New Zealand is investing nearly a billion dollars in its defense, with a strong focus on drones.

The New Zealand government has announced the allocation of NZ$1,58 billion (about US$924,6 million) in new funding for its defence in the 2026 budget, with a priority given to maritime security and the development of drone capabilities, Defence Minister Chris Penk said on Saturday.

This decision comes amid an accelerated modernization of the country's armed forces. New Zealand seeks to strengthen its power projection capabilities in the South Pacific and Southern Ocean, as its main maritime combat capabilities currently rely on two Anzac-class frigates, the HMNZS Te Kaha and the HMNZS Te Mana, put into service in the late 1990s and now nearing the end of their operational life.

According to the authorities, a large portion of the current fleet is expected to reach its operational limits by the mid-2030s, necessitating urgent investments to prevent a capability gap. In this context, the government has already announced in 2025 its intention to double defense spending to nearly 2% of GDP over eight years.

The new budget includes NZ$880 million in additional operating funds and NZ$700 million in investments for priority defense-related projects. A significant portion of these funds will be dedicated to fleet renewal and the integration of new technologies.

Among the projects announced is the deployment of two types of drones: one intended for long-duration intelligence, surveillance and reconnaissance missions in the Southwest Pacific, and the other designed to operate in polar environments, in order to support the operations of the Royal New Zealand Navy in the Southern Ocean.

The funding will also be used for major maintenance work on the Anzac-class frigates as well as on the HMNZS ship Canterburywith the aim of extending their service life until they are replaced. The Minister of Defence indicated that cumulative new investments in the sector now amount to NZ$5,8 billion since the publication of the Defence Capabilities Plan just over a year ago.