Canada Reaches NATO 2% Defence Spending Target
NATO 2% defence spending target achieved as Canada boosts military investment
HALIFAX, NOVA SCOTIA — Canada has reached NATO’s benchmark of spending 2 per cent of GDP on defence, Prime Minister Mark Carney announced Thursday, marking a significant shift in the country’s military and security posture.
The milestone comes months after the federal government launched a plan to rebuild and modernize the Canadian Armed Forces, following years of defence spending below NATO expectations.
Canada Hits NATO Benchmark Ahead of Schedule
According to the federal government, Canada achieved the 2 per cent defence spending target years ahead of the previous timeline, following more than $63 billion in new defence expenditures over the past 10 months.
The Prime Minister described the achievement as a foundational step toward strengthening national security and fulfilling Canada’s commitments to NATO allies.
“In moments of crisis, when people see the Maple Leaf on a sleeve, they see hope. They get help,” Carney said, emphasizing the importance of investing in Canada’s military capabilities.
LIVE: Canada meets 2% NATO target • EN DIRECT : Le Canada atteint l’objectif de 2 % de l’OTAN https://t.co/4vL6UjOIkA
— Mark Carney (@MarkJCarney) March 26, 2026
Major Investments in Atlantic Canada
Alongside the announcement, the federal government unveiled more than $3 billion in defence and infrastructure investments across Atlantic Canada.
In Nova Scotia, funding will support upgrades to naval and air force facilities, including:
- $1.2 billion to modernize infrastructure at Canadian Forces Base Halifax
- $648 million for new aviation facilities at 14 Wing Greenwood
- Over $180 million for a new naval training and integration centre
- $82.5 million to acquire a major waterfront site to support naval operations
- $60 million for new housing for Canadian Armed Forces members
In New Brunswick, more than $1 billion will be invested in upgrades to Canadian Forces Base Gagetown, including new air defence systems and modernized training infrastructure.
A Broader Defence Strategy
The spending increase is part of a wider effort to rebuild Canada’s defence capacity, including long-term plans to invest up to 5 per cent of GDP in defence and related security spending by 2035.
The government has also introduced new initiatives such as the Defence Investment Agency and Canada’s first Defence Industrial Strategy, aimed at modernizing procurement and strengthening domestic defence industries.
Defence Minister David McGuinty said reaching the 2 per cent target signals Canada’s commitment to readiness and reliability among allies.
Strengthening Canada’s Global Role
Officials say the increased spending will support Canada’s ability to defend its sovereignty, particularly in the Arctic, while enhancing its contributions to NATO and international security missions.
The investments are also expected to generate economic benefits, including job creation and growth in Canada’s defence and aerospace sectors.
Atlantic Canada, in particular, is positioned to benefit, with nearly 10,000 defence-related jobs already supporting the regional economy.
Looking Ahead
The government says achieving the NATO benchmark is only the beginning, with further investments planned to expand Canada’s military capabilities and strengthen partnerships with allies.
As global tensions continue to rise, Ottawa is positioning Canada as a more active and capable contributor to international security.
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