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 2013


In FY 2013 (October 1, 2012 - September 30, 2013), by Budget Authority, the DoD budget was $585.4 billion dollars. Of this amount, $501.2 billion was Base funding + $84.2 billion for OCO. A closer look reveals a large decrease in the DoD budget of $70.0 billion or -10.7% from FY 2012 to FY 2013. In FY 2013, the DoD budget provided $97.8 billion for Procurement and $63.4 billion for RDT&E. Defense Outlays (the amount of money actually spent during the fiscal year) were $607.8 billion.



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 is $587.1 billion dollars (+$16.3B / +2.9%). Of this amount, $528.5 billion is Base funding + $58.6 billion for OCO. In FY 2016, the DoD budget provides $118.9 billion for Procurement and $70.0 billion for RDT&E. Defense Outlays of $576.3 billion are expected.



FY 2017


In FY 2017 (October 1, 2016 - September 30, 2017), the DoD budget is $595.7 billion dollars (+$10.4B / +1.8%). Of this amount, $531.7 billion is Base funding + $58.8 billion for OCO. In FY 2017, the DoD budget provides $112.3 billion for Procurement and $72.1 billion for RDT&E. Defense Outlays of $586.8 billion are expected.

DoD Spending FY2016-FY2017: Total DoD OCO O&M Procurement RDT&E MILPERS MILCON
+0.6% -42.3% +2.6% -5.6% +4.1% +0.7% -8.9%
DoD Spending FY2015-FY2016: Total DoD OCO O&M Procurement RDT&E MILPERS MILCON
+2.9% -11.0% -0.5% +16.5% +8.5% -0.3% +22.3%
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 2017    (updated April 18, 2016)

DoD Defense Spending from FY 2008 to FY 2015, FY 2016, FY 2017 and FY 2021 - 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, in total, the DoD Budget ($595.7 billion) increased for the first time in four years, however, in FY 2015, defense spending declined to $570.8 billion but is projected to increase to $587.1 billion in FY 2016 and $590.5 billion in FY 2017.

From FY 2018-21, the DoD Budget is expected to grow at a slow pace.

In FY 2017, the total Overseas Congingency Operations (OCO) request is $58.8 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. OCO is expected to drop even further out to FY 2021.

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. A large increase in Procurement of 16.5% to $118.9 billion is expected in FY 2016 - followed by a 5.6% decline in FY 17. Out to FY 2021, slow growth is expected.

All figures are by Budget Authority. Source is the official FY 2017 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 2016, $245.4 billion in O&M spending is projected, down $1.2 billion (-0.5%) from FY 2015.

In FY 2016, $145.4 billion in funding for Military Personnel (MILPERS) is projected, down $0.4 billion (-0.3%) from FY 2015. In FY 2016, procurement amounts to $118.9 billion, up $16.8 billion (+16.5%) from FY 2015.

Another significant DoD budget item is RDT&E (Research Development Test & Evaluation). In FY 2016, projected spending on RDT&E amounts to $69.3 billion, up $5.4 billion (+8.5%) from FY 2015.

A relatively small DoD budget item is Military Construction (MILCON). In FY 2016, projected DoD MILCON is $6.9 billion, up $1.3 billion (+22.3%) from FY 2015. 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. Overseas Contingency Operations (OCO) included from FY 2011-2017.

DoD Defense Spending by Cost Type FY 2008 to FY 2016 - O&M, MILPERS, Procurement, RDT&E, MILCON

U.S. Defense Spending by Top DoD Defense Programs | 5-Year Spending FY2012 - FY2016

In Fiscal Year (FY) 2016 (October 1, 2015 - September 30, 2016), the largest DoD program is the F-35 Lightning II (Joint Strike Fighter). In total, the FY 2016 Budget Request provides $11.01 billion for the F-35 ($9.16 billion procurement + $1.85 billion in RDT&E). In FY 2016, the DoD plans to purchase 57 F-35s (up from 38 in FY 2015, 29 in FY 2014, 29 in FY 2013, and 31 in FY 2012).

The second largest program is the SSN 774 Virginia Class attack submarine with total FY 2016 requested funding in the amount of $5.78 billion ($5.49 billion procurement + $0.29 billion in RDT&E).

The third largest program in FY 2016 is the DDG 51 Arleigh Burke Class Aegis Destroyer with $3.58 billion in requested funding ($3.58 billion procurement + $4.22 million RDT&E) followed by the P-8A Poseidon (a maritime patrol aircraft based on Boeing's 737-700 narrow-body commercial jet) with $3.56 billion ($3.31 billion procurement + $0.25 billion RDT&E).

Other top FY 2016 defense programs are the KC-46A Pegasus Tanker, C-130 Super Hercules, CVN 78 Ford Class Aircraft Carrier, the Littoral Combat Ship, AEGIS BMD incl. SM-3, and the V-22 Osprey.

