Mr. Speaker, the global security environment today is volatile and uncertain. We face real challenges, both military and non-military, that demand an equally strong and coordinated response. Canada must be prepared to defend ourselves and our allies.
Our government has announced the most ambitious defence rebuild in a generation. Today, with the 2026-27 main estimates, we are putting the money behind that commitment. I am really pleased to stand in the House to talk about this today, representing my riding of Halifax. Halifax is home to the largest defence base in the country. CFB Halifax, in one form or another, has existed since the 18th century, predating Canada as we know it. The military and our armed forces members are ingrained in our history and are already shaping our future.
Our city is advancing incredible projects for the Canadian Armed Forces. We are building the River class destroyers and we are home to NATO DIANA and the Maritime DISH. As we prepare our next big defence procurement with the new fleet of submarines, there is even more possibility for Halifax.
The government is requesting $50.7 billion for the Department of National Defence. That is $15 billion more than the previous year, or a 42% increase in funding. That includes $5.1 billion in new operating funding, $7.1 billion in capital and $2.3 billion in grants and contributions.
These are not abstract numbers. They represent real capabilities and real investments in real people: the personnel who wear the uniform and defend this country every day.
Last year, Canada hit 2% of GDP on defence for the first time since the fall of the Berlin Wall, half a decade ahead of schedule. Reaching the 2% benchmark is a foundational step in renewing Canada's defence and a clear statement of resolve in a more dangerous world. We are now working toward NATO's new defence investment pledge: 3.5% of GDP for core defence and 1.5% for broader defence and security infrastructure, for a total commitment of 5% of GDP by 2035.
As the Prime Minister noted at CANSEC, Canada is already meeting that 1.5% target for critical defence infrastructure. These estimates keep that momentum going. Canada's new government is delivering on its promise to make generational investments in the women and men of the Canadian Armed Forces and to further accelerate these investments in the years to come. In a more dangerous and divided world, Canada is taking full responsibility for defending our sovereignty and building our strength as a reliable partner and ally.
Our government made a promise to rebuild, rearm and reinvest in the Canadian Armed Forces, and we are getting it done. A military is only as strong as its people, and this government has made clear that our people in uniform deserve to be treated accordingly. The $1.3 billion in these estimates reflects the historic pay increase we delivered for CAF members; the largest in a generation. Better pay means better recruitment. It means better retention and a more capable and more ready force.
The results are already showing. CAF recruitment is the highest it has been in three decades. Last fiscal year, we surpassed our recruitment goals, bringing in over 6,700 new regular force members. We are also investing $274.9 million in CAF recruitment and training to modernize how we attract and develop the next generation of service members. We are building a more robust recruiting and training system, and we will dedicate the resources needed to be successful.
There is $274.5 million committed for Canadian Forces health services, because the obligation to care for our people does not end when an operation does. The CAF continues to build a more modern, effective and inclusive military supported by digital tools and data-driven processes. Work is ongoing to improve efficiency, reduce delays and align recruitment and training systems with the evolving needs of the organization and of Canadians.
Words do not defend Canada, but capabilities do. The CAF must be ready to operate in the Arctic, across North America, through NORAD, within NATO's collective defence framework and wherever global stability demands a Canadian contribution. These estimates include $7.3 billion for in-service support, keeping the equipment we have available, reliable and sustainable. As well, there is $1.2 billion for fleet equipment readiness to adapt and respond to a faster and more complex security environment. Preparedness also means investing in what comes next.
That is why we have included $12.8 billion for major multi-stage procurements, River class destroyers, joint support ships, Canadian multi-mission aircraft and critical infrastructure investments that will serve Canada for decades. These capabilities will defend our sovereignty in the north, protect our maritime approaches and allow us to operate shoulder to shoulder with our allies.
The Canadian Coast Guard is part of the Department of National Defence's main estimates. The $4 billion included here funds its critical missions, search and rescue, icebreaking, environmental response and ocean science. As part of the defence portfolio, the Coast Guard will now do more, sharing intelligence, coordinating with defence partners and enhancing Canada's maritime security posture. In a country with three oceans and the world's longest coastline, that is no small thing.
No country defends itself alone, not Canada and not our allies. That is reflected in the $3.3 billion in grants and contributions, funding programs, organizations and partners whose work advances Canada's defence mandate. A significant share supports Ukraine through the military training and co-operation program, because the fight for a rules-based international order is one in which Canada has a direct stake.
We are investing in NATO initiatives that strengthen interoperability, intelligence sharing and collective decision-making across the alliance. We are also doubling down on Canada's defence industrial base. These estimates include initial investments for the new Canadian defence industry resilience program, strengthening domestic production capacity and Canadian sovereignty.
That includes support for nitrocellulose production, a critical energetic material for artillery that is in high demand across allied militaries. Programs like IDEaS and MINDS continue to connect innovators, academics and industry to the defence mission, turning Canadian expertise into Canadian capability.
In February, we released Canada's first-ever defence industrial strategy. The framework is straightforward: building Canada first, partnering where we cannot and buying smart where we must. These estimates put that strategy into action.
Spending more is only part of the story. Spending well is the other part. Through the comprehensive expenditure review, the Department of National Defence is targeting approximately $460 million in operating cost reductions from 2026-27 through 2028-29. That means continuing the fleet divestment strategy, streamlining the real property portfolio, expanding energy performance contracts and modernizing project approvals and internal business processes.
The global security environment is not waiting for anyone. We are building again. The 2026-27 main estimates are a down payment on that commitment, an investment in people, in preparedness and in the partnerships that make Canada stronger. We are spending with purpose, we are investing with urgency and we are rebuilding the Canadian Armed Forces with the ambition this moment demands. I urge all members to support these estimates.