Canada is ramping up its defence investments, committing over $9 billion ($8.3 billion on an accrual basis) for 2025-26, raising defence spending to 2% of GDP.

The recent announcement by Prime Minister Mark Carney and Minister of National Defence David McGuinty builds on the Our North, Strong and Free (ONSAF) policy to enhance Canada’s sovereignty, security, prosperity and drive economic growth.

Key investments include:

  • Recruitment & Retention: $2.6 billion to expand the Canadian Armed Forces (CAF) to 71,500 Regular and 30,000 Reserve members by 2030. Invest in the civilian workforce to enhance the Defence Team’s ability to support operations, fleet maintenance, internal services, finance, procurement, public affairs, security, digital systems, and infrastructure—ensuring the CAF can focus on mission readiness.
  • Equipment & Infrastructure: $844 million to maintain CAF capabilities and modernize key infrastructure. Increase funding through Phase 2 of the National Procurement Program to support critical land, maritime and aerospace fleets. Repair and sustain existing DND/CAF facilities to enhance operational readiness and ensure effective deployment of both current and future capabilities
  • Digital Security: $560 million to modernize cybersecurity and data systems, including funds for the Communications Security Establishment (CSE).
  • Military Capabilities: $1 billion to enhance defence capabilities, especially in the Arctic. DND will move forward with commitments to focus on Canadian suppliers
  • Defence Industry Relations: $2.1 billion to fortify ties with Canada’s defence industry and establish a comprehensive Defence Industrial Strategy (DIS). Address immediate challenges limiting the industry’s ability to supply critical equipment and support the CAF. Strengthen global defence ties, enhance industrial cooperation, and utilize NATO joint procurement mechanisms to ensure Canada meets its military capability needs. This investment will streamline supply chains and bolster defence readiness
  • International Partnerships: $2 billion to broaden Canada’s defence partnerships beyond the U.S., responding to global shifts that present both strategic opportunities and necessities. While expanding alliances, Canada will continue to engage with the U.S. when it serves national interests
  • Other Defence Investments: $135 million will be allocated to the 2025-26 budget for defence-related initiatives across various government departments and agencies