Canada reaches NATO’s 2% defence spending target
From the Office of the Canadian Prime Minister and the Springboard Content Lab and
Canada has met NATO two percent defence spending NATO’s target two percent of GDP on defence spending. The announcement by Prime Minister Mark Carney signals accelerated investment in military capabilities, defence industries, and advanced technologies—creating new opportunities for research, commercialization, and industry partnerships across Atlantic Canada.
Key Takeaways
- Long-term trajectory: Canada is now positioning toward NATO’s emerging 5% defence investment framework by 2035.
- Historic milestone achieved: Canada hits NATO’s two percent defence spending target for the first time since 1990.
- Accelerated timeline: The target was reached years ahead of schedule, reflecting shifting global security dynamics.
- Major economic opportunity: Defence investments are expected to drive jobs, innovation, and industrial growth across Canada.
- Focus on advanced tech: AI, cyber, quantum, and space technologies are central to new defence investments.

“In moments of crisis, when people see the Maple Leaf on a sleeve, they see hope. They get help. Canada’s new government made a promise to rebuild, rearm, and reinvest in the Canadian Armed Forces – and we’re getting it done. In this more fractured and darker world, Canadian leadership will be defined not just by the strength of our values, but also by the value of our strength. The Canadian Armed Forces are the foundation of the strength on which we are building Canada strong and free.”
The Rt. Hon. Mark Carney, Prime Minister of Canada
What does this mean for Atlantic Canada
Prime Minister Carney has announced more than $3 billion in infrastructure and defence-related investments across Atlantic Canada:
- In Nova Scotia, we are making major, targeted investments to modernise critical infrastructure, build new facilities to support the next generation of naval and air fleets, and expand training and operational capacity. We are investing:
- $1.2 billion to modernise critical power and municipal service infrastructure at CFB Halifax Dockyard and Stadacona – upgrading essential services and facilities to ensure the base has sufficient power and utilities to support new capabilities and future naval operations.
- $648 million to construct two new aviation support facilities at 14 Wing Greenwood – supporting the Royal Canadian Air Force’s CP-8A Poseidon fleet and CQ-9B Guardian with modern hangars, maintenance, and operational infrastructure.
- Over $180 million to build the Combatant Training and Integration Centre – supporting training, operations, and integration for the Royal Canadian Navy’s future river-class destroyers.
- $82.5 million to acquire Halifax Gate – a 475-acre waterfront industrial site that will support current and future Royal Canadian Navy operations, including the movement of personnel, ships, and supplies.
- $60 million for a new, 140-unit apartment complex for Canadian Armed Forces members, near 12 Wing Shearwater – because every member of our Armed Forces deserves a safe, high-quality place to call home.
- In New Brunswick, there is more than $1 billion in the CFB Gagetown Range and Training Area. The government is introducing new ground-based air defence systems and ensuring our soldiers train on infrastructure built to last the next century. It is also investing $20.2 million to upgrade transition centres at CFB Gagetown, improving support for Canadian Armed Forces members as they transition to civilian life.
This $3 billion package builds on Canada’s mission to rebuild, rearm, and reinvest in the Canadian Armed Forces. That strategy rests on four pillars: investing in the foundations of defence – the women and men who serve, and the equipment and the infrastructure they use; expanding and enhancing our military capabilities; strengthening Canada’s defence industry; and diversifying Canada’s defence partnerships.
Turning point in Canada’s defence strategy
Over the next decade, Canada will unleash half a trillion dollars in defence investment – from submarines and aircraft to drones, sensors, and radar systems. In October, we launched the Defence Investment Agency to overhaul and streamline Canada’s defence procurement so the Canadian Armed Forces have the world-class equipment they need. And last month, we announced Canada’s first-ever Defence Industrial Strategy – a bold plan to get our Armed Forces what they need, when they need it; scale Canadian defence companies; and put hundreds of billions of dollars to work in the strategic sectors of our economy.
This milestone reflects a broader shift in global security, where geopolitical instability, Arctic sovereignty, and technological competition are reshaping national priorities. Canada’s strategy focuses on rebuilding, rearming, and reinvesting in the Canadian Armed Forces while strengthening domestic industrial capacity.
New investments include:
- Modern military equipment and infrastructure
- Enhanced recruitment and retention in the armed forces
- Expansion of cyber, AI, and digital defence capabilities
- Increased support for defence-related industries
FAQs
What is NATO’s 2% defence spending target?
It is a guideline for NATO member countries to spend at least 2% of their GDP on defence to ensure collective security and readiness.
Why is Canada reaching this target now?
Rising global tensions, Arctic sovereignty concerns, and evolving threats have accelerated Canada’s defence investments and timeline.
How does this impact universities and colleges?
Post-secondary institutions will play a key role in research, talent development, and innovation—especially in areas like AI, cybersecurity, and ocean technology.
What does this mean for Atlantic Canada businesses?
Companies in sectors like aerospace, ocean tech, and advanced manufacturing will see increased opportunities through procurement, partnerships, and exports.
About Springboard Atlantic
Springboard Atlantic is a network of 19 post-secondary institutions working with industry to drive innovation, commercialization, and real-world problem solving across Atlantic Canada. Our institutions are contributing to defence research and innovation.