For additional information about defense spending, contracts and defense programs, please read about Forecast International's Defense Budget Forecast.
Looking for DoD spending by cost type and service?
We have that too! ---Spending by Service
Top-100 DoD Contractors:
Top-100 DoD Contractors FY 2022
Top-100 DoD Contractors FY 2021
Top-100 DoD Contractors FY 2020
Welcome to the DoD Defense Spending page on AeroWeb. We cover defense spending both by spending type (procurement, RDT&E, O&M, MILPERS and MILCON), military service, and defense program. All defense budget figures presented on this page are by Budget Authority (discretionary + mandatory). All figures are current dollars (no inflation adjustment).
In FY 2019 (October 1, 2018 - September 30, 2019), total DoD spending by Budget Authority (discretionary + mandatory) was $712.6 billion dollars (up $18.1B / +2.6%). Of this amount, $641.1 billion was Base funding + $68.6 billion for OCO + $2.8 billion in funds for Disaster Relief/Border Security. In FY 2019, $146.8 billion were provided for Procurement and $95.5 billion for RDT&E. DoD Outlays were $654.0 billion.
In FY 2020 (October 1, 2019 - September 30, 2020), total DoD spending by Budget Authority (discretionary + mandatory) was $738.8 billion dollars (up $26.2B / +3.7%). Of this amount, $648.9 billion was Base funding + $71.3 billion for OCO + $18.6 billion in funds for Hurricanes Michael/Florence relief and Coronavirus relief. In FY 2020, $141.0 billion were provided for Procurement and $105.2 billion for RDT&E. DoD Outlays were $690.4 billion.
In FY 2021 (October 1, 2020 - September 30, 2021), total DoD spending by Budget Authority (discretionary + mandatory) was $719.5 billion dollars (down $19.3B / -2.6%). Of this amount, $718.5 billion is Base funding + $1.0 billion for OCO/Supplemental. In FY 2021, $140.9 billion were provided for Procurement and $106.1 billion for RDT&E. DoD Outlays were $717.5 billion.
In FY 2022 (October 1, 2021 - September 30, 2022), by Budget Authority (discretionary + mandatory), the DoD budget is $766.9 billion dollars (up $47.4B / +6.6%). Of this amount, $752.6 billion is Base funding + $14.3 billion for OCO/Supplemental. In FY 2022, the DoD budget provides $145.6 billion for Procurement and $119.2 billion for RDT&E. DoD Outlays of $767.3 billion are expected.
In FY 2023 (October 1, 2022 - September 30, 2023), by Budget Authority (discretionary + mandatory), the DoD budget is $784.0 billion dollars (up $17.1B / +2.2%). All funds are Base funding with nothing provided specifically for OCO/Supplemental. In FY 2023, the DoD budget provides $146.2 billion for Procurement and $130.5 billion for RDT&E. DoD Outlays of $764.8 billion are expected.
| DoD Spending FY2022-FY2023: | Total DoD | Outlays | O&M | Procurement | RDT&E | MILPERS | MILCON | |
| +2.2% | -0.3% | +0.7% | +0.4% | +9.5% | +3.8% | -23.8% |
| DoD Spending FY2021-FY2022: | Total DoD | Outlays | O&M | Procurement | RDT&E | MILPERS | MILCON | |
| +6.6% | +6.9% | +8.0% | +3.3% | +12.3% | +2.9% | +87.2% |
| DoD Budget (total) | Budget Funds for OCO (war / disaster) | DoD Outlays (money spent) | DoD Procurement |
Total DoD Defense Spending, Base, OCO and Procurement | FY 2013 - FY 2023 |
Total DoD defense spending
(Base + OCO) reached a then all-time high of $695.7 billion in FY 2010.
From FY 2010-15, defense spending was on a declining trajectory reaching a low of $570.8 billion in FY 2015.
From FY 2016-20, defense spending increased every year reaching a non-inflation adjusted all-time high of $738.8 billion in FY 20.
However, in FY 2021 (fiscal year that began October 1, 2020 and ended September 30, 2021), defense spending decreased 2.6%.
