A significant shift is underway for Canada’s military, facing years of underfunding and dwindling readiness. A new financial commitment of $81.8 billion over five years aims to reverse this trend, signaling a determined effort to rebuild and re-equip the Canadian Armed Forces.
A substantial portion, $20.4 billion, is directly allocated to the people who serve. This includes vital investments in recruitment initiatives, substantial pay increases to address generational inequities, and enhanced healthcare support for all CAF members.
Operation REASSURANCE, a critical deployment launched in response to Russia’s initial actions in Ukraine, will continue for another three years with $2.7 billion in funding. Currently, 2,000 Canadian troops are actively defending NATO allies, while simultaneously leading a multinational force of 3,000 personnel in Latvia, bolstering the alliance’s eastern defenses.
Beyond Europe, Canada’s commitment to global security extends to the Middle East through Operation AMARA. The budget allocates $300.1 million over three years to support ongoing operations and maintain a strategic presence in Iraq, Jordan, and Lebanon, alongside a robust multinational maritime force.
Recent recruitment efforts have shown promise, exceeding targets with 6,706 new members joining the CAF in the 2024/25 fiscal year – surpassing the goal by over 200. However, a concerning trend of attrition reveals that over 9% of new recruits are leaving the service within their first year, a rate significantly higher than the overall military average of 4%.
The CAF currently grapples with a significant staffing deficit, facing shortfalls of as many as 14,000 personnel. Recognizing this, the budget dedicates $19 billion to repairing and upgrading defense infrastructure, with a particular focus on expanding ammunition supplies and improving training facilities.
For years, Canada’s defense spending has been a point of contention with NATO allies, particularly the United States. This budget marks a turning point, reaffirming a commitment to meet NATO’s 2% of GDP defense spending benchmark – a goal Canada has never previously achieved.
Looking further ahead, Canada pledges to meet the alliance’s recently increased target of 5% by 2035, demonstrating a long-term dedication to collective security. This represents a substantial increase in investment and a clear signal of intent.
A new Defence Investment Agency will be established, alongside continued development of a comprehensive defense industrial strategy. This strategy aims to reduce Canada’s reliance on American vendors for critical defense procurement, fostering a more independent and resilient supply chain.
Initial investments in this strategy will total $4.6 billion, forming part of a larger $6.6 billion allocation dedicated to its full implementation. The goal is to strengthen Canada’s domestic defense capabilities and ensure a secure future for the nation’s armed forces.
