Aerial view of the B Jetty. Photo by Department of National Defence.
ESQUIMALT – Canada has bumped up its funding of the Canadian Armed Forces, and has achieved the NATO spending target of two percent of GDP this year.
It also announced spending for the Esquimalt jetty project and military housing on April 1.
$1.1 billion will be invested to replace the aging A and B jetties in Esquimalt, supporting Royal Canadian Navy operations and future fleet requirements. That project is expected to support approximately 1,280 jobs during construction.
Expanded access to military housing was also announced, including 7,500 new units built at 25 locations across Canada, including Esquimalt and Comox, and the launch of the second phase of a national housing construction program valued at over $3.7 billion.
Meeting the 2% NATO target is the beginning of a sustained effort to rebuild the Canadian Armed Forces, restore operational readiness, and deliver the warfighting capabilities required to deter threats, defend Canada, and contribute to the defence of North America and international security.
Over the next decade, the federal government states it will deliver half a trillion dollars in defence investment, putting the country on a clear path toward meeting the new NATO Defence Investment Pledge of 5% of GDP by 2035.
“This investment ensures the Canadian Armed Forces have the modern infrastructure and capabilities required to operate effectively in today’s security environment,” says Minister of National Defence David McGuinty. “It strengthens readiness, supports our members and their families, and delivers real economic benefits through job creation and partnerships with Canadian industry. It is a clear demonstration of Canada’s commitment to contribute to NATO and to safeguard our country and our interests at home and abroad.”
In 2025-26, approximately $63 billion was spent on defence across the Department of National Defence, the Canadian Armed Forces, the Canadian Coast Guard, and other government departments on personnel, infrastructure, equipment, and operational priorities.
The government states that these increasing investments in core military capabilities put Canada on a pathway to meet the new North Atlantic Treaty Organization Defence Investment Pledge to invest five percent of gross domestic product by 2035.
The Canadian defence industry contributes nearly $10 billion to the gross domestic product and supports over 81,000 jobs.
Veterans Affairs Canada is the second largest contributor to Canada’s NATO spending, at $7.8 billion for 2025-2026. Over 90% of the Department’s budget represents benefits or services provided to Veterans, their families and Veteran-serving organizations. Budget 2025 provides funding that will further allow Veterans Affairs Canada to support our NATO contributions: $184.9 million over four years starting in fiscal year 2026-2027 and $40.1 million ongoing.
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