U.S. DoD Defense Spending

For additional information about defense spending, military fleets, DoD Contracts and more, please visit our Procurement Section or the Defense Database.

Welcome to the Defense Spending Section: Official FY2014 data now available!

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Top-100 DoD Contractors List:
Top-100 DoD Contractors FY 2012

Note: Page now updated with latest FY2014 budget data.

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.

Sequestration Information

In early January 2013, Congress reached an agreement that averted the fiscal cliff. The deal, however, did not resolve the issue of spending cuts. As Congress failed to reach an agreement, automatic spending cuts known as sequester went into effect on March 1, 2013. The sequester entails FY2013 federal spending cuts in the amount of $85 billion of which $46 billion will be made in defense spending. The DoD has warned that sequestration may lead to large-scale layoffs and furloughs. In particular, members of the DoD civilian workforce are at risk. The U.S. is the largest defense market in the world and the aerospace & defense industry depends heavily upon U.S. government contracts. Major cuts in defense spending will therefore have a significant impact on the revenues and profits of most major aerospace & defense OEMs and their suppliers. On Tuesday March 26, 2013, President Obama signed into law a government-funding bill that ends the 2013 budget fight and locks in $85 billion in spending cuts.

FY 2012

In FY2012, (fiscal year starting October 1, 2011) the DoD spent a total of $655.4 billion dollars - $533.1 billion Base and $122.3 billion for Overseas Contingency Operations (OCO).

FY 2013

In FY2013, (fiscal year starting October 1, 2012) the DoD is projected to spend a total of $627.2 billion dollars (sequestration not included in this number or the figures below). Of this amount, $538.7 billion is Base Request and $88.5 billion is for Overseas Contingency Operations (OCO). A closer look reveals a DoD budget reduction of $28.2 billion or -4.3% from FY2012 to FY2013. This decrease is mainly due to a large drop in OCO funding of $33.8 billion or -27.6%. The Base Request is actually going up $5.7 billion or +1.1%. Please note that sequestration may reduce total DoD spending by as much as $46 billion in FY2013. The impact of sequestration is not included in the numbers above.

FY 2014

Turning to the budget for FY2014, (fiscal year starting October 1, 2013) the DoD is projected to spend a total of $621.6 billion dollars. Of this amount, $533.1 billion is Base Request and $88.5 billion is