Canada officially reaches NATO’s 2% target and unveils major defence investments in Atlantic Canada

By Tahani Elghazaly
Published March 27, 2026

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Canada has officially reached NATO’s 2 per cent of GDP defence spending benchmark in the 2025-26 fiscal year, marking what Ottawa describes as a major milestone in the country’s defence and collective security posture. National Defence says Canada is now investing more than C$63 billion across the Department of National Defence, the Canadian Armed Forces, and other government partners.

The government says more than C$14 billion of that total comes from other federal departments and agencies involved in areas such as cybersecurity, space, procurement, and support for veterans. The message from Ottawa is that the 2 per cent benchmark is no longer being framed as military spending alone, but as part of a broader whole-of-government security buildout.

Alongside the announcement, Prime Minister Mark Carney unveiled a package worth more than C$3 billion for defence and military infrastructure projects in Atlantic Canada. The package includes C$1.2 billion for key infrastructure upgrades at Halifax Dockyard and Stadacona, C$648 million for two new aviation support facilities at 14 Wing Greenwood, more than C$1 billion for the CFB Gagetown range and training area in New Brunswick, and C$20.2 million to upgrade transition centres for service members moving into civilian life.