MESSAGES FROM THE HOUSE OF COMMONS — Appropriation Bill No. 4, 2025-26

Honourable senators, when shall this bill be read the second time?

Honourable senators, with leave of the Senate and notwithstanding rule 5-6(1)(f), I move that the bill be read the second time now.

Is leave granted, honourable senators?

Hon. Senators: Agreed.

Honourable senators, I am pleased to rise and introduce Appropriation Act No. 4, 2025-26, which would provide supply for the Supplementary Estimates (C). Through this bill, the government is seeking Parliament’s approval of $5.4 billion in planned voting spending.

It should come as no surprise that we are once again seeing a significant focus on spending by the Department of National Defence. This includes $1.2 billion for the Department of National Defence, including $34.4 million to support Canadian Armed Forces operations in the Middle East; a further $1.2 billion for the Treasury Board Secretariat, of which $1 billion is designated for national defence priorities; $1 billion for the Canada Post Corporation; and $508 million for the Department of Indigenous Services.

This Supplementary Estimates (C) also include additional funding to support the initiatives announced in the budget, including $150 million to modernize the CBC and $127.3 million to strengthen the Canadian Coast Guard’s security role.

Honourable senators, the funding provided for in this bill is intended to help protect Canadians and ensure that they continue to have access to the essential services on which they depend.

As I discuss these Supplementary Estimates (C) here in front of us today, it is worth placing them within the broader financial cycle — in particular for new senators like me who are not experienced at the federal government level — to understand the cadence of how all this money is spent throughout the year.

Each step in that cycle reflects an important responsibility we have in the Senate, which is the authorization of this public spending.

Every year, roughly 130 federal organizations take part in this process. They refine their operational plans and align them with government priorities and mandates.

These individual plans are then brought together by the Treasury Board of Canada Secretariat to produce the Main Estimates, which remain the foundation of Parliament’s scrutiny. The Main Estimates lay out the planned spending for programs and services across the country.

But as honourable senators can appreciate, they are only a snapshot in time. The Main Estimates cannot predict every emerging financial requirement, particularly in the case of fast‑moving issues, emergencies or new government initiatives that arise throughout the year. This has been one of those years.

The federal government must often respond to circumstances that evolve well beyond the early stages of the fiscal planning cycle. This is why we have the supplementary estimates. They provide Parliament with a structured and transparent mechanism to consider adjustments to previously approved spending, whether it’s to address unforeseen pressures or refine allocations as programs mature and conditions change.

The Supplementary Estimates (C) before us represent the final financial update for the current fiscal year that ends this coming week. They help us ensure that departments have the authorities they require while maintaining appropriate oversight and accountability.

With that said, let me turn to some of the major proposed spending items listed in these estimates, beginning with the Department of National Defence. Canada finds itself in an era shaped by significant global uncertainty. The international landscape confronting us today is complex and increasingly unpredictable.

We face technological and military capabilities that transcend borders with unprecedented speed; state and non-state actors who operate with diminishing regard for international rules; and a global order in flux, prompting all nations to reassess long‑standing relationships and strategic orientations. No country knows this better than Canada.

Canada clearly needs to take stronger action to protect itself while continuing to collaborate with its partners around the world.

We know that we have to redouble our efforts to become more self-sufficient and better prepared to protect our country.

These challenges also open the door to important opportunities, opportunities that encourage us to think big and act accordingly.

The government is doing just that by rebuilding, rearming and reinvesting in the Canadian Armed Forces; reaching 2% of GDP spent on defence this fiscal year and setting us on a path to meet NATO’s 5% Defence Investment Pledge by 2035; and strengthening our presence and asserting our sovereignty in the North.

These Supplementary Estimates (C) are a continuation of the government’s significant investments in the Department of National Defence and the Canadian Armed Forces, with proposed spending of $1.2 billion.

Also, $560 million of that over $1-billion total is accessed from the department’s Capital Investment Fund — a fund approved by Parliament in 2019.

The Capital Investment Fund is a fund for large long-term projects, such as constructing facilities, purchasing equipment or upgrading major assets. It is a dedicated source of funds that matches the accrual profile of the Department of National Defence’s existing and planned capital assets.

The Department of National Defence only requests funding on a cash basis that can be reasonably spent in a given fiscal year. Additional funding, when needed, is requested through the supplementary estimates.

This structure matters because major defence equipment and infrastructure often take years to plan, build and maintain. Having a predictable funding profile helps the department manage complex projects, avoid unexpected cost pressures and ensure the money is in place when the assets are needed. It also supports more stable planning across the entire life cycle of these investments.

And let me clarify an important point: When money set aside for major capital projects is not used in a particular year, it does not simply disappear. Under the Capital Investment Fund model, the Department of National Defence can request to move — or reprofile — those funds into future years. They can reallocate funding as necessary toward projects that are ready to advance to the next phase. This allows long-term projects to stay on track even when timelines shift.

Reprofiling gives the Department of National Defence the flexibility to adjust funding to match real project schedules, which helps avoid delays and keeps major investments properly supported.

The Department of National Defence is also requesting close to $314 million for the Strategic Tanker Transport Capability Aircraft project.

