Home Business & Economy Military & Defence Carney announces new directions and spending for Canadian defence

Carney announces new directions and spending for Canadian defence

Canada to reach 2% of GDP NATO spending target on national defence by year-end 2025.

mark carney, toronto
Prime Minister Mark Carney made a defence and security priorities announcement in Toronto on June 9, 2025. [livestream]
CANADIAN NATIONAL NEWS & ANALYSIS

Monday June 9, 2025 | NATIONAL NEWS reporting from VICTORIA, BC [Posted at 9:45 am PT | Updated 10:08 & 10.22 & 10:29 am]

by Mary P Brooke | Island Social Trends


In Toronto today, Prime Minister Mark Carney made a defence and security priorities announcement concerning the federal government’s defence and security priorities.

In his remarks today, Carney frequently referred to the world being more dangerous and divided which is “unraveling the rules-based international order”.

Today’s messaging was multi-faceted, to the armed force, to Canadians, and to allies that the Canadian government hopes to partner with.

He pointed out that the international world order based on ‘rule of law’ was fused coming out of the second world war over 70 years ago and the end of the cold war which was about 40 years ago. Now things are changing.

Mark carney, prime minister
Prime Minister Mark Carney made a defence and security priorities announcement in Toronto on June 9, 2025. [livestream]

“While the consequences of these developments are profound we have agency in determining what comes next,” said Carney.

“Canada can work toward a new international set of partnerships that are more secure, prosperous, just and free,” the prime minister said in his opening remarks. That includes pursuing “deeper alliances with stable democracies”.

An element of diversification is to be part of ReArm Europe, he added during a press conference at Fort York that later followed his announcement.

carney, carigan, mcguinty, military, national defence
Prime Minister’s press conference on increased military spending, June 9, 2025 in Toronto (from left): Chief of the Defence Staff Jennie Carigan; Prime Minister Mark Carney; National Defence Minister David McGuinty. [livestream]

“This is not about getting to 2% it’s about defending Canada,” said Carney, along with remarks earlier of “no offence to NATO accountants” — that ‘s not about reaching a number but about spending where the needs are.

island social trends, canada-usa, news

A need for sacrifice:

Carney said that there will be a need for “sacrifice” which he later articulated in a media conference this morning as requiring “a degree of cooperation, consensus, a degree of speed that is going to be needed for nation-building investments as well as defence capacity”.

Later in today’s news conference Carney gave the first-time homebuyers tax break as an example of something that might be dropped in the future, as military spending commitments are met.

monk office, commercial accounts

As the United States changes course:

That note is set within a current context of the United States using military force against its own people in California over the past few days, where protests about immigration actions against ordinary people whore are resident in the US have been met with military unleashed by the president.

This is leading to internal strife in the US where California is going to sue Trump over national guard development, as announced by Calfornia Governor Newsom today.

national guard, USA, California
Unrest sparked by federal immigration raids in Los Angeles provided a catalyst for President Donald Trump to stage a demonstration of military force. [CNN photo – June 8, 2025]

Since Trump came to office in January of this year (and arguably since his election win in November 2024) he has been fostering chaos and division in the country. This has put Canada on alert, including in response to threats to Canada’s sovereignty as through repeated comments like Canada perhaps becoming the “51st state” of the United States.

The ire raised in most Canadians by the annexation threat has become political capital for Carney, which he seized upon during his election campaign which brought the Liberals back to a near majority, and now with this new defence policy and strategy which comes with a big price tag.

Threats to Canada’s sovereignty saw a pushback from King Charles III in reading Canada’s Throne Speech on May 27.

Jay's Construction - Renovations & General Contracting - Greater Victoria & South Vancouver Island

Minister of National Defence:

The news release and backgrounder also tie in David J. McGuinty, Minister of National Defence, on whose shoulders now rests a significant undertaking, what he is quoted as saying: “This historic investment will strengthen our sovereignty and invest in the Canadian economy – growing a world-class defence industry that fuels innovation and job creation.”

david mcguinty
Mational Defence Minister David McGuinty [2025 / web]

BOREALIS:

Key to the announcement are a change in Canadian defence policy that supports a significant spending boost and the unveiling of a new strategy and program called BOREALIS — the Bureau of Research, Engineering and Advanced Leadership in Innovation and Science — as part of the “new strategic approach”.

