New Zealand is set to expand its maritime defence capability with major investment in drones, naval fleet upgrades and ship maintenance as part of a $1.6 billion Defence funding package announced in Budget 2026.
Defence and Veterans Minister Chris Penk said the funding would strengthen the country’s ability to protect key shipping routes and respond to growing international instability, warning that oceans could no longer be viewed as a natural shield from global threats.
The package includes $880 million in new operating funding and $700 million in capital funding for projects under the Defence Capability Plan, including work on a renewed “combat capable” navy.
Two new drone systems will also be introduced, with one designed for long-range surveillance operations in the South-West Pacific and another capable of operating from Royal New Zealand Navy vessels in the Southern Ocean. Funding has also been allocated for maintenance work on the Anzac-class frigates and HMNZS Canterbury to extend their operational life until replacement vessels are delivered.
Additional spending will support upgraded military training facilities, defence housing projects and a new Technology Accelerator programme linking New Zealand businesses with Defence to solve military challenges. Penk said the investment reflected expectations that New Zealand personnel and equipment would increasingly be called upon both domestically and overseas in coming years.
