armed forces
State of federal finances make NATO spending target very challenging

From the Fraser Institute
By Jake Fuss and Grady Munro
Defence Minister Bill Blair recently claimed the federal government could “absolutely” achieve the North Atlantic Treaty Organization (NATO) defence spending target of 2.0 per cent of gross domestic product (GDP—a measure of the size of the economy) by 2027. However, the dismal state of Canada’s finances makes this accelerated timeline very costly to Canadians.
First, some background. In 2014, Canada (along with the other NATO members) formally pledged to increase spending on defence up to a target of 2.0 per cent of GDP by 2024. At the time, Canada spent 1.01 per cent of GDP on defence. A decade has passed and Canada has failed to fulfill that pledge. Indeed, based on the current defence spending plan and the latest GDP projections, Canada’s defence spending is expected to reach just 1.34 per cent of GDP ($41.0 billion) in 2024/25.
Based on the latest spending estimates from NATO, Canada is one of only eight NATO members (out of 31 in total) to spend less than 2.0 per cent of GDP on defence. As the large majority of the alliance has now met the spending target, and President Donald Trump has called for the target to be raised even further to 5 per cent of GDP, Canada will have to dramatically increase defence spending (lest we be at complete odds with our allies).
However, meeting the NATO 2.0 per cent target by 2027/28 would require billions more in annual federal spending (see the following figure).Over the next three years, according to the Parliamentary Budget Officer (PBO), the federal government will increase defence spending from a projected $41.0 billion in 2024/25 to $53.5 billion in 2027/28—with the majority of this increase occurring in the first year. This means, based on the current plan, Canada’s defence spending would only reach 1.55 per cent of GDP by 2027/28.
To reach 2.0 per cent of GDP in 2027/28, the government would need to spend $68.8 billion on defence during that fiscal year. Assuming the initial jump remains the same, this implies the government would need to increase annual defence spending by $16.5 billion from 2025/26 to 2027/28—$15.3 billion more than currently planned.
The federal government plans to run four consecutive budget deficits from 2024/25 to 2027/28 that add up to $151.9 billion in expected borrowing. In other words, the government already plans to spend more than it collects in revenues. Assuming the government adopts the spending plan shown in the above figure, reaching the NATO target by 2027/28 would require an additional $22.7 billion in borrowing.
Increasing the amount borrowed will impose substantial costs on Canadians. In the near-term it results in higher debt interest payments. Government must pay interest on its debt—same as a family with a mortgage—and rising interest costs leave less money available for programs and services. For perspective, largely due to past borrowing under the Trudeau government, federal debt interest payments are expected to equal all Goods and Services Tax (GST) revenues (and then some) in 2024/25. Longer-term, an increase in borrowed money will also burden future generations of taxpayers who will likely face higher taxes to pay for today’s spending.
Clearly, borrowing money to fund higher defence spending will only worsen the state of federal finances, meaning Canada is in a lose-lose situation when it comes to meeting the NATO 2.0 per cent target—risk the consequences of further disappointing our allies or take on billions more in debt.
Instead, Ottawa should identify and cut wasteful spending and use those savings for national defence. Simply put, smaller and smarter government spending could help get Canada out of this lose-lose situation.
armed forces
Trump rebuilds the ranks: Army crushes 2025 recruitment goal early