Of course, Borealis is a creative play on one of the most immediately-known features of Canada’s north, the aurora borealis display of lights in the Arctic sky. The name conveys a lighting of the way for Canada’s sovereignty through defence activity in the Arctic region. Politically-speaking this thrusts Canada’s north into the spotlight of strategic decision-making, notably the three northern territories: Northwest Territories, Nunavut and Yukon.

aurora borealis
The Aurora Borealis (aka the northern lights). [web]

All the more poignant for the new prime minister who was born in the Northwest Territories.

It’s noteworthy that the BOREALIS term was highlighted in Carney’s specch this morning but did not appear by that name in neither the news release nor the backgrounder that were issued afterward.

Eternal Bloom - gardening & landscaping - Greater Victoria areea.

Fast funding push:

Where the funds are coming from has yet to be itemized or announced. Carney said in recent weeks that a federal budget will be coming this fall.

This announcement today is a seismic shift for Canada, the military and taxpayers compared to just a few months ago. Notably the promise by Carney today is that Canada will reach a 2% of GDP spending target by the end of this year; that’s a sharp adjustment from the aim of 2% by 2030. That’s half a decade ahead of schedule.

“We’ll start by changing the way we support and invest in our armed forces,” he said. Initial expenditures will go toward salaries, housing and munitions.

“We will change the way we arm the men and women who serve so we can fight on new battlegrounds and unfamiliar territory. So we can defend every inch of our sovereign territory from sea floor to the Arctic to cyberspace,” said Carney this morning.

Pure Care Cleaning

New level of spending:

“Foundational Investments” in six areas include four pillars of the new defence direction (as part of a broader spending package) will include investments into Armed Forces members themselves and the equipment they use, enhancements to military capabilities, strengthening the defence industry and diversifying its partnerships.

“Our plan will help ensure that Canada is strong at home and reliable abroad,” he said. “We will ensure that every dollar is invested wisely, including by prioritizing made-in-Canada manufacturing and supply chains.”

Below are the planned investments for the Department of National Defence (DND) and the CAF, and the Communications Security Establishment (CSE) in 2025-26.

In his press conference today, Carney said that spending on personnel will be almost immediate. The investments on cybersecurity and AI will come a bit later.

The Beachlands, new oceanfront housing in Colwood.

The backgrounder to today’s announcement outlines the following, with keen attention to the talk of accountants, i.e. cash vs accrucal:

A Strong Fighting Force: $2.6 billion (both on a cash basis and on an accrual basis) to empower the military to recruit and retain the personnel needed to carry out its mandate.

  • Accelerate recruitment and reinforce retention to bring the CAF to 71,500 Regular and 30,000 Primary Reserve members by 2030 (13,000 Regular and Primary Reserve members are needed). This would include investments in recruitment and retention efforts to ensure that the CAF has the personnel it needs to be ready to respond effectively to threats at home and engage meaningfully abroad.
  • Invest in the civilian workforce to enable members of the Defence Team to support operational readiness, fleet maintenance, internal service functions, finance, policy procurement, public affairs, security, accountability, digital, and infrastructure requirements — allowing the CAF to focus on operational requirements.

Repair and Sustain – Equipment and Infrastructure: $844 million ($767 million on an accrual basis) to repair and sustain CAF capabilities and invest in revitalizing and optimizing key infrastructure.

  • Leverage Phase 2 of the National Procurement Program to increase funding for the repair and maintenance of CAF equipment. These additional resources will be allocated to critical fleets such as in land, maritime and aerospace domains.
  • Invest in repairing and sustaining existing DND/CAF infrastructure in order to maximize operational readiness and support CAF members. Infrastructure repair and sustainment will ensure that the CAF can continue using existing capabilities and be ready to bring online new capabilities.

