Defence to get $1.5 billion boost in Budget 2026, set to deliver two types of sea drone
Saturday, 23 May 2026
The Government will pump more than $1.5 billion into military drone systems, critical ship maintenance, and naval upgrades to strengthen the country's maritime security.
Announced by Defence and Veterans Minister Chris Penk on Saturday, the Budget next week would allocate an additional $880 million in operating funding, and $700m in new capital funding, for Defence.
The injection targeted priority projects under the Defence Capability Plan (DCP), focusing heavily on domestic and international sea security.
“The Maritime Fleet Renewal programme will receive funding for the ongoing work of delivering a modern and combat capable navy, as well as for two types of drones,” Penk said.
One drone system would be deployed to the South-West Pacific for long-duration intelligence, surveillance, and reconnaissance. The second, polar-capable drone would conduct missions from vessels in the Southern Ocean.
The funding would also cover essential life-extension maintenance for the country's Anzac-class frigates and HMNZS Canterbury vessel, until the fleet is replaced.
Penk said New Zealand’s geographic distance could no longer be seen as a shield from global instability.
“Recent events have served as a reminder of how quickly disruptions to international shipping routes can affect economies and supply chains across the globe,” he said.
“The oceans are not a barrier to danger, but a vital national interest that must be actively secured.”
Outside of the maritime fleet, the Budget invested $1.5m in capital funding and $16m in operating funding to launch a Technology Accelerator pilot programme, which connects local industry with the military to solve specific challenges.
Further funding would be directed toward constructing new training facilities and building modern housing under Defence’s ongoing Homes for Families scheme.
According to the Government, more than 80% of the Defence Force's $2.6b operating and personnel budget is spent domestically, “bolstering the economy while serving the dual benefit of ensuring we have a strong Defence Force”.