U.S. DoD Defense Spending

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Welcome to the DoD Defense Spending Section on AeroWeb. This section covers defense spending both by spending type (procure-ment, RDT&E, O&M, MILPERS and MILCON), military service, and defense program. All defense budget figures presented on this page is by Budget Authority (discretionary + mandatory) unless otherwise specified. All figures are current dollars (no inflation adjustment).




FY 2014


In FY 2014 (October 1, 2013 - September 30, 2014), the DoD budget was $595.7 billion dollars (+$10.4B / +1.8%). Of this amount, $501.7 billion was Base funding + $94.0 billion for OCO. In FY 2014, the DoD budget provided $100.4 billion for Procurement and $63.5 billion for RDT&E. Defense Outlays were $577.9 billion.



FY 2015


In FY 2015 (October 1, 2014 - September 30, 2015), the DoD budget was $570.8 billion dollars (-$24.9B / -4.2%). Of this amount, $504.9 billion was Base funding + $64.3 billion for OCO. In FY 2015, the DoD budget provided $102.1 billion for Procurement and $65.2 billion for RDT&E. Defense Outlays were $562.5 billion.



FY 2016


In FY 2016 (October 1, 2015 - September 30, 2016), the DoD budget was $595.7 billion dollars (+$24.9B / +4.4%). Of this amount, $528.5 billion was Base funding + $58.6 billion for OCO. In FY 2016, the DoD budget provided $118.9 billion for Procurement and $69.5 billion for RDT&E. Defense Outlays were $565.4 billion.



FY 2017


In FY 2017 (October 1, 2016 - September 30, 2017), the DoD budget is $594.1 billion dollars (-$1.6B / -0.3%). Of this amount, $529.2 billion is Base funding + $65.0 billion for OCO. In FY 2017, the DoD budget provides $119.7 billion for Procurement and $70.5 billion for RDT&E. Defense Outlays of $569.2 billion are expected.



FY 2018


In FY 2018 (October 1, 2017 - September 30, 2018), by Budget Authority, the DoD budget is $646.8 billion dollars (+$52.7B / +8.9%). Of this amount, $582.3 billion is Base funding + $64.6 billion for OCO. In FY 2018, the DoD budget provides $125.4 billion for Procurement and $83.7 billion for RDT&E. Defense Outlays of $605.9 billion are expected.

DoD Spending FY2017-FY2018: Total DoD OCO O&M Procurement RDT&E MILPERS MILCON
+8.9% -0.6% +9.2% +4.8% +18.7% +5.4% +35.6%
DoD Spending FY2016-FY2017: Total DoD OCO O&M Procurement RDT&E MILPERS MILCON
-0.3% +10.3% +2.0% +0.7% +1.4% +0.2% -4.0%
DoD Budget (total) Budget Funds for OCO DoD Outlays (money spent) DoD Procurement
5-Year DoD Defense Spending Overview

Total DoD Defense Spending and Procurement | FY 2008 - FY 2018

DoD Defense Spending from FY 2008 to FY 2016, FY 2017 and FY 2018 - Base, OCO, Procurement and Total

Looking at the chart above, you can see that total DoD defense spending (Base + OCO) grew from $673 billion in FY 2008 to $696 billion in FY 2010. From FY 2010-13, defense spending declined every year. In FY 2014, the DoD Budget ($595.7 billion) increased for the first time in four years, then fell again in FY 2015. In FY 2016, defense spending climbed back to the FY 14 level but is projected to fall slightly to $594.1 billion in FY 2017. In FY 2018, we can expect to see an 8.9% surge in defense spending and, for the first time since FY 2012, DoD defense spending is projected to surpass the $600 billion mark with funds in the amount of $646.8 billion.

In FY 2018, the total Overseas Congingency Operations (OCO) request is $64.6 billion or about flat compared to the current fiscal year. From a range of $122-195 billion in FY 2008-12, funds for OCO have declined rapidly in recent years - although stable since FY 2015. OCO is expected to drop even further out to FY 2022.

DoD spending on Procurement (Base + OCO) fell from $165.0 billion in FY 2008 to $97.8 billion in FY 2013. In FYs 2014 and 2015, DoD Procurement increased slightly to $100.4 billion (+2.7%) and $102.1 billion (+1.7%), respectively. In FY 2016, procurement increased as much as 16.4% to $118.9 billion. In FY 2017, we can expect procurement to stay flat - followed by 4.8% growth in FY 18.

All figures are by Budget Authority. Source is the official FY 2018 Budget Request from the U.S. Department of Defense.

DoD Spending | Military Personnel, O&M, Procurement, RDT&E, and Military Construction (MILCON)

As a result of large defense budget cuts coupled with sequestration, all types of spending decreased from FY 2012 to FY 2013. Procurement and Military Construction (MILCON) were hit particularly hard and fell 17.4% and 29.0%, respectively.

As illustrated by the chart, by far the largest part of the DoD budget is Operations & Maintenance (O&M). In FY 2018, $273.0 billion in O&M spending is projected, up $23.0 billion (+9.2%) from FY 2017.

In FY 2018, $153.5 billion in funding for Military Personnel (MILPERS) is projected, up $7.8 billion (+5.4%) from FY 2017. In FY 2018, procurement amounts to $125.4 billion, up $5.7 billion (+4.8%) from FY 2017.

Another significant DoD budget item is RDT&E (Research Development Test & Evaluation). In FY 2018, projected spending on RDT&E amounts to $83.7 billion, up a whopping $13.2 billion (+18.1%) from FY 2017.