Strengthening Digital Foundations: $560 million ($376 million on an accrual basis) to strengthen DND and the CAF’s digital foundations to ensure that the Defence Team is a relevant and modern workforce in today’s technological era. This funding will enable the Defence Team to be more resilient to cyber threats and leverage data strategically to improve decision-making, while keeping defence information safe and secure. This amount also includes funding for the CSE.

Expanding and Enhancing Existing and Emerging Military Capabilities: $1 billion ($431 million on an accrual basis) to grow existing and introduce emerging military capabilities that will allow Canada to become increasingly self-sufficient in fulfilling its responsibility to defend its territory and citizens, especially in the Arctic. To do so, DND will move forward with commitments made in ONSAF, with a focus on Canadian suppliers.

Strengthening Canada’s Relationship with the Defence Industry: $2.1 billion (both on a cash basis and on an accrual basis) to strengthen the Government’s relationship with Canada’s defence industry to lay the groundwork for a comprehensive Defence Industrial Strategy (DIS). These actions focus on immediate needs like reducing obstacles that currently limit industry’s ability to provide critical equipment and support to the CAF. As Canada cannot produce all needed military capabilities independently, the DIS will also strengthen Allied industrial partnerships and leverage joint NATO procurement mechanisms.

Developing Stronger Defence Partnerships: $2 billion (both on a cash basis and on an accrual basis) to diversify Canada’s defence partnerships beyond the United States (US). Canada will take advantage of both a strategic opportunity and imperative given changes in the global environment. As part of this effort, Canada will continue to leverage partnerships with the US when it is in Canada’s best interest to do so.

Note: Planned spending for 2025-26 also includes $135 million ($20 million on an accrual basis) for defence-related investments of other government departments and agencies.

island social trends, canada-usa, news

Directions and capabilities:

With today’s announcement, the Canadian government is “rebuilding, rearming, and reinvesting in the Canadian Armed Forces”.

Measures in this plan include:

  • Better pay for Canadian Armed Forces, improved recruitment and retention, and investments to support operational readiness, fleet maintenance, security, and infrastructure requirements.
  • New aircraft, armed vehicles, and ammunition, as well as support for projects currently underway.
  • Developing new drones and sensors to monitor the seafloor and the Arctic.
  • Repairing and maintaining existing ships, aircraft, and other assets.
  • More health care funding and staff for Armed Forces personnel.
  • Expanding the reach, security mandate, and abilities of the Canadian Coast Guard and integrating it into our NATO defence capabilities – to better secure our sovereignty and expand maritime surveillance.
  • Bolstering Canada’s defence industrial capacity.
  • Building capacity in artificial intelligence, cyber, quantum, and space.
  • Modern and secure digital infrastructure.

The plan will support key capabilities, including:

  • Arctic Over-the-Horizon Radar
  • Joint Counter-Drone Program
  • Joint Support Ships
  • Long-range precision strike capability
  • Increased domestic ammunition production
  • Additional logistics utility vehicles, light utility vehicles, and armoured vehicles
dumont tirecraft, fleet

Aligning with NATO goal:

The new announcement by Carney comes just a week after NATO defence ministers met and endorsed new spending targets to as much as five per cent of GDP, something leaders are expected to also commit to at the leaders summit later this month.

The 5% benchmark is not being met by any country to date, including the U.S.

According to NATO Secretary-General Mark Rutte’s annual report released in April, Canada’s defence spending likely hit 1.45 per cent last year.

City of Langford, 2025 property tax deadline

The Canada-US dance:

The separation between the old relationship that Canada has had with the United States has clearly been changing since Trump became the 47th president of the United States.

Canada’s new prime minister — who was off to a hampered start before he secured a mandate in the 45th general election in April — has had to grapple with how to steer this country in new directions.

ist main, langford, bc hydro
Vancouver Island and national news daily at IslandSocialTrends.ca .

===== RELATED: