Overview

• Canada’s defence budget for 2025–26 will increase by $9.3 billion, pushing total military and security spending to $62.7 billion, equivalent to 2% of GDP.
• New acquisitions will include submarines, fighter jets, ships, armoured vehicles, artillery, drones and Arctic surveillance sensors to modernize Canada’s ageing forces.
• Ottawa plans a stand-alone defence procurement agency to streamline equipment purchases and will raise pay for Canadian Armed Forces personnel to bolster recruitment and retention.
• The government intends to reduce reliance on US suppliers by deepening defence partnerships with Europe and reassessing planned F-35 fighter jet purchases.
• At the June 24–25 NATO leaders summit, allies are expected to consider raising the alliance’s spending target to 3.5% of GDP for core capabilities plus 1.5% for broader security investments.