Officials said Canada had previously underinvested in defence, with spending falling to 1% of GDP by 2014, below NATO expectations. The government has since moved to increase funding and modernise the Canadian Armed Forces.
Within six weeks of taking office, the new government launched a plan to rebuild and expand defence capacity. Over the past 10 months, it has worked across multiple departments to allocate more than $63 billion, marking the largest annual increase in defence spending in generations.
Canada has now reached the NATO target of 2% of GDP on defence spending, ahead of the previous timeline. Officials said this milestone forms the basis for further increases towards a new target of 3.5% on core defence spending and an additional 1.5% on related investments by 2035.
Prime Minister Mark Carney announced more than $3 billion in infrastructure and defence-related investments across Atlantic Canada. The funding includes projects in Nova Scotia and New Brunswick aimed at modernising facilities and expanding operational capacity.
Investments in Nova Scotia include upgrades to infrastructure at CFB Halifax Dockyard and Stadacona, as well as new aviation facilities at 14 Wing Greenwood. Additional funding will support training infrastructure, naval operations, and housing for service members.
In New Brunswick, more than $1 billion will be invested in the CFB Gagetown Range and Training Area. Further funding will improve transition centres supporting personnel moving to civilian life.
“In moments of crisis, when people see the Maple Leaf on a sleeve, they see hope. They get help. Canada’s new government made a promise to rebuild, rearm, and reinvest in the Canadian Armed Forces – and we’re getting it done. In this more fractured and darker world, Canadian leadership will be defined not just by the strength of our values, but also by the value of our strength. The Canadian Armed Forces are the foundation of the strength on which we are building Canada strong and free,” Carney said.
Defence Minister David J. McGuinty said reaching the 2% target marks a significant step in strengthening national security. “Reaching the 2% benchmark is a foundational step in renewing Canada’s defence and a clear statement of resolve in a more dangerous world.”
“Over the past year, we have made sustained investments in our people, our readiness, and the capabilities the Canadian Armed Forces need to defend this country. These efforts are strengthening Canada at its core – protecting our sovereignty, securing our continent, and reinforcing our role among Allies. At its heart, this is about trust: that Canadians can rely on their country to be ready, resilient, and prepared for what lies ahead,” he added.
Justice Minister Sean Fraser highlighted the regional impact of the investments. “Atlantic Canada has always punched above its weight when it comes to defending Canada, at home and abroad.”
“For the first time since the Cold War, Canada is making the kind of investment our military needs. Here in Nova Scotia, that means good jobs, growing industries, and a defence sector that continues to lead. I’m proud of the men and women who serve, and of the communities here that stand behind them,” he said.
Secretary of State Stephen Fuhr said the spending would support long-term capability development. “Canada achieving the 2% commitment half a decade ahead of schedule lays the groundwork for a stronger and more prepared Canadian Armed Forces.”
“The Defence Investment Agency will play an increasingly important role in streamlining procurement and growing our defence industrial base to deliver equipment faster to those who serve. Our generational investments in defence will reinforce Canada’s ability to protect our sovereignty, support our Allies, and respond decisively to a rapidly evolving global security environment,” he added.
Officials said the broader strategy includes long-term investment plans totalling hundreds of billions of dollars over the next decade. The government aims to strengthen military capability, support the domestic defence industry, and expand international partnerships.