A relatively small DoD budget item is Military Construction (MILCON). In FY 2018, projected DoD MILCON is $9.0 billion, up $2.4 billion (+35.6%) from FY 2017. Not too long ago, in FY 2009, spending on MILCON was as high as $26.8 billion.


All defense spending figures are by Budget Authority and include Overseas Contingency Operations (OCO) funding.

DoD Defense Spending by Cost Type FY 2008 to FY 2018 - O&M, MILPERS, Procurement, RDT&E, MILCON

DoD Defense Spending in Detail by Military Service | FY2000 - FY2018

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-FY2018

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DoD Total Budget by Military Service FY 2000 to FY 2016, FY2017 and FY 2018

From FY 2004 to FY 2014, the Army received the most DoD funding followed by the Navy and the Air Force. However, in FY 15, the Navy and Air Force surpassed the Army. In FY 2018, the Air Force is projected to receive $183.0 billion, up from $163.6 billion or +11.9% from FY 2017.

In FY 2018, $179.9 billion in total funding is provided for the Navy, up from $168.9 billion or +6.5% from FY 2017.

In FY 2018, the Army will receive $159.4 billion, up from $151.1 billion or +5.5% from FY 2017.

Clearly, while the Army experienced major budget cuts from FY 2011-16, the Navy, USAF and Defense-Wide agencies (e.g. MDA, DARPA, SOCOM and DISA) have been much less impacted.

Figures include Overseas Contingency Operations (OCO). Source: FY 2018 DoD Budget Request.

Procurement Spending by Service | FY2000-FY2018

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DoD Procurement FY 2000 to FY 2016, FY2017 and FY 2018

As shown, the Navy is expected to receive the most DoD procurement funds in FY 2018 closely followed by the Air Force. In FY 2018, $50.3 billion is provided for Navy procurement, up from $47.8 billion or +5.3% from FY 2017.

In FY 2018, the Air Force is projected to receive $47.7 billion, up from $45.6 billion or +4.7% from FY 2017.

In FY 2018, the Army is projected to receive $21.3 billion, up from $19.8 billion or +7.5% from FY 2017.

Clearly, the Army is procuring much fewer vehicles, aircraft, weapons, missiles and other equipment, products and parts compared to the peak in FY 2008 (FY08-FY18: -68.2%).

Figures include Overseas Contingency Operations (OCO). Source: FY 2018 DoD Budget Request.

RDT&E Spending by Service | FY2000-FY2018

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DoD RDT&E FY 2000 to FY 2016, FY2017 and FY 2018

The Air Force is projected to receive by far the most RDT&E (Research Development Test & Evaluation) funds in FY 2018 followed by Defense-Wide activities (mainly MDA Ballistic Missile Defense (BMD) programs), the Navy and the Army. In FY 2018, $35.1 billion is provided for Air Force RDT&E, up from $25.3 billion in FY 2017 or a staggering +38.9%.

In FY 2018, the Navy is projected to receive $18.0 billion, down from $18.4 billion or -2.4% from FY 2017.

In FY 2018, the Army is projected to receive $9.6 billion, up from $7.7 billion or +23.9% from FY 2017.

Clearly, the Air Force is the most "high-tech" branch in the U.S. military.

Figures include Overseas Contingency Operations (OCO). Source: FY 2018 DoD Budget Request.

O&M, Operations & Maintenance | FY2000-FY2018

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DoD O&M FY 2000 to FY 2016, FY2017 and FY 2018

As illustrated, Defense-Wide agencies are projected to receive the most O&M (Operations & Maintenance) funding in FY 2018 followed by the Army, Navy, and Air Force.

In FY 2018, $65.6 billion in O&M funds are provided for the Army, up from $63.8 billion or +2.9% from FY 2017.

In FY 2018, the Navy is projected to receive $61.0 billion, up from $54.8 billion or +11.5% from FY 2017.

In FY 2018, the Air Force is projected to receive $60.3 billion, up from $55.7 billion or +8.3% from FY 2017.

Figures include Overseas Contingency Operations (OCO). Source: FY 2018 DoD Budget Request.

Military Personnel Expenses | FY2000-FY2018

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DoD MILPERS FY 2000 to FY 2016, FY2017 and FY 2018

As illustrated, the Army is expected to receive the most Military Personnel (MILPERS) funds in FY 2018 followed by the Navy, the Air Force, and Defense-Wide agencies.

In FY 2018, $60.9 billion in MILPERS funds are provided for the Army, up from $58.4 billion or +4.3% from FY 2017.

In FY 2018, the Navy is projected to receive $48.1 billion, up from $45.8 billion or +5.0% from FY 2017.

In FY 2018, the Air Force is projected to receive $37.0 billion, up from $34.7 billion or +6.6% from FY 2017.

Clearly, the Army relies heavily on manpower.

Figures include Overseas Contingency Operations (OCO). Source: FY 2018 DoD Budget Request.

MILCON, Military Construction Costs | FY2000-FY2018

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DoD MILCON FY 2000 to FY 2016, FY2017 and FY 2018

As illustrated, Defense-Wide construction is expected to receive the most DoD funds for MILCON (Military Construction) in FY 2018 followed by the Air Force, Navy, and Army.

In FY 2018, the Air Force is projected to receive $2.5 billion, up from $2.0 billion or +27.4% from FY 2017.

In FY 2018, $1.8 billion in MILCON funds are provided for the Navy, up from $1.6 billion or +15.9% from FY 2017.

In FY 2018, the Army is projected to receive $1.4 billion, up from $1.0 billion or +44.4% from FY 2017.

Army MILCON has been hit hard and was down a "whopping" 91.8% from the peak in FY 2009 until the low in FY 2017.

Figures include Overseas Contingency Operations (OCO). Source: FY 2018 DoD Budget Request.


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