets would trigger a domestic crisis costing an estimated $1 billion in GDP per day.
The government is moving to mitigate that risk. The Department of National Defence has released its $51.7 billion spending plan for 2026-27, marking a structural pivot to modernize the RCAF into an operationally ready “Air and Space Force.” This plan includes a new Space Rocketry Challenge—backed by up to $50 million annually—to accelerate domestic launch vehicle development. Paired with a $900 million federal injection into dual-use quantum technologies, Canada is actively funding the capacity to build, launch, and defend its assets on sovereign soil.
In this issue, we break down DND’s multi-billion dollar roadmap, the reality of the contested space domain, and how allied forces are rapidly deploying cyber units to protect launch infrastructure.
Marc Boucher
Editor-in-Chief
SpaceQ Media Inc.
There may be some changes to the design of the newsletter over the coming issues as we assess how it’s being received. If you feel we’ve missed something, or there is a topic that needs more coverage, please reach out to me directly at mboucher@spaceq.ca.
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The Lead
In achieving the 2% of GDP defence spending target, Canada’s Department of National Defence (DND) has outlined a $51.7 billion spending plan for 2026-27. While core allocations target Ready Forces ($14.6B) and Procurement ($12.8B), the plan mandates a Force Structure Review to transition the Royal Canadian Air Force into a modern “Air and Space Force.”
- Space Rocketry Challenge: Reinforcing the recent Spaceport Nova Scotia announcement, DND is launching a Space Rocketry Challenge. The initiative will receive $25 million in 2026-27, scaling to $50 million annually, specifically to accelerate domestic launch vehicle development and reduce reliance on foreign rockets.
- NORTHWATCH Replaces Legacy Radar: The plan confirms that the Northern Wide-Area Tracking and Continuous Horizon (NORTHWATCH) program has replaced the Polar Over-the-Horizon Radar program. NORTHWATCH will utilize a hybrid network of ground and space-based sensors to meet modernized NORAD surveillance requirements.
Read the full breakdown of DND’s budget and multinational space exercises at SpaceQ
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Feature Analysis: Defending Canada’s “Invisible Backbone”
For Brigadier-General Christopher Horner, Commander of the 3 Canadian Space Division, space is a highly contested warfighting domain that underpins modern civil society.
Speaking on the Battle Rhythm podcast, Horner warned that losing access to orbital assets would cripple the country, costing Canada an estimated $1 billion in GDP daily. If adversaries disable Position, Navigation, and Timing (PNT) constellations, the failures are instantaneous: ATMs go dark, precision agriculture fails, and logistics chains freeze.
To counter rapid advances in adversary electronic warfare and anti-satellite (ASAT) capabilities, 3 Canadian Space Division is expanding its personnel to 1,200 by 2035. Horner stressed Canada is not arming for kinetic orbital strikes. The strategy relies on Space Domain Awareness—tracking the “pattern of life” of 14,000 orbital objects to identify threats.
Crucially, Horner views domestic launch as the ultimate deterrent. By targeting a 96-hour responsive launch capability from Canadian soil, the military aims to rapidly replace degraded satellites, neutralizing an adversary’s strategic advantage and ensuring the continuous flow of data.
Read the full analysis of Horner’s strategic mandate at SpaceQ
Tactical Briefs
- Ottawa Injects $900M into Defence & Quantum Tech: On March 19, the federal government announced a $900 million investment through the National Research Council (NRC) to accelerate the Defence Industrial Strategy. A core focus is commercializing dual-use quantum technologies, including mandates to develop quantum sensors capable of detecting gravitational variations from orbit, and quantum encryption to secure space-enabled communications against advanced spoofing and jamming. Read the official ISED release
- INO and CRIM Merge to Form Luqia Technologies: Backed by a $52 million federal investment, the National Optics Institute (INO) and the Computer Research Institute of Montréal (CRIM) have merged to form Luqia Technologies. Launching April 1, the new lab aims to bridge the commercialization “valley of death” by integrating INO’s world-class photonics with CRIM’s advanced AI. Luqia will prioritize dual-use “intelligent systems” for commercial markets and national security, focusing heavily on Arctic surveillance and sovereign cybersecurity capabilities. Read the full breakdown at SpaceQ
- Wyvern Secures $3M for Space-Based Maritime ISR: As part of a broader $6.1 million Regional Defence Investment Initiative (RDII) announcement in Alberta today, PrairiesCan awarded Edmonton-based Wyvern nearly $3 million. The investment will accelerate the development of Wyvern’s hyperspectral satellite technologies specifically for ship identification and maritime monitoring. With five satellites already in orbit, this funding integrates Wyvern’s high-resolution Earth observation data directly into Canada’s defence supply chain for critical domain awareness. Read the federal funding release here
Global Watch
- Cybersecurity at the Spaceport: Recognizing physical spaceports as critical digital vulnerabilities, the U.S. Space Force activated the 630th Cyberspace Squadron at Vandenberg Space Force Base. Operating alongside a sister unit in Florida, the squadron’s mission is to defend launch ranges in real-time from adversary cyberattacks. Read the Space Systems Command release
- Pivoting Space Command & Control: Following a Pentagon report revealing the ATLAS C2 upgrade failed to reach “minimum viable capability,” the Space Force is shifting gears. Officials will begin issuing contracts for “Kronos,” a rapid-acquisition initiative to modernize space battle management software and retire the aging SPADOC system. Read the full report at Breaking Defense
- Arctic SATCOM Operational Acceptance: In a win for NORAD and allied forces, the U.S. Space Force’s Enhanced Polar System – Recapitalization (EPS-R) program achieved operational acceptance on March 20, extending highly jam-resistant, secure satellite communications across the Arctic domain into the 2030s. Read the official Space Force announcement
- Defeating Electronic Warfare: As adversaries increasingly use sophisticated Electronic Warfare (EW) to disrupt allied C2, the Space Force awarded a contract to AnySignal to field a resilient, self-healing network for Military Satellite Communications (MILSATCOM). The platform dynamically adjusts links and routing to maintain connectivity in Contested, Denied, and Degraded environments. Read the contract breakdown at IC News
Guest Opinion
Want to Fix Space Acquisition? Start with the Program Managers
With the Department of National Defence laying out a massive $51.7 billion spending plan and considering a new Space Rocketry Challenge, the capital is finally flowing into Canada’s defence sector. But as our allies have learned, funding a project and successfully fielding it are two very different things.
Writing an op-ed for Breaking Defense this week, U.S. Space Force Maj. Reed “Jimi” Schafer warns that allied air and space programs are consistently riddled with delays and cost overruns. While politicians focus on disruptive technologies, Schafer argues the real bottleneck is the lack of professionalized training for the program managers actually executing the contracts:
“The Air Force and Space Force spend more than $113.8 billion annually developing next-generation fighters, nuclear weapons, and missile defenses, yet history shows that too often these programs arrive late and over budget… While the Air Force and Space Force are pursuing the right technologies, it is program managers — the equivalent of project managers in industry — who make pivotal decisions that determine whether the force has capability in hand before the shooting starts. And that’s where real disruption can happen, by reconsidering how we prepare, train, and empower the program managers, who are the frontline people responsible for doing it.”
Read Maj. Schafer’s full breakdown on how to fix allied space acquisition at Breaking Defense
Submit an op-ed
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