Expanding Canada’s Defence ITB Regime to Support Veterans

Canada’s Industrial and Technological Benefits (ITB) policy has, for decades, anchored defence procurement to domestic industrial development. By requiring companies winning defence contracts to reinvest in Canadian innovation and supply chains, the ITB framework has ensured that public investments in national defence generate long-term economic returns.

But as Canada enters a new policy era—defined by Prime Minister Mark Carney’s twin priorities of strengthening defence spending and addressing the housing crisis—the ITB program is due for a strategic expansion. The next frontier of industrial benefits should include direct partnerships with veteran-serving organizations, ensuring that defence investments contribute not only to industrial growth, but also to the social reintegration of those who once wore the uniform.

The Policy Context: Defence and Housing as National Priorities

‍Prime Minister Carney has made clear that Canada’s global credibility depends on meeting NATO’s defence spending targets and revitalizing national security capacity. At the same time, his government has committed to tackling housing affordability and veteran homelessness. These are not disconnected priorities. The capacity to defend Canada rests not only on platforms and procurement, but also on the well-being of the people who served.

Earlier this week in Kingston, Ontario, the Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence, underscored this connection by highlighting new federal investments in veteran housing through the Kingston Veterans’ Village.

This convergence of defence and social priorities presents an opportunity for policy innovation—one that would align procurement obligations with national commitments to veterans.

Homes for Heroes: A Case Study in Deliverable Outcomes

‍The Homes for Heroes Foundation, led by National Director Kim Shippey, has pioneered a Veterans’ Village model that addresses homelessness by providing stable housing and wrap-around services.

During my recent visit to their Kingston site, alongside Samuel Group’s Director of Operations and Government Relations Jonas LeBlanc-Wilmink and AWS Canada’s Defence Industry Lead, Dan McKinney (himself a veteran), it became evident that Homes for Heroes offers more than charity—it offers a scalable, results-driven model for reintegration.

For defence contractors seeking meaningful ITB projects, this type of initiative represents a clear, measurable, and impactful deliverable.

‍Why Expand ITBs to Veterans’ Organizations?

‍Expanding ITB eligibility to include contributions to veteran housing, employment, and social reintegration would achieve three objectives:

        1. Policy Alignment

Defence procurement would directly reflect government priorities by addressing housing and supporting veterans—two pillars of the Prime Minister’s agenda.

        2. Measurable Outcomes

Unlike diffuse corporate social responsibility programs, veteran-focused initiatives produce quantifiable results: homes built, veterans housed, lives stabilized.

        3. Strengthened National Security Culture

Supporting veterans strengthens Canada’s social contract with its armed forces, reinforcing the legitimacy of increased defence spending in the eyes of Canadians.

Policy Pathways and Recommendations

‍The Government of Canada, through Innovation, Science and Economic Development (ISED) and the Department of National Defence (DND), should:

• Amend ITB Guidelines to explicitly recognize veteran-focused initiatives—such as housing, employment training, and mental health services—as eligible obligations under major defence contracts.
• Pilot Programs with existing contracts, testing the integration of veteran support as a component of ITB reporting.
• Encourage Industry Collaboration by convening a working group of defence companies, veterans’ organizations, and policymakers to design scalable models for ITB-eligible contributions.

Such measures would not dilute the industrial focus of ITBs but rather expand their scope to reflect today’s policy imperatives.

A Strategic Imperative

‍‍As Canada increases defence spending and renews its commitments to NATO, the ITB program will remain a powerful tool to maximize public returns. However, in an era where social resilience is as critical as military readiness, industrial benefits must extend beyond factories and supply chains.

By formally integrating veteran support into the ITB framework, Canada can ensure that every defence contract contributes to both national security capacity and the social reintegration of those who defended it.

The Homes for Heroes model demonstrates that such outcomes are possible, measurable, and deeply aligned with public priorities. It is time to make them part of Canada’s industrial benefits strategy.