Canada’s 2026 budget proposes extending its Launch the North initiative to medium-lift rockets, broadening a defense program intended to give the country its own capacity to launch satellites.
The plan follows the government’s Oct. 20 announcement of the budget’s Nov. 5 date. Budget 2026 places the expansion among several priorities covered by up to C$2.7 billion in previously announced funding over five years, starting in fiscal 2026-27. That cash-basis ceiling applies to the group of priorities; the budget assigns no separate amount to medium-lift development.
Canadian firms could compete for support tied to development milestones for rocket vehicles and propulsion technology. The Department of National Defence would manage government launch and testing facilities. National Defence says the broader program is intended to reduce Canada’s reliance on foreign launch providers.
The existing Launch the North challenge has C$105 million in planned multiyear investment, National Defence said in March. Its funding plan lists C$25 million for fiscal 2025-26 and C$40 million for each of the following two fiscal years. Those amounts cover the challenge as a whole, rather than a dedicated medium-lift allocation.
In the first round, NordSpace, Canada Rocket Company and Reaction Dynamics were conditionally approved for C$8.3 million each and invited to Round 2. The government targets an initial light-lift operational capability by 2028. That target does not set a timetable for medium-lift rockets.
National Defence has separately announced agreements for access to two launch sites on Canada’s Atlantic coast. A 10-year, C$20 million agreement covers NordSpace’s Atlantic Spaceport Complex in Newfoundland and Labrador. A separate 10-year, C$200 million lease covers a launch pad operated by Maritime Launch Services near Canso, Nova Scotia. Under that lease, the company must spend at least 90% of the funds it receives in Canada.
Budget 2026 gives no date for an initial medium-lift capability. The program’s stated operational target remains the light-lift capability planned for 2028.