In FY 2022 (fiscal year that began October 1, 2021 and ended September 30, 2022), DoD spending is expected to have increased by as much as 6.6% to $766.9 billion (final figures not out yet).
In FY 2023 (fiscal year started October 1, 2022), DoD spending is expected to increase by another 2.2% to $784.0 billion.
In FY 2022, the Overseas Contingency Operations (OCO)/Supplemental
request is $14.3 billion, which is up from just $1.0 billion in FY 21, which was the lowest in many years.
No OCO/Supplemental funds have been requested for FY 23.
DoD spending on Procurement (Base + OCO) declined from $165.0 billion in FY 2008 to $97.8 billion in FY 2013.
From FY 2014-18 procurement had a strong run and increased by more than 50% to $147.5 billion - before stabilizing in the $141-147 billion range out to FY 22.
In FY 2023, we can expect procurement to increase by 0.4% to $146.2 billion.
All figures are Budget Authority (discretionary + mandatory).
Source is the official FY 2023 Budget Request from the U.S. Department of Defense.
DoD Spending | Military Personnel, O&M, Procurement, RDT&E, and Military Construction (MILCON) |
As illustrated, the by far largest line item in the DoD budget is Operations & Maintenance (O&M).
In FY 2023, $310.3 billion are provided for O&M expenditures, up $2.0 billion (+0.7%) from FY 2022.
In FY 2023, $184.8 billion in funding for Military Personnel (MILPERS) is expected, up $6.8 billion (+3.8%) from FY 2022.
In FY 2023, procurement funds amount to $146.2 billion, up $0.6 billion (+0.4%) from FY 2022.
Another significant DoD budget line item is RDT&E (Research Development Test & Evaluation).
In FY 2023, requested funding for RDT&E amounts to $130.5 billion, up $11.3 billion (+9.5%) from FY 2022.
RDT&E expenditures have surged over the past decade and are up by more than 105% since FY 2013.
A relatively small budget line item is Military Construction (MILCON).
In FY 2023, requested MILCON is $10.2 billion, down $3.2 billion (-23.8%) from FY 2022.
In FY 2009, spending on MILCON was as high as $26.8 billion but since declined to a low of $5.7 billion in FY 15.
All defense spending figures are Budget Authority (discretionary + mandatory)
and include OCO/Supplemental funding.
Source is the official FY 2023 Budget Request from the U.S. Department of Defense.
|
In the following, we focus on DoD defense spending by service and cost/expense categories. There are major differences in the way the military services spend their funds. For example, the Army is relatively "low-tech" compared to the Navy and the Air Force, due to the fact that the Army spends a higher proportion of funds on Military Personnel and O&M while spending less on Procurement and RDT&E. |
The Navy and Air Force spend more money on Procurement and RDT&E than the Army, even though the latter has received more funding in total in recent years. This is explained by the Navy's and Air Force's greater demand for high technology systems (aircraft, missiles, ships etc.). At the same time, the Army relies heavily on manpower to operate. In the following, the differences in spending are highlighted and discussed. |
Total DoD Spending by Service | FY2000-FY2023 |
Go to top of page |
From FY 2003 to FY 2014, the Army received the most DoD funding followed by the Navy and the Air Force.
However, in FY 15 both the Navy and Air Force surpassed the Army.
In FY 2023, $234.1 billion in total funding is provided for the Air Force, up from $222.2 billion or +5.3% from FY 2022.
In FY 2023, the Navy is expected to receive $231.1 billion, up from $221.3 billion or +4.4% from FY 2022.
In FY 2023, the Army will receive $177.0 billion, up from $174.5 billion or +1.4% from FY 2022.
Clearly, while the Army experienced major budget cuts from FY 2011-15,
the Navy, USAF and Defense-Wide agencies (such as MDA, DARPA, SOCOM and DISA) were much less impacted.
Figures are Budget Authority (discretionary + mandatory) and include OCO/Supplemental.
Source: FY 2023 DoD Budget Request.
Procurement Spending by Service | FY2000-FY2023 |
Go to top of page |
As shown, the Navy is expected to receive the most DoD procurement funds in FY 2023
followed by the Air Force. In FY 2023, $66.2 billion is provided for Navy procurement,
up from $63.2 billion or +4.7% from FY 2022.
