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NATO Secretary General Mark Rutte and Netherland's Prime Minister Dick Schoof welcomes Canadian Prime Minister Mark Carney during the official greeting at the NATO Summit in The Hague, Netherlands on Wednesday, June 25, 2025. 

Canada has officially hit NATO’s long‑standing defence spending benchmark, marking its first return to the 2% threshold in more than three decades. The milestone reflects a major policy shift under Prime Minister Mark Carney, who accelerated defence investments years ahead of previous projections. 

Canada Reaches NATO’s 2% Defence Spending Target for the First Time Since 1990

Canada has met NATO’s requirement that member states spend 2% of GDP on national defence, a benchmark the country had not reached since the end of the Cold War. According to NATO’s latest accounting, Canada spent just over $63 billion on defence in the 2025 fiscal year, propelled by a significant funding boost and internal accounting adjustments. 

What Drove the Increase

  • A $9.3‑billion surge in defence funding last June helped push Canada over the line. 
  • The Carney government accelerated timelines set by previous administrations, which had projected the 2% target would not be met until 2032.
  • Canada’s renewed commitment comes amid heightened pressure from NATO allies—especially the United States—to strengthen collective defence.

Why It Matters

Meeting the 2% threshold carries both symbolic and strategic weight within the alliance. It signals Canada’s intent to play a more assertive role in global security at a time when NATO members are preparing for even higher spending expectations, with a new target of 5% of GDP by 2035. 

Looking Ahead

Canada’s defence spending trajectory is set to continue rising as the government works toward the more ambitious long‑term goals endorsed by NATO leaders. The shift marks one of the most significant changes in Canadian defence policy in decades.


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