Question Period Note: Rebuilding, rearming, reinvesting in the Canadian Armed Forces

About

Reference number:
DND-2026-QP-00001
Date received:
Sep 5, 2025
Organization:
National Defence
Name of Minister:
McGuinty, David (Hon.)
Title of Minister:
Minister of National Defence

Issue/Question:

How is this Government strengthening the ability of National Defence and the Canadian Armed Forces to defend and deter against threats to Canada?

Suggested Response:

  • The Government of Canada is committed to rebuilding, rearming, and reinvesting in the Canadian Armed Forces.
  • Over the last few months, we have taken concrete steps to fulfill this commitment.
  • In June, the Government announced additional needed investments of over $9 billion in Defence.
  • This will also set us on the path to achieve the NATO 2% spending target this fiscal year.
  • Since then, we have improved compensation and benefits for Canadian Armed Forces members.
  • This includes a significant pay raise retroactive to April 2025, that will provide a 20% increase in starting pay to the members that need it the most.
  • We have also invested in infrastructure, to upgrade port facilities in Halifax and Esquimalt and to renovate ammunition depots across the country.
  • In addition, National Defence is working to strengthen and diversify its international and industry partnerships.
  • For example, we have allocated $2 billion to Ukraine for urgently required military equipment and supplies, as well as for investments in joint ventures between Ukrainian and Canadian industry.
  • We will continue to invest in defending Canadians, securing our sovereignty, and enhancing our partnerships in the face of an increasingly dangerous and divided world.

Background:

Estimates 2025-26

  • In Main Estimates 2025-26, National Defence was allocated $35.7 billion, an increase of $5.1 billion (or 16.6%) over last year’s Main Estimates
  • In Supplementary Estimates (A) 2025-26, a further $8.7 billion was obtained to bring the National Defence annual budget to $44.3 billion.

Supplementary Estimates (A)

Item Summary
Funding for recruitment, retention and support programs for the Canadian Armed Forces
$2.1 billion
• This funding will allow National Defence to accelerate the recruitment of new members for both the regular and reserve forces, augment its capacity to provide basic and occupational training, reinforce retention of existing members, and improve health services for members.
Funding for defence research and development and support for the Canadian defence industry
$2.1 billion
• This funding will help reduce obstacles that currently limit Canadian industry’s ability to provide critical equipment and support to the CAF, focusing on immediate needs as well as initiatives that can be advanced quickly.
• National Defence is also working on a Defence Industrial Strategy.
Funding for military aid to Ukraine and to expand defence partnerships
$2.0 billion
• Canada will continue to support the Armed Forces of Ukraine in its fight against Russia’s invasion.
• Aid will support the acquisition of drones, armoured combat support vehicles, pilot training, ammunition, small arms, vehicles, and other equipment.
• This funding will also be used to expand cooperation with international partners related to military training, defence policy, and intelligence.
Funding to support strategic military capabilities
$1.0 billion
• This funding will help grow existing and introduce emerging military capabilities, especially in the Arctic. Supported projects and initiatives include the Joint Support Ships, an undersea monitoring and surveillance system, Arctic over-the-horizon radar, long-range artillery, domestic ammunition production, and additional logistics and light utility vehicles.
Funding for new and existing Canadian Armed Forces equipment and infrastructure
$833.7 million
• This funding is for a range of procurements, including defence equipment, personal gear, technology, infrastructure maintenance, and essential services.
• This funding will also support modernization of range and training infrastructure, expansion of ammunition infrastructure, as well as preventative and corrective maintenance, repairs, upgrades and minor construction on the Defence Real Property Portfolio.
Funding for digital tools and capabilities (horizontal initiative)
$550.2 million ($180.2 million to National Defence and $370 million to the Communications Security Establishment)
• This funding will bolster Canada’s cyber capabilities, support greater interoperability with Allies and partners, better equip Canada to counter the full spectrum of cyber threats, and enhance network infrastructure, information management, connectivity and data storage.

Responsible Principals: Assistant Deputy Minister (Policy), Assistant Deputy Minister (Finance)

Additional Information:

Quick facts

  • On June 9, 2025, the Prime Minister and Minister of National Defence announced Canada’s plan to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF). The investment for 2025-26 will be over $9 billion and focused on six broad categories, as reflected in Supplementary Estimates (A):
  • Recruitment, retention and support programs for the CAF ($2.1 billion);
  • Defence research and development and support for the Canadian defence industry ($2 billion);
  • Military aid to Ukraine and to expand defence partnerships ($2 billion);
  • Support for strategic military capabilities ($1 billion);
  • New and existing CAF equipment and infrastructure ($834 million); and
  • Digital tools and capabilities ($180 million)
  • While the majority of the investment will be allocated to National Defence, some funding will be allocated to partner departments and agencies, most notably $370 million for the Communications Security Establishment.