In FY 2023, the Air Force is expected to receive $51.7 billion, up from $50.0 billion or +3.4% from FY 2022.
In FY 2023, the Army is expected to receive $22.4 billion, down from $23.8 billion or -6.2% from FY 2022.
Clearly, the Army is procuring much fewer vehicles, helicopters, weapons, missiles and other products and parts
compared to the peak in FY 2008 (FY08-FY23: -66.7%).
Figures are Budget Authority (discretionary + mandatory) and include OCO/Supplemental.
Source: FY 2023 DoD Budget Request.
RDT&E Spending by Service | FY2000-FY2023 |
Go to top of page |
The Air Force is expected to receive by far the most RDT&E (Research Development Test & Evaluation)
funds in FY 2023 followed by Defense-Wide activities (mainly MDA Ballistic Missile Defense (BMD) programs), Navy and Army.
In FY 2023, $60.0 billion has been provided for Air Force RDT&E, up from $53.1 billion in FY 2022 or +12.9%.
Since FY13, Air Force RDT&E is up by a whopping 164%.
In FY 2023, the Navy is projected to receive $24.3 billion, up from $22.1 billion or +9.7% from FY 2022.
In FY 2023, the Army is projected to receive $13.7 billion, down from $14.5 billion or -5.2% from FY 2022.
Clearly, the Air Force is the most "high-tech" branch in the U.S. military.
Figures are Budget Authority (discretionary + mandatory) and include OCO/Supplemental.
Source: FY 2023 DoD Budget Request.
O&M, Operations & Maintenance | FY2000-FY2023 |
Go to top of page |
As illustrated, Defense-Wide agencies are projected to receive the most O&M (Operations & Maintenance)
funding in FY 2023 followed by Navy, Air Force, and Army.
In FY 2023, the Navy is expected to receive $77.8 billion, up from $74.4 billion or +4.5% from FY 2022.
In FY 2023, the Air Force is expected to receive $73.0 billion, up from $70.0 billion or +4.4% from FY 2022.
In FY 2023, $70.3 billion in O&M funds are provided for the Army, up from $66.8 billion or +5.3% from FY 2022.
Figures are Budget Authority (discretionary + mandatory) and include OCO/Supplemental.
Source: FY 2023 DoD Budget Request.
Military Personnel Expenses | FY2000-FY2023 |
Go to top of page |
As illustrated, the Army is expected to receive the most Military Personnel (MILPERS) funds
in FY 2023 followed by Navy, Air Force, and Defense-Wide agencies.
In FY 2023, $69.1 billion in MILPERS funds are provided for the Army, up from $66.2 billion or +4.4% from FY 2022.
In FY 2023, the Navy is expected to receive $58.5 billion, up from $56.5 billion or +3.6% from FY 2022.
In FY 2023, the Air Force is expected to receive $46.3 billion, up from $44.7 billion or +3.5% from FY 2022.
Clearly, the Army relies heavily on manpower.
Figures are Budget Authority (discretionary + mandatory) and include OCO/Supplemental.
Source: FY 2023 DoD Budget Request.
MILCON, Military Construction Costs | FY2000-FY2023 |
Go to top of page |
As illustrated, the Navy is expected to receive the most DoD funds for MILCON
(Military Construction) in FY 2023 followed by Defense-Wide agencies, Air Force, and Army.
In FY 2023, the Navy is projected to receive $3.9 billion, down from $4.7 billion or -17.0% from FY 2022.
In FY 2023, $2.4 billion in MILCON funds are provided for the Air Force, down from $3.5 billion or -32.2% from FY 2022.
In FY 2023, the Army is projected to receive $1.3 billion, down from $2.6 billion or -49.6% from FY 2022.
Army MILCON has been hit hard in recent years and was down a whopping 91.5% from the peak in FY 2009 until bottoming out in FY 2015.
Figures are Budget Authority (discretionary + mandatory) and include OCO/Supplemental.
Source: FY 2023 DoD Budget Request.
|
|
|
|
|
|
