US EditionHere’s how Canada hit its NATO defence spending target
Canada allocated $63.4 billion to defence in 2025, marking its first time meeting the NATO 2% GDP spending target amid major investments across recruitment, infrastructure, and equipment.
- Canada spent $63.4 billion on national defence in 2025, meeting NATO's two percent of GDP spending target for the first time, according to the alliance's annual report released Thursday.
- To reach this threshold, the government added $9 billion to the fiscal framework in summer 2025, directing funds to recruitment and retention , infrastructure , and Canadian Armed Forces salary hikes up to 20 per cent.
- Recent allocations include $1.4 billion for domestic munitions production, $753 million for Bombardier VIP jets, $356 million for a Quebec nitrocellulose facility, $307 million for Colt Canada rifles, and $200 million for a Nova Scotia space launch pad.
- Defence Minister David McGuinty acknowledged rapid spending has made contract details scarce, with current figures remaining estimates until final accounts are published this fall.
- Prime Minister Mark Carney has committed to a five percent of GDP defence target by 2035, though only 3.5 per cent will fund core needs, with 1.5 per cent covering security-adjacent infrastructure.
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Here is a roundup of stories from The Canadian Press designed to bring you up to speed … Canada met two per cent spending pledge: NATO For the first time since the end of the Cold War, Canada is spending roughly two per cent of its GDP on natio
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The Hamilton SpectatorHere’s how Canada hit its NATO defence spending target
OTTAWA - Canada spent $63.4 billion on national defence in 2025, meeting its NATO commitment to spend two per cent of GDP on defence for the first time, the alliance's
Canada reaches NATO defence spending target ahead of schedule, outlines next steps
The federal government says Canada has reached NATO’s two per cent defence spending target, marking a significant increase in military investment ahead of previous timelines. According to the government, the target was achieved through more than $63 billion in new defence spending over the past year, representing one of the largest increases in decades. Officials say the funding was coordinated across multiple federal departments and agencies as…
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