Full Breakdown
U.S. Pauses Canada-U.S. Defence Board Over Unclear NATO Spending Plan
5/22/2026, 5:13:34 AM
Suspension of the Permanent Joint Board on Defence
On 18 May 2026 the United States paused the Permanent Joint Board on Defence (PJBD), saying Canada has not presented a plan to meet NATO’s 3.5 % core-defense and 1.5 % infrastructure targets. Undersecretary Elbridge Colby noted the pause does not affect NORAD operations but halts dialogue.
NATO Spending Targets and Canada’s Recent Budget Moves
The 2023 NATO summit in The Hague set a 3.5 % core-defense target and a 1.5 % target for 2035. Canada met the legacy 2 % target in 2025, the first time since the Cold War, according to Prime Minister Mark Carney. The government says it will work toward the 5 % goal but has not released a roadmap.
Financial Snapshot
The Department of National Defence received $9.3 billion in 2025, supporting the 2 % NATO target within a $63 billion budget. Canada announced over $80 billion in spending for the next five years, including a $1.4 billion ammunition-production expansion and a $2 billion CP-140 aircraft modernization. Projections lack detail on reaching the 3.5 % core-defense level.
Official Statements & Responses
Maya Ouferhat said funding is advancing ammunition production, space surveillance, small-arms, communications, naval support and submarine modernization. Prime Minister Carney rejected U.S. claim that Canada has not boosted spending, citing the $80 billion plan and Canada’s role in modernising NORAD. He declined to share details of the forthcoming 5 % plan, calling release irresponsible.
Criticism & Opposition
U.S. officials say Canada has fallen short on rebuilding its armed forces and has delayed purchase of 88 F-35 jets, calling the delay “politics over our shared responsibility.” Former PJBD chair John McKay argues pause reflects U.S. irritation with Canada’s reconsideration of F-35 order. Defence analyst Dave Perry notes lack of a pathway to the 3.5 % target.
Timeline of Key Events
2024 – PJBD last met; 2025 – Canada reaches 2 % NATO target; 18 May 2026 – U.S. pauses PJBD; 28 April 2026 – Canada discusses investments, U.S. reiterates concerns.
Conflicting Reports & Gaps
The Department of National Defence has refused requests for five-year spending projections, leaving the path to the 3.5 % benchmark undocumented. U.S. officials cite the lack of a formal plan; Canada points to recent budget allocations without details.
Verbatim Quotes
- “Unfortunately, Canada has failed to make credible progress on its defense commitments,” — Elbridge Colby, Undersecretary of Defense for Policy
- “Canada is acting,” — Mark Carney, Prime Minister of Canada
- “The Canadian government’s delays and lack of transparency around its ongoing F-35 review are just one example of the prioritization of politics over our shared responsibility for North America’s defence,” — Unnamed senior U.S. official (background)
- “I think the Americans want to throw the whole thing under a bus and just run the whole thing themselves.” — John McKay, former Canadian chair of the PJBD
What’s Next
Canada says it will present a detailed spending roadmap before NATO’s 2029 review of the 2035 target. The United States indicated it will re-engage the PJBD once a credible plan is provided.