MxM News
Quick Hit:
The Army has already exceeded its 2025 recruiting goal of 61,000 troops—four months ahead of schedule—as the Trump administration’s rollback of woke policies draws thousands back to military service.
Key Details:
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The Army’s 2025 recruiting goal was 61,000—higher than last year’s 55,000—and has already been met with more than four months remaining in the fiscal year. Officials report a 56% increase in average daily enlistment rates over last year.
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Army Secretary Daniel Driscoll thanked Trump and Hegseth, saying their “decisive leadership” and “putting soldiers first” contributed to the record-breaking numbers.
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Hegseth has aggressively pushed to eliminate leftist cultural initiatives in the military, including moves to administratively separate transgender troops and rename a Navy ship previously dedicated to gay rights icon Harvey Milk.
Diving Deeper:
The U.S. Army has reached a major milestone ahead of schedule—signing up 61,000 new recruits in fiscal year 2025, effectively smashing its annual goal months before the September 30th deadline. The achievement marks a dramatic shift after years of underperformance and is being touted as a vindication of the Trump administration’s efforts to reorient the military away from progressive social engineering and back toward warfighting readiness.
In a Wall Street Journal op-ed Tuesday, Army Secretary Daniel Driscoll praised the recruiting corps, attributing their success to both boots-on-the-ground determination and high-level support. “I’m incredibly proud of our U.S. Army recruiters and drill sergeants,” he said. “Their colossal efforts and dedication to duty helped the U.S. Army accomplish our FY25 annual recruiting goal a full four months ahead of schedule.” Driscoll continued, “I want to thank the commander in chief, President Trump, and Secretary of Defense Hegseth for their decisive leadership and support.”
The Army’s target of 61,000 recruits was a notable jump from last year’s 55,000 goal. Officials say that as of this month, daily enlistment figures are tracking 56% higher than the previous year.
Driving the increase, many believe, is the sweeping overhaul of military culture underway under Defense Secretary Pete Hegseth. Hegseth has made no secret of his intent to steer the armed forces away from what he calls “woke and weak” policies. That includes the Pentagon’s past focus on gender identity politics, climate initiatives, and mandatory diversity training—priorities Hegseth sees as incompatible with combat readiness.
“We are leaving wokeness and weakness behind,” Hegseth declared during remarks last month at the Special Operations Forces Week convention in Tampa. “No more pronouns, no more climate change obsession, no more emergency vaccine mandates. No more dudes in dresses. We’re done with that s***.”
Hegseth emphasized a military rooted in “lethality, meritocracy, accountability, standards and readiness,” and added pointedly, “Our combat formations don’t need to look like Harvard University—they need to look like killers.”
In line with that shift, Hegseth also this week ordered the Navy to remove Harvey Milk’s name from a replenishment ship. The vessel had been named in honor of Milk, a gay rights activist and former Navy officer who was elected to the San Francisco Board of Supervisors in 1977 before being assassinated a year later.
The directive aligns with what Hegseth calls “warrior culture” and the broader mission to reflect Trump administration priorities across the military’s assets and institutions. The Pentagon has yet to confirm a new name for the USNS Harvey Milk, and a spokesperson said reviews are ongoing.
The Army is set to mark its 250th anniversary on June 14th—a symbolic moment, officials say, as it reclaims its footing and begins to rebuild the force from a position of strength.
armed forces
New Trump-Pentagon ad resets mission: end wokeness, win wars

Quick Hit:
The Pentagon released a dramatic new ad Sunday featuring President Trump and Defense Secretary Pete Hegseth, highlighting the end of woke policies in the military and a renewed focus on strength, discipline, and warfighting.
Key Details:
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The ad, titled Peace through Strength, features intense training and combat scenes, underscored by speeches from Trump and Hegseth.
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“No more distraction, no more electric tanks, no more gender confusion, no more climate change worship,” Hegseth proclaims, signaling a sharp pivot from recent Pentagon policies.
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Trump promises that under his leadership, U.S. military success will be defined “not only by the battles we win, but also by the wars we end,” calling for peace built on American strength.
NEW U.S. MILITARY AD HITS HARD🇺🇸
"We are laser focused on our mission of warfighting… Our friends will respect us, our enemies will fear us, and the whole world will admire the unrivaled greatness of the United States Military" pic.twitter.com/jdm3MikswO
— The White House (@WhiteHouse) May 27, 2025
Diving Deeper:
The Pentagon launched a forceful new recruitment and branding campaign over Memorial Day weekend, spotlighting the military’s return to fundamentals under the leadership of Defense Secretary Pete Hegseth and President Donald Trump. The minute-long ad, titled Peace through Strength, premiered Sunday at the Coca-Cola 600 NASCAR event and was simultaneously posted to the Department of Defense’s social media accounts.
Using fast-paced training footage and dramatic music, the ad showcases troops in battlefield simulations and highlights a no-nonsense message from the Trump administration. Hegseth opens with a clear declaration: “No more distraction, no more electric tanks, no more gender confusion, no more climate change worship. We are laser-focused on our mission of warfighting.”
The video includes remarks from Trump affirming his vision for a military built on discipline and deterrence. “Through our power and might, we will lead the world to peace,” he says. “Our friends will respect us. Our enemies will fear us. And the whole world will admire the unrivaled greatness of the United States military.”
The ad was produced using previously recorded training footage, according to a Pentagon spokesperson who spoke to The New York Post.
Hegseth also makes a direct appeal to America’s youth, praising “incredible” young men and women “giving up the best years of their lives” to defend the country. He closes the ad with a quote that underscores the values behind the mission: “We don’t fight because we hate what’s in front of us. We fight because we love what’s behind us.”
The backdrop to the ad is a recruiting crisis that had plagued the military under Biden. In fiscal year 2022, the U.S. Army fell short by roughly 25% of its enlistment target. Similar gaps were recorded across other branches in 2023, with both the Navy and Air Force reporting thousands fewer recruits than needed.
Reversing that trend has been a key objective for Hegseth. He has made it clear that returning to a warrior culture—and scrapping the distractions of social experimentation—is central to solving the problem.
The ad’s release comes just days after the House passed the One Big Beautiful Bill Act, which adds $150 billion in new military funding. That package includes investments in shipbuilding, defense modernization, and Trump’s space-based Golden Dome missile defense initiative.
Together, the new ad and the legislation serve as a one-two punch from the Trump administration, signaling a full-spectrum push to rebuild, rearm, and reinspire the U.S. Armed Forces.
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