The Canadian federal government has officially allocated funding for the development of medium-lift rocket capabilities under the Launch the North initiative. This program aims to support sovereign launch operations from at least two new spaceports located on the country's east coast.

The five-year spending plan, which is part of a CAD 142 billion federal budget, includes provisions for a domestic rocket-propulsion ecosystem and launch testing supported by the Department of National Defence. While the timeline for medium-lift upgrades remains unspecified, smaller rockets are expected to launch by 2028.

Canada’s Defence Industrial Strategy identifies launch as a top priority. Local companies, including Canada Rocket Company, NordSpace, and Reaction Dynamics, are developing prototypes to address a projected market gap in medium-lift capacity following the eventual retirement of the SpaceX Falcon 9.

Beyond launch infrastructure, the budget highlights space surveillance initiatives in British Columbia and monitors global trends regarding orbital security. These investments reflect a strategic shift as Canada seeks to revitalize its domestic launch industry after decades of focusing on robotics and space medicine.