The Pentagon freezes the 86-year-old U.S.-Canada defense board, demanding Ottawa raise military spending and close its stalled C$19B F-35 deal — or risk deeper fractures in continental air defense.
The Pentagon has suspended U.S. participation in the Permanent Joint Board on Defense, the senior bilateral advisory body coordinating U.S.-Canada continental defense since 1940, accusing Ottawa of failing to meet defense spending commitments and of indefinitely stalling a signed F-35 fighter jet acquisition.
Undersecretary of Defense Policy Elbridge Colby announced the pause on the social media platform X. “Unfortunately, Canada has failed to make credible progress on its defense commitments,” Colby wrote. “DoW is pausing the Permanent Joint Board on Defense to reassess how this forum benefits shared North American defense.”
Colby framed the decision as a response to a gap between Canadian commitments and action. “We can no longer avoid the gaps between rhetoric and reality,” he added. “Real powers must sustain our rhetoric with shared defense and security responsibilities.”
A Pentagon official, speaking on condition of anonymity, told Reuters that Canada has not taken the steps required to be a reliable partner. “Canada has yet to make the hard decisions and tradeoffs needed to put it on track to become a credible partner in the mutual defense of our continent and hemisphere,” the official said.
The official identified two specific conditions Ottawa must satisfy: committing to a resource-backed plan to raise core defense spending from 2% of GDP annually to 3.5% by 2035 — the target established at NATO’s Hague Summit — and bringing its prolonged F-35 review to a close. “Canada has yet to articulate a path to reach NATO’s new defense spending targets,” the official said.
F-35 Review Draws Sharp Rebuke
The Pentagon singled out Canada’s unresolved review of its planned purchase of 88 Lockheed Martin F-35A Lightning II stealth fighters as a prime example of misplaced priorities. Canada signed a C$19 billion ($13.9 billion) contract in January 2023 to replace its aging CF-18 fleet, but Prime Minister Mark Carney ordered a formal review in spring 2025 amid worsening trade tensions with the United States and concerns about over-reliance on the U.S. defense industry.
The review was expected to conclude by approximately September 2025. It remains unresolved. Canadian Defence Minister David McGuinty confirmed on April 28, 2026, that the review was still ongoing with no decision timeline given.
“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 defense,” the Pentagon official said. “The Department welcomes a rapid conclusion to this review.”
Cost escalation has driven much of the political friction. Analyst Andrew Latham cited findings from Auditor General Karen Hogan: “According to Auditor-General Karen Hogan, the price tag has jumped from 19 billion Canadian dollars to 27.7 billion Canadian dollars — an $8.7 billion surge driven by inflation, foreign exchange pressures, and an overheated munitions and aerospace market.” Hogan also warned that Canada would need an additional C$5.5 billion to achieve full operational capability, with high-case projections from the Office of the Auditor General placing the eventual bill at C$34 billion.
Those concerns are compounded by unresolved technical problems within the F-35 program itself. A 2025 report by the U.S. Director of Operational Test and Evaluation found that the critical Technology Refresh 3 software package was “predominately unusable” for most of the year due to severe stability issues. The Pentagon responded by slashing its own 2026 F-35A procurement orders by 45 percent, reducing planned U.S. Air Force purchases from 48 to 24 aircraft.
Canada has committed financially to the first 16 aircraft and has made advance payments on long-lead components for another 14 to hold production slots. Nevertheless, Ottawa has been exploring Swedish manufacturer Saab’s JAS 39 Gripen E as an alternative, with Saab CEO Mikael Johansson stating Canada was looking to avoid being “too dependent on the US” by “having a dual fleet, both F-35 and the Gripens.”
Canada Rejects Pentagon’s Assessment
Maya Ouferhat, a spokesperson for Defence Minister McGuinty, pushed back on the Pentagon’s characterization. “We continue to accelerate our path to NATO’s new target of 3.5% on core defence spending by 2035,” Ouferhat said in a statement to Reuters. Canada plans to spend about $87 billion over 20 years to modernize NORAD and strengthen continental defense, she added, noting that increased spending was already advancing capabilities across ammunition production, space surveillance, small arms, military communications, naval support, submarine modernization, and long-range patrol aircraft.
Carney played down the suspension. “I wouldn’t overplay the importance of this. We have many aspects of very close defense cooperation with the United States,” he told reporters on May 19, pointing to continued joint operations under NORAD. Carney has declined to publish a detailed spending road map, saying: “There’s a couple of reasons why we don’t immediately specify that… The core reason is we want to spend the money well.”
NORAD Intact, but Contingent
The Pentagon confirmed the PJBD pause will not affect NORAD operations, calling the command “critical to securing the northern approaches to the U.S. and Canadian homelands.” The official cautioned, however, that NORAD’s mutual benefit depends on Canada “contributing proportionately.”
The stakes extend beyond symbolism. U.S. Ambassador Pete Hoekstra warned in January 2026 that a reduced Canadian F-35 order could alter the bilateral NORAD treaty and force the United States to deploy its own aircraft into Canadian airspace to monitor Russian and Chinese incursions — an outcome that would represent a direct erosion of Canadian air sovereignty.
A Divided Washington
Not all U.S. officials endorsed the move. Republican Rep. Don Bacon of Nebraska posted on X: “Cooler & wiser brains are needed to preserve a close alliance w/ our neighbor.” Bacon traced the friction to earlier provocations from Washington: “This all started w/ taunts of ‘Canada will be the 51st state’ & ‘their Prime Minister will be the 51st governor.'” He concluded: “The insults gained us nothing but animosity that cost us economically & now militarily.”
The Permanent Joint Board on Defense was established in 1940 under the Ogdensburg Agreement by President Franklin D. Roosevelt and Prime Minister Mackenzie King. The board historically recommended major joint infrastructure — the Alaska Highway, the defense of Newfoundland, and early warning radar networks — that ultimately gave rise to NORAD. The board had already been in a de facto pause since its last meeting in 2024, with neither government having appointed a new co-chair.
Key Takeaways
- The Pentagon suspended the Permanent Joint Board on Defense — the 86-year-old bilateral body coordinating U.S.-Canada continental defense — citing Ottawa’s failure to meet defense spending commitments and complete its F-35 procurement review.
- The U.S. demands Canada commit to a road map reaching NATO’s 3.5% GDP defense spending target by 2035; Canada has not yet publicly mapped that path.
- Canada’s F-35 program costs surged 46% to C$27.7 billion, triggering a prolonged review and Ottawa’s consideration of Saab’s Gripen as an alternative.
- NORAD operations remain unaffected, but the Pentagon warned that mutual benefit depends on proportionate Canadian contributions.
- S. Ambassador Hoekstra warned a reduced F-35 order could compel direct U.S. air patrols over Canadian territory under a revised NORAD treaty.