On 9 June the Canadian Government announced that it will be rebuilding, rearming, and reinvesting in the Canadian Armed Forces. In announcing the decision, the Prime Minister, Mark Carney, said: “In an increasingly dangerous and divided world, Canada must assert its sovereignty. We will rapidly procure new equipment and technology, build our defence industrial capacity, and meet our NATO defence commitment this year. Canada will seize this opportunity with urgency and determination.”
In a media release the Canadian Government stated,
“Canada will achieve NATO’s 2% (of GDP) target this year – half a decade ahead of schedule – and further accelerate our investments in years to follow, consistent with our security imperatives. The investment for 2025-26 will be over $9 billion. Measures in this plan include:
- Better pay for Canadian Armed Forces, improved recruitment and retention, and investments to support operational readiness, fleet maintenance, security, and infrastructure requirements.
- New aircraft, armed vehicles, and ammunition, as well as support for projects currently underway.
- Developing new drones and sensors to monitor the seafloor and the Arctic.
- Repairing and maintaining existing ships, aircraft, and other assets.
- More health care funding and staff for Armed Forces personnel.
- Expanding the reach, security mandate, and abilities of the Canadian Coast Guard and integrating it into our NATO defence capabilities – to better secure our sovereignty and expand maritime surveillance.
- Bolstering Canada’s defence industrial capacity.
- Building capacity in artificial intelligence, cyber, quantum, and space.
- Modern and secure digital infrastructure.
The plan will support key capabilities, including:
- Arctic Over-the-Horizon Radar,
- Joint Counter-Drone Program,
- Joint Support Ships,
- Long-range precision strike capability,
- Increased domestic ammunition production, and
- Additional logistics utility vehicles, light utility vehicles, and armoured vehicles.
This government will also undertake efforts to support veterans, including modernising the benefits system so veterans get supports sooner, streamlining military trade credentials in the civilian sectors, and improving health services for women veterans.
Canada requires these capabilities to uphold and assert its sovereignty and ensure our defence never becomes dependent on others again. As we strengthen the Canadian Armed Forces, we will also build up Canadian industry, driving innovation and creating good careers for Canadian workers and new opportunities for Canadian businesses. Now more than ever, we need to defend our sovereignty and safeguard Canada’s people and interests.”
Foundational Investments
Specifically, the foundational elements are detailed below.
A Strong Fighting Force
- $2.6 billion CAD (both on a cash basis and on an accrual basis) to empower the military to recruit and retain the personnel needed to carry out its mandate.
- Accelerate recruitment and reinforce retention to bring the CAF to 71,500 Regular and 30,000 Primary Reserve members by 2030 (13,000 Regular and Primary Reserve members are needed). This would include investments in recruitment and retention efforts to ensure that the CAF has the personnel it needs to be ready to respond effectively to threats at home and engage meaningfully abroad.
- Invest in the civilian workforce to enable members of the Defence Team to support operational readiness, fleet maintenance, internal service functions, finance, policy procurement, public affairs, security, accountability, digital, and infrastructure requirements — allowing the CAF to focus on operational requirements.
Repair and Sustain – Equipment and Infrastructure
- $844 million CAD ($767 million on an accrual basis) to repair and sustain CAF capabilities and invest in revitalizing and optimizing key infrastructure.
- Leverage Phase 2 of the National Procurement Program to increase funding for the repair and maintenance of CAF equipment. These additional resources will be allocated to critical fleets such as in land, maritime and aerospace domains.
- Invest in repairing and sustaining existing DND/CAF infrastructure in order to maximize operational readiness and support CAF members. Infrastructure repair and sustainment will ensure that the CAF can continue using existing capabilities and be ready to bring online new capabilities.
Strengthening Digital Foundations
- $560 million CAD ($376 million on an accrual basis) to strengthen DND and the CAF’s digital foundations to ensure that the Defence Team is a relevant and modern workforce in today’s technological era. This funding will enable the Defence Team to be more resilient to cyber threats and leverage data strategically to improve decision-making, while keeping defence information safe and secure. This amount also includes funding for the CSE.
Expanding and Enhancing Existing and Emerging Military Capabilities
- $1 billion CAD ($431 million on an accrual basis) to grow existing and introduce emerging military capabilities that will allow Canada to become increasingly self-sufficient in fulfilling its responsibility to defend its territory and citizens, especially in the Arctic. To do so, DND will move forward with commitments made in ONSAF, with a focus on Canadian suppliers.
Strengthening Canada’s Relationship with the Defence Industry
- $2.1 billion CAD (both on a cash basis and on an accrual basis)to strengthen the Government’s relationship with Canada’s defence industry to lay the groundwork for a comprehensive Defence Industrial Strategy (DIS). These actions focus on immediate needs like reducing obstacles that currently limit industry’s ability to provide critical equipment and support to the CAF. As Canada cannot produce all needed military capabilities independently, the DIS will also strengthen Allied industrial partnerships and leverage joint NATO procurement mechanisms.
Developing Stronger Defence Partnerships
- $2 billion CAD (both on a cash basis and on an accrual basis) to diversify Canada’s defence partnerships beyond the United States (US). Canada will take advantage of both a strategic opportunity and imperative given changes in the global environment. As part of this effort, Canada will continue to leverage partnerships with the US when it is in Canada’s best interest to do so.
Planned spending for 2025-26 also includes $135 million ($20 million on an accrual basis) for defence-related investments of other government departments and agencies.
Source: Canadian Government
