Minister Champagne highlights Spring Economic Update measures to defend Canada’s sovereignty

Press Release

May 4, 2026 – Winnipeg, Manitoba – Department of Finance Canada

The world is becoming more challenging and divided, and the assumptions that shaped decades of Canadian defence and security are being upended. The threats Canada faces are numerous and growing, ranging from incursions into our Arctic waters to attacks targeting our cyberspace. In this context, Canada is strengthening its sovereign capabilities in critical sectors, and deepening cooperation with trusted partners, to safeguard our security and resilience.

In March 2026, NATO confirmed that Canada achieved its 2 per cent of GDP defence expenditure target—half a decade ahead of the previous government’s schedule, and for the first time since the fall of the Berlin Wall. In 2025-26, Canada spent more than $63 billion on its defence, marking the single largest year-on-year increase in defence investment in generations as part of an ambitious plan to rebuild, rearm, and reinvest in the Canadian Armed Forces (CAF).

Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, visited 17 Wing Winnipeg. He was joined by Ginette Lavack, Parliamentary Secretary to the Minister of Indigenous Services, and Member of Parliament for St. Boniface—St. Vital, the Honourable Terry Duguid, Member of Parliament for Winnipeg South, and Doug Eyolfson, Member of Parliament for Winnipeg West. Minister Champagne took the opportunity to highlight key defence investments and initiatives from the Spring Economic Update 2026:

It proposes to provide $103.8 million over five years, starting in 2026-27, and $22.3 million ongoing to establish and operate the Defence Investment Agency (DIA) as a stand-alone entity. The DIA is at the centre of the Defence Industrial Strategy (DIS), the whole-of-government approach which was launched in February to transform Canada’s defence industry.
It announces the government’s intention to introduce enabling legislation to establish the DIA as a stand-alone entity and legislative amendments to provide the DIA with expanded authorities.
Additionally, it proposes to provide $2.0 billion over three years on a cash basis, starting in 2026-27, to support Operation UNIFIER, which was launched in 2014 following Russia’s first invasion of Ukraine, and has enabled the CAF to train over 47,000 members of the Armed Forces of Ukraine, covering a range of basic and advanced military skills, including tactical medical training, combat engineering, and leadership skills and education.

The Minister also underscored how Team Canada Strong, which will invest roughly $6 billion to recruit, train, and hire 80,000–100,000 Red Seal trades workers nationwide, will help expand the pool of trades essential to the CAF and the defence sector—such as welders, machinists, electricians, and heavy‑equipment technicians. This includes creating new pathways to skilled trades through the Primary Reserves and the Cadets and Junior Canadian Rangers programs.

This visit provided the Minister with an opportunity to meet members of the Canadian Armed Forces who play a vital role in safeguarding Canada’s safety and sovereignty, while strengthening Canada’s position as a trusted ally. He reiterated Canada’s commitment to working with the Last Post Fund to ensure that the National Field of Honour in Pointe-Claire, Québec, remains a dignified and respectful resting place for Veterans and their families and to preserve Canada’s proud military legacy for generations to come.

Quotes

“We are on a mission to rebuild, rearm, and reinvest in the Canadian Armed Forces. By hitting our 2 per cent NATO target five years ahead of schedule, we are proving our commitment to global security and defending Canada’s sovereignty. We will continue to strengthen our defence capabilities, equip our forces with modern, Canadian-made equipment, and invest in our workers and our defence industry.”

– The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

“Defence investments are not only about meeting today’s operational needs—they are about building a secure, prosperous, and resilient Canada for generations to come. These investments are delivering measurable improvements in the CAF’s ability to operate effectively while supporting Canadian workers and businesses, particularly in the skilled trades, helping increase Canada’s overall economic resilience.”

– The Honourable David McGuinty, Minister of National Defence

Quick facts

The Defence Industrial Strategy (DIS) is a whole-of-government approach launched in February to transform Canada’s defence industry. It will prioritise Canadian suppliers and materials, invest in Canadian innovation and commercialisation, and streamline procurement to give businesses a consistent and predictable demand outlook.
Over the next ten years, the DIS will increase our defence exports by 50 per cent, raise the share of defence acquisitions awarded to Canadian firms to 70 per cent, and result in a step change in the size of Canada’s defence industry. It will also raise maritime fleet serviceability to 75 per cent, land fleets to 80 per cent, and aerospace fleets to 85 per cent.
The Defence Investment Agency is central to the DIS. The Agency will be responsible for re-equipping our military and driving economic benefits for Canada through the government’s generational investment in defence. The Agency is designed to accelerate the timeline of defence procurements, leverage defence procurements to strengthen Canada’s defence industrial base, and attract investment into Canada’s defence industry.
In August 2025, the government provided a pay raise for CAF members retroactive to April 1, 2025, resulting in an 8 per cent raise for colonels and above, a 13 per cent raise for lieutenant-colonels and below, and a 20 per cent increase in starting pay for privates in the Regular Force. A new Military Service Pay benefit, specifically tied to time in service, so paycheques also honour the years in uniform was also introduced.
In March 2026, NATO confirmed that Canada achieved its 2 per cent of GDP defence expenditure target. In 2025-26, the government spent more than $63 billion on our defence.
On April 29, 2026, multilateral negotiations on the Charter of the Defence, Security and Resilience Bank (DSRB) concluded in Montréal, which marked an important first step to set up the new institution.
Participating countries unanimously supported that, once ratified, Canada will serve as host country for the DSRB’s future headquarters.
The DSRB will provide long-term, low-cost financing for defence, security, and resilience initiatives across supply chains, helping small- and medium-sized enterprises and member governments to address critical financing gaps.