Canada Continues to Invest in Defence to Strengthen National Security
April 1, 2026
VAC Minister McKnight visits CFB Esquimalt, highlights NATO 2% targeted spending
Canada continues to face a rapidly evolving global security environment, requiring sustained and strategic investment to strengthen national defence, protect Canadians, assert sovereignty, and support Allies and partners.
Over the last year, the Government of Canada has moved at unprecedented speed and scale to deliver on its plan to rebuild, rearm and reinvest in the Canadian Armed Forces. As a result, Canada has delivered on a core objective of its plan – achieving the NATO 2% defence spending target this year, half a decade ahead of schedule. Beyond enhancing military readiness, Canada’s historic defence investment is generating significant economic benefits — driving innovation, growing the defence industrial base, and creating long-term prosperity for Canadians.
On April 1, 2026, the Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence, announced spending for the Esquimalt jetty project and military housing:
- $1.1 billion will be invested to replace the aging A and B jetties in Esquimalt, British Columbia, supporting Royal Canadian Navy operations and future fleet requirements.
- The Esquimalt jetty project is expected to support approximately 1,280 jobs during construction and will deliver modern, seismically resilient infrastructure on the Pacific Coast.
- There will be expanded access to military housing, including 7,500 new units built at 25 locations across Canada, including Esquimalt and Comox, British Columbia, and the launch of the second phase of a national housing construction program valued at over $3.7 billion.
Meeting 2% is not an end point – it is the beginning of a sustained, whole-of-government effort to rebuild the Canadian Armed Forces, restore operational readiness, and deliver the warfighting capabilities required to deter threats, defend Canada, and contribute to the defence of North America and international security. Over the next decade, Canada will deliver half a trillion dollars in defence investment, putting the country on a clear path toward meeting the new NATO Defence Investment Pledge of 5% of GDP by 2035. This sustained investment will also generate significant economic benefits for Canadians — driving innovation, growing the domestic defence industrial base.
The Government of Canada will advance this long‑term investment plan to strengthen defence and security, supporting a Defence Team that remains prepared, resilient, and reliable in an increasingly complex world.
Quotes
“This investment ensures the Canadian Armed Forces have the modern infrastructure and capabilities required to operate effectively in today’s security environment. It strengthens readiness, supports our members and their families, and delivers real economic benefits through job creation and partnerships with Canadian industry. It is a clear demonstration of Canada’s commitment to contribute to NATO and to safeguard our country and our interests at home and abroad.”
The Honourable David J. McGuinty, Minister of National Defence
“Meeting NATO’s 2% target is about more than defense spending, it’s about investing in the people who defend Canada. Our government is committed to standing with all those who have worn the uniform and that includes our Veterans, and the active service members who continue to serve today.”
The Honourable Jill McKnight, Minister of Veterans Affairs and Associate Minister of National Defence
Quick facts
- Approximately $63 billion in 2025–26 was spent on defence across the Department of National Defence, the Canadian Armed Forces, the Canadian Coast Guard, and other government departments. These investments deliver tangible progress across personnel, infrastructure, equipment, and operational priorities.
- Increasing investments in core military capabilities, building up Canadian industry, and dual-use investments are putting Canada on a pathway to meet the new North Atlantic Treaty Organization Defence Investment Pledge to invest five percent of gross domestic product by 2035.
- The Canadian defence industry contributes nearly $10 billion to the gross domestic product and supports over 81,000 jobs.
- Veterans Affairs Canada is the second largest contributor to Canada’s NATO spending, at $7.8 billion for 2025-2026. Over 90% of the Department’s budget represents benefits or services provided to Veterans, their families and Veteran-serving organizations.
- Budget 2025 provides funding that will further allow Veterans Affairs Canada to support our NATO contributions: $184.9 million over four years starting in fiscal year 2026-2027 and $40.1 million ongoing.
- These funds will stabilize processing capacity for disability benefits applications and modernize the operational processes and IT infrastructure supporting this program.
