March 26, 2026
Halifax, Nova Scotia
In an increasingly dangerous and divided world, Canada must be prepared – to defend ourselves and our values, to secure our sovereignty, and to stand with our Allies. For too long, Canada did not sufficiently build that strength. By 2014, Canada’s defence spending had fallen to just 1% of our GDP, half of our obligations as a NATO member.
The world has changed, and Canada must change with it. That is why, six weeks after the election, Canada’s new government released an ambitious plan to rebuild, rearm, and reinvest in the Canadian Armed Forces. A core objective is to achieve the NATO 2% defence spending target this year. For the past 10 months, we have moved at unprecedented speed and scale – working across over a dozen federal departments and agencies to spend more than $63 billion, the largest year-over-year increase to Canada’s defence spending in generations.
As a result of that work, Canada has achieved the 2% defence expenditure target – half a decade ahead of the previous government’s schedule. The 2% target is a foundation for an even stronger, more independent, more secure country.
As we accelerate our path to NATO’s new target of 3.5% on core defence spending and an additional 1.5% of GDP on defence and security-related investments by 2035, Prime Minister Carney announced today more than $3 billion in infrastructure and defence-related investments across Atlantic Canada:
- In Nova Scotia, we are making major, targeted investments to modernise critical infrastructure, build new facilities to support the next generation of naval and air fleets, and expand training and operational capacity. We are investing:
- $1.2 billion to modernise critical power and municipal service infrastructure at CFB Halifax Dockyard and Stadacona – upgrading essential services and facilities to ensure the base has sufficient power and utilities to support new capabilities and future naval operations.
- $648 million to construct two new aviation support facilities at 14 Wing Greenwood – supporting the Royal Canadian Air Force’s CP-8A Poseidon fleet and CQ-9B Guardian with modern hangars, maintenance, and operational infrastructure.
- Over $180 million to build the Combatant Training and Integration Centre – supporting training, operations, and integration for the Royal Canadian Navy’s future river-class destroyers.
- $82.5 million to acquire Halifax Gate – a 475-acre waterfront industrial site that will support current and future Royal Canadian Navy operations, including the movement of personnel, ships, and supplies.
- $60 million for a new, 140-unit apartment complex for Canadian Armed Forces members, near 12 Wing Shearwater – because every member of our Armed Forces deserves a safe, high-quality place to call home.
- In New Brunswick, we are investing more than $1 billion in the CFB Gagetown Range and Training Area – introducing new ground-based air defence systems and ensuring our soldiers train on infrastructure built to last the next century. We are also investing $20.2 million to upgrade transition centres at CFB Gagetown, improving support for Canadian Armed Forces members as they transition to civilian life.
This $3 billion package further builds on Canada’s mission to rebuild, rearm, and reinvest in the Canadian Armed Forces. That strategy rests on four pillars: investing in the foundations of defence – the women and men who serve, and the equipment and the infrastructure they use; expanding and enhancing our military capabilities; strengthening Canada’s defence industry; and diversifying Canada’s defence partnerships.
Over the next decade, Canada will unleash half a trillion dollars in defence investment – from submarines and aircraft to drones, sensors, and radar systems. In October, we launched the Defence Investment Agency to overhaul and streamline Canada’s defence procurement so the Canadian Armed Forces have the world-class equipment they need. And last month, we announced Canada’s first-ever Defence Industrial Strategy – a bold plan to get our Armed Forces what they need, when they need it; scale Canadian defence companies; and put hundreds of billions of dollars to work in the strategic sectors of our economy.
Canada’s new government is delivering on its promise – to make generational investments in the women and men of the Canadian Armed Forces and to further accelerate these investments in the years to come. In a more dangerous and divided world, Canada is taking full responsibility for defending our sovereignty and building our strength as a reliable partner and Ally.
Quotes
“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.”
— The Rt. Hon. Mark Carney, Prime Minister of Canada
“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.”
— The Hon. David J. McGuinty, Minister of National Defence
“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.”
— The Hon. Sean Fraser, Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency
“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.”
— The Hon. Stephen Fuhr, Secretary of State (Defence Procurement)
Quick facts
- At the 2025 NATO Summit in The Hague, Canada and our NATO Allies agreed to a new Defence Investment Pledge of investing 5% of annual GDP by 2035 to ensure our individual and collective security. As part of this pledge, Canada will invest 3.5% of GDP in defence spending and 1.5% of GDP in critical defence and security-related investments.
- Canada officially joined the European Union’s Security Action for Europe (SAFE) initiative at the Munich Security Conference in February 2026. SAFE is a key pillar of the EU’s Readiness 2030 plan, and Canada’s participation in SAFE will enhance defence readiness on both sides of the Atlantic.
- Canada continues to work to establish the Defence, Security and Resilience Bank (DSRB) – a new, multilateral financial institution that will bring together likeminded partners to mobilise and deploy private capital and support collective security. The DSRB will provide long-term, low-cost financing for defence, security, and resilience initiatives across supply chains, helping to address critical financing gaps, with benefits for member governments and defence firms, including small and medium-sized enterprises.
- Canada’s defence sector is an important contributor to the economy with close to 600 firms directly accounting for 36,000 jobs in 2022, supporting a total of 61,200 jobs across the defence value chain. These companies generated $14.3 billion in revenues that same year and contributed $7.4 billion to GDP across the defence value chain.
- Atlantic Canada plays a critical role in advancing Canada’s economic and national security – home to nearly 10,000 direct aerospace and defence jobs, representing 20% of Canada’s defence industry employment.
- The Defence Investment Agency is modernising Canada’s defence procurement by centralising expertise, cutting red tape, and streamlining decisions – supporting the implementation of Canada’s Defence Industrial Strategy and helping accelerate defence investments.
