Foreign Affairs Minister John Baird made the announcement in New York at a United Nations meeting.
Countries are gathered there to review the United Nations Global Counter-Terrorism Strategy.
The new funds will go to an existing program that supports training, equipment and technical assistance to help other countries prevent and respond to terrorists.
Baird called terrorism the great struggle of this generation and a phenomenon that knows no borders.
He says global threats require global action and Canada will continue to work with its allies to counter terrorism and promote democracy and human rights.
Baird applauded the UN for its definitive stance against terrorism.
He noted that many problems placed before the UN are often solved with the "pragmatic vagueness" that is the language of democracy, but the approach to counter-terrorism is crystal-clear.
He had less kind words for the press.
"Far too often, the international news media refuse to the use the word 'terrorist,' in the naive and mistaken belief that to report violence as a terrorist act is to cast judgement on the perpetrators' cause," Baird said in a prepared text of remarks.
"By pretending that everything is relative, these news media deny the very existence of terrorism."
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