‘No surprise’: Govt responds after Hegseth says NZ defence spending ‘not enough’
Saturday, 30 May 2026
Defence Minister Chris Penk said he is not surprised by US Secretary of War Pete Hegseth’s comments that New Zealand is not spending enough on defence.
Hegseth told the Shangri-La Dialogue security summit in Singapore, which Penk attended, that the days of the 'US subsidising wealthy nations is over'.
According to a report by foreign affairs expert and Kiwi journalist Anna Fifield, Hegseth said nations should commit 3.5% of their GDP to defence spending. He described this figure as the 'new global norm'.
'For those nations that rise to this challenge, and embrace responsibility as true partners, the benefits will be clear. As our strategy states, we will prioritise working with model allies. Those nations that are most capable, clear-eyed and ready to defend their national interest.
'For those nations, we are moving them to the front of the line [with] expedited arms sales, deep industrial base collaboration, expanded intelligence sharing.'
He said nations which continued to 'free-ride on the generosity of the American taxpayer' would see a clear shift in the way the US conducted its business.
Hegseth, when asked by Fifield whether New Zealand was a 'freeloading' country, said that 2% was not enough.
'2% is not enough so 2% is freeloading. I don't have anything against New Zealand, I want partners to step up.
'I look forward to working with the new defence minister [Penk, who recently took over the portfolio from retiring minister Judith Collins] - that relationship has been a fruitful one for a very long time.'
The New Zealand Government committed about $1.5 billion to defence in Thursday's Budget, including funding for military drone systems, critical ship maintenance and naval upgrades, lifting spending to 2% of GDP.
The funding included an additional $880 million in operating funding and $700m in new capital funding, targeted at priority projects under the Defence Capability Plan.
Penk said the investment would support the Maritime Fleet Renewal programme, including work towards a modern, combat-capable navy, as well as two types of drones.
Penk: US position is ‘no surprise’
Asked about Hegseth’s comments, Penk told Stuff Thursday’s Budget continued New Zealand’s commitment to doubling its defence spend, with $5.8b of additional funding in the previous two budgets alone.
“New Zealand has a clear trajectory on defence spend. The government has said that this is a floor, not a ceiling, as our fiscal circumstances allow.”
In 2025, the Government committed to reviewing the Defence Capability Plan every two years to keep up with innovation, new technologies and emerging risks.
“The review also allows a staircase approach to investment, so we can adapt as the world around us changes.”
Penk said the US was a “long-standing, important security partner”, and had acknowledged New Zealand’s ramped up contribution to security and stability.
“The current administration has been clear and consistent about its expectations of all partners. Its position is no surprise.”
He added that he and Hegseth had discussed the close cooperation between the two countries: “I look forward to continuing this partnership.”
Prime Minister Christopher Luxon’s office declined to comment.
In a statement issued ahead of the Budget, Penk said that New Zealand had relied on its geographic distance “as a shield from instability elsewhere in the world”.
“However, recent events have served as a reminder of how quickly disruptions to international shipping routes can affect economies and supply chains across the globe. The oceans are not a barrier to danger, but a vital national interest that must be actively secured.”