Mr. Speaker, I am pleased to rise today to speak to the 2026-27 main estimates for national defence and to this government's efforts to rebuild, rearm and reinvest in the Canadian Armed Forces.
We all know the global threat landscape has changed. The threats we face are numerous and multiplying, from incursions in the Canadian Arctic to attacks on our cyberspace. Canada cannot meet these challenges with yesterday's tools. The first job of the government is to keep Canadians safe. Our government is protecting Canadians and supporting our allies with an approach that transforms defence procurement. We need a ready and resilient Canadian Armed Forces that can recruit and retain skilled people and that has the training, infrastructure and modern capabilities needed to succeed in today's complex and volatile security environment.
Defence and security have become the nation's top priority, as evidenced by the significant increase in planned spending in the 2026-27 main estimates. We are requesting $50.7 billion for the Department of National Defence. That is $15 billion over the previous year, roughly a 42% increase in funding. That includes an additional $5.1 billion in operating funding, $7.1 billion in capital funding and $2.3 billion in grants and contributions. These are significant investments in Canada's security, our sovereignty, our alliances and our people in uniform, who give so much of themselves to serve this country.
Last year, Canada spent 2% of GDP on defence for the first time in nearly four decades, ahead of its original schedule. With these main estimates, we are continuing that momentum, working toward NATO's new defence investment pledge of 5% of GDP by 2035. That commitment includes 3.5% for core defence requirements and 1.5% for broader defence and security-related spending. In fact, the Prime Minister noted at CANSEC that Canada is already meeting that 1.5% target for critical defence infrastructure.
These estimates will help us support our people, strengthen our preparedness and build the partnerships Canada needs in a more dangerous world. A significant portion of this funding, $1.3 billion, reflects last year's historic pay increase for members of the Canadian Armed Forces to better reflect the unique challenges and sacrifices of a life of service. Improved compensation also strengthens recruitment and retention, reinforces readiness and gives members in uniform greater certainty as they serve. The estimates also include $274.9 million for CAF recruitment and training. This will help update processes and systems to improve the applicant experience and grow the pool of prospective members. It will also modernize training so new members can get up to speed quickly and start contributing sooner in the roles they signed up for. There is also $274.5 million for Canadian Forces health services to care for our people serving across Canada and overseas. Compensation, benefits, health care and predictable support are all necessary to support military readiness.
Equally necessary are the capabilities to defend Canada, support North American security and contribute to peace and stability with our allies and partners. The CAF must be prepared to operate at home and abroad, defend Canadian sovereignty in the Arctic, strengthen continental security through NORAD operations, contribute to collective defence through NATO and support other missions that enhance global peace and regional stability. These estimates include funding for those operations, as well as contribution funding for military training and capacity-building activities. They also include $7.3 billion for in-service support to ensure the availability, reliability and long-term sustainability of military equipment. We are also requesting $1.2 billion for fleet equipment readiness to give the defence team the direction and resources needed to adapt and respond to a more dynamic and complex security environment.
Canada also needs to make major investments in future capabilities. That is why we have included $12.8 billion for multi-stage procurements that will allow the CAF to operate effectively now and for decades to come: river-class destroyers, joint support ships, Canadian multi-mission aircraft and other major equipment and infrastructure investments. These will strengthen Canada's sovereignty in the north, protect maritime approaches, support deployed operations, contribute to continental defence and operate alongside allies.
The Canadian Coast Guard is also part of the national defence main estimates. The $4 billion we have included for the Coast Guard will go toward capital funding, operating funding and grants and contributions. The Canadian Coast Guard will continue to deliver its critical missions of search and rescue, icebreaking, environmental response, safe navigation and ocean science. However, as part of National Defence, it will now play a greater role in Canada's security, collaborating with security and defence partners to share information, coordinate activities and enhance training, strategic planning and innovation, because in a country with three oceans and the world's longest coastline, the Coast Guard's maritime expertise is a national asset, and it is one of great pride.
All of these investments are necessary to boost Canada's preparedness in a precarious world. We need to plan, be strategic and maintain the discipline required to focus our resources where they deliver the greatest value.
We know, too, that we cannot do this alone. Defending Canada and contributing to global stability is a national effort that demands strong partnerships across the government, industry and academia and with our allies. That is why National Defence's grants and contributions have increased significantly, with $3.3 billion in the main estimates to support programs, organizations and recipients whose activities advance Canada's defence mandate. A large part of this funding supports Ukraine through the military training and co-operation program. It includes contributions to NATO initiatives that benefit all allies while strengthening Canada's access to shared decision‑making, intelligence, capabilities and interoperability.
We are also strengthening Canada's defence industrial base. That includes establishing a new Canadian defence industry resilience program. These estimates include initial investments for this program, which will strengthen Canadian sovereignty and increase production capacity for Canadian defence businesses. It will also support Canada's ability to produce nitrocellulose, which is a critical, high-demand, energetic material for artillery.
We are collaborating with innovators, academics, defence and security experts and other partners through programs such as IDEaS, innovation for defence excellence and security, and MINDS, mobilizing insights in defence and security. All of these partnerships help turn Canadian expertise into defence capability. They support innovation, domestic capacity and Canada's ability to contribute to allied security with greater resilience and independence.
In conclusion, Canadians expect their government to protect the country, support the people who serve and manage public funds responsibly. We want to reassure them that National Defence continues to find savings through the comprehensive expenditure review.
The departmental plan outlines approximately $460 million in operating cost reductions, beginning in 2026‑27 and continuing through to 2028‑29. These measures include continuing the fleet divestment strategy, streamlining the real property portfolio, expanding energy performance contracts and modernizing project approvals and internal business processes. That work reinforces the same principle that runs through these estimates. We are spending with purpose, focusing our resources and delivering better value for the defence team, for CAF members and for Canadians. We are investing in people. We are investing in preparedness. We are investing in partnerships.
The 2026‑27 main estimates support Canada's path towards NATO's new defence investment pledge and they reflect this government's commitment to rebuild, rearm and reinvest in the Canadian Armed Forces.
The world has changed, and Canada's defence investments are changing with it.