Prime Minister Mark Carney announced Canada will increase its 2026 defence budget to $71.5 billion [1] during the NATO Summit in Ankara, Turkey.
The spending shift signals a strategic pivot to meet NATO defence targets and reinforce collective security alongside the U.S. amid evolving global threats.
Speaking on the final day of the summit this Wednesday, Carney said the funding increase will strengthen collective security and allow Canada to extend Operation Reassurance in Latvia [1]. The prime minister said President Trump has succeeded in pushing Canada and European allies to spend more on defence [2].
As part of the updated spending plan, Canada is committing $800 million [3] to acquire Kongsberg joint-strike missiles. Carney said these acquisitions are intended to enhance the nation's naval capabilities [3].
The budget increase follows ongoing pressure within the alliance to ensure members contribute their fair share to regional stability. While some reports suggested a budget of $70 billion [4], the Prime Minister’s Office confirmed the figure as $71.5 billion [1].
The extension of Operation Reassurance maintains a Canadian military presence in the Baltic region, a key component of the alliance's eastern flank defence. Carney said the move demonstrates Canada's commitment to the alliance's shared security goals.
“Canada will increase its 2026 defence budget to $71.5 billion to strengthen our collective security”
This budgetary shift represents a significant alignment of Canadian foreign policy with U.S. demands for increased NATO spending. By committing to a higher spending floor and expanding its footprint in Latvia, Canada is attempting to secure its standing within the alliance while modernizing its naval arsenal to address contemporary maritime security risks.