This project provides for a fleet of aircraft to replace the CC-150 Polaris.

Canada is acquiring nine CC-330 Husky aircraft. I wanted to bring a photo, but I understand it is a prop. These aircraft will handle several important tasks, such as air-to-air refuelling, transporting military personnel and equipment, conducting medical evacuations and transporting Government of Canada officials when needed.

This fleet will give the Royal Canadian Air Force greater operational flexibility, faster response times, improved communication security and improved aircraft protection systems. It will also make it easier for Canada to operate alongside its allies, which is vital when tackling these modern threats.

Let me now turn to the Treasury Board of Canada Secretariat, or TBS.

Honourable senators, in these Supplementary Estimates (C), the Treasury Board Secretariat is seeking Parliament’s approval to include the new “Vote 50” having to do with defence and security initiatives, in the amount of $1 billion.

This additional funding will give organizations the flexibility to address unforeseen expenses related to national defence or national security.

It will also support the government’s efforts to meet its commitment to NATO to allocate 3.5% of GDP to core defence needs.

Another item that I found to be of interest, and perhaps is of interest to you, is what the CBC would do with $150 million. They plan expanding journalistic presence around the world, increasing local news budgets, investing in Northern Canada, improving the user experience of the CBC/Radio-Canada platform and developing new content to showcase regional realities.

If you follow line by line in the Supplementary Estimates (C), you see a proposed transfer of funds from the Jacques Cartier and Champlain bridges in Quebec of over $3.7 million to Fisheries and Oceans Canada, the National Research Council Canada and VIA Rail. It is for the Federal Contaminated Sites Action Plan, so it’s good to know that cleanup continues.

The Treasury Board is also seeking parliamentary approval to increase its Vote 30 — Paylist Requirements by $140 million. This increase would provide funding to support mandatory payments, such as parental and maternity allowances, and other adjustments that have not been provided by Vote 15 — Compensation Adjustments.

The TBS will also be seeking parliamentary approval to increase its Vote 15 — Compensation Adjustments by $31.2 million. This increase would cover pay increases and lump-sum payments from recently signed collective agreements and updated terms of employment for the Ship Repair (West) and Air Traffic Control groups.

Finally, for TBS, the Supplementary Estimates (C) include $371 million for professional services. I know this, too, is of particular interest to people in this chamber. Contracted services have always been an important part of how the government delivers its services to Canadians, and demand for different types of services can vary significantly from year to year.

For instance, there has been recent growth across the government in engineering and architectural services related to defence, health and welfare services related to immigration. But there have also been reductions. For example, spending on management consulting services decreased by 46% from nearly $900 million in 2024 to less than $450 million in 2025.

Lastly, it is important to clarify that these Supplementary Estimates (C) do not reflect the implementation of the government’s Comprehensive Expenditure Review, or CER, which is being led by the Treasury Board Secretariat. The reductions as part of that review will begin in the 2026-27 fiscal year and will be reflected in the Main Estimates and Departmental Plans that our colleague deposited today in the chamber.

Honourable senators, the last federal organizations I would like to briefly talk about are Canada Post and the Department of Indigenous Services.

As Canada Post continues to go through a period of significant transition, the Crown corporation is seeking $1 billion to address revenue shortfalls and support continued operations.

The Department of Indigenous Services is requesting $508 million to fund critical programs like the First Nations Child and Family Services Program. This program provides culturally appropriate prevention and protection services to First Nations children, youth and families living on reserve or in the Yukon. It focuses on early intervention to keep children safe, help families stay together and preserve essential cultural and linguistic ties.

Honourable senators, I would like to close with a few words about transparency. The estimates give parliamentarians and Canadians a clear view of how public money is being spent. The government strongly believes that people — and those of us in Parliament — should be able to examine these plans closely.

I encourage us all to make full use of the detailed — it’s good sleeping material if nothing else — information available in the estimates, which can also be found online at Canada.ca.

There is also the GC InfoBase, which provides a clear and accessible view of government spending. It offers visual insights into complex financial data to promote transparency and understanding.

I understand that when Canada joins fellow member countries of the Organisation for Economic Co-operation and Development, or OECD, it sees that we are often used as the gold standard in the transparency of our financial documents — very good for us to hear.

Your Honour, the bill before us today demonstrates how the government plans to invest public resources to meet the challenges and opportunities that are before us and address the priorities that matter most to Canadians. The government remains committed to providing Canadians with the critical services they need.

This appropriation bill gives important insight into how public funds would be used. It also shows that the government is responding to immediate needs whilst continuing to make long‑term investments that benefit all Canadians.

Senators, I look forward to further debate on what is such a vital piece of legislation, one that lets the government do its job. Thank you.

Yes.

It’s unclear if by March 31 that 2% target will be reached. When we see what is tabled next — which is Bill C-24, with the interim supply, which gives the layout for all of the expenses coming up next year — I think it’s clear that the government is moving towards that goal of meeting its NATO target, in fact, that larger target for 2035, which I think is critical.

So I do believe that we’re moving that way, but I will see whether or not that amount actually meets 2% by March 31.