FY2012 FY2013 FY2014 FY2015(p) FY2016(e)

# Program Name Type User $ Million $ Million $ Million $ Million $ Million

Top-10 DoD Programs and Costs

F-35 Lightning II (JSF)
SSN 774 Virginia Class Submarine
DDG 51 AEGIS Destroyer
P-8A Poseidon
KC-46A New Tanker
C-130 Hercules (all variants)
CVN 78 Ford Class Aircraft Carrier
Littoral Combat Ship
AEGIS BMD & SM-3
V-22 Osprey

Fighter
Submarine
Destroyer
ISR/Patrol
Tanker
Airlift
Carrier
Frigate
Missile
Rotorcraft

JOINT
NAVY
NAVY
NAVY
USAF
JOINT
NAVY
NAVY
MDA
JOINT

9,162.3
4,953.8
2,256.9
2,911.5
818.9
2,506.5
699.1
2,144.1
2,274.0
2,984.9

7,629.8
4,852.0
4,912.0
3,132.6
1,550.3
1,835.9
718.2
2,259.9
2,141.4
2,165.9

7,538.9
6,737.3
2,372.4
3,478.5
1,505.5
2,365.9
1,740.1
2,360.7
2,019.7
2,011.6

8,572.3
6,234.1
3,263.8
2,507.2
2,359.6
2,045.6
1,867.8
2,046.4
2,110.6
1,825.9

11,012.4
5,782.7
3,580.2
3,556.5
3,008.0
2,975.3
2,693.0
2,074.2
1,843.4
1,727.2

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DoD Defense Spending in Detail by Military Service | FY2000 - FY2017

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-FY2017

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DoD Total Budget by Military Service FY 2000 to FY 2015, FY2016 and FY 2017

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 2016, $168.6 billion in total funding is provided for the Navy, up from $161.1 billion or +4.7% from FY 2015.

In FY 2016, the Air Force is projected to receive $161.7 billion, up from $153.2 billion or +5.6% from FY 2015.

In FY 2016, the Army will receive $146.9 billion, down from $148.0 billion or -0.7% from FY 2015.

Clearly, while the Army has experienced major budget cuts over the last five fiscal years (FY11-15), 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 2017 DoD Budget Request.

Procurement Spending by Service | FY2000-FY2017

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DoD Procurement FY 2000 to FY 2015, FY2016 and FY 2017

As shown, the Navy is expected to receive the most DoD procurement funds in FY 2016 closely followed by the Air Force. In FY 2016, $47.9 billion is provided for Navy procurement, up from $41.8 billion or +14.5% from FY 2015.

In FY 2016, the Air Force is projected to receive $45.1 billion, up from $38.4 billion or +17.6% from FY 2015.

In FY 2016, the Army is projected to receive $19.4 billion, up from $15.9 billion or +22.2% from FY 2015.

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-FY16: -71.1%).

Figures include Overseas Contingency Operations (OCO). Source: FY 2017 DoD Budget Request.

RDT&E Spending by Service | FY2000-FY2017

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DoD RDT&E FY 2000 to FY 2015, FY2016 and FY 2017

The Air Force is projected to receive the most RDT&E (Research Development Test & Evaluation) funds in FY 2016 followed by Defense-Wide activities (mainly MDA Ballistic Missile Defense (BMD) programs), the Navy and the Army. In FY 2016, $24.5 billion is provided for Air Force RDT&E, up from $23.6 billion or +4.0% from FY 2015.

In FY 2016, the Navy is projected to receive $18.0 billion, up from $15.9 billion or +13.6% from FY 2015.

In FY 2016, the Army is projected to receive $7.6 billion, up from $6.7 billion or +13.2% from FY 2015.

Clearly, the Air Force is the most "high-tech" branch of the military.

Figures include Overseas Contingency Operations (OCO). Source: FY 2017 DoD Budget Request.

O&M, Operations & Maintenance | FY2000-FY2017

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DoD O&M FY 2000 to FY 2015, FY2016 and FY 2017

As illustrated, Defense-Wide agencies are projected to receive the most O&M (Operations & Maintenance) funding in FY 2016 followed by the Army, the Air Force, and the Navy.

In FY 2016, $60.0 billion in O&M funds are provided for the Army, down from $64.5 billion or -7.0% from FY 2015.

In FY 2016, the Air Force is projected to receive $55.3 billion, up from $55.1 billion or +0.4% from FY 2015.

In FY 2016, the Navy is projected to receive $54.6 billion, up from $54.2 billion or +0.6% from FY 2015.

Figures include Overseas Contingency Operations (OCO). Source: FY 2017 DoD Budget Request.

Military Personnel Expenses | FY2000-FY2017

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DoD MILPERS FY 2000 to FY 2015, FY2016 and FY 2017

As illustrated, the Army is expected to receive the most Military Personnel (MILPERS) funds in FY 2016 followed by the Navy, the Air Force, and Defense-Wide agencies.

In FY 2016, $58.2 billion in MILPERS funds are provided for the Army, down from $59.5 billion or -2.2% from FY 2015.

In FY 2016, the Navy is projected to receive $45.7 billion, down from $45.8 billion or -0.2% from FY 2015.

In FY 2016, the Air Force is projected to receive $34.6 billion, up from $34.4 billion or +0.8% from FY 2015.

Clearly, the Army relies heavily on manpower.

Figures include Overseas Contingency Operations (OCO). Source: FY 2017 DoD Budget Request.

MILCON, Military Construction Costs | FY2000-FY2017

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DoD MILCON FY 2000 to FY 2015, FY2016 and FY 2017

As illustrated, Defense-Wide construction is expected to receive the most DoD funds for MILCON (Military Construction) in FY 2016 followed by the Navy, the Air Force, and the Army.

In FY 2016, $1.9 billion in MILCON funds are provided for the Navy, up from $1.2 billion or +52.9% from FY 2015.

In FY 2016, the Air Force is projected to receive $1.6 billion, up from $1.2 billion or +40.0% from FY 2015.

In FY 2016, the Army is projected to receive $1.1 billion, up from $1.0 billion or +9.9% from FY 2015.

Army MILCON has been hit hard and is down a "whopping" 90.6% from the peak in FY 2009.

Figures include Overseas Contingency Operations (OCO). Source: FY 2017 DoD Budget Request.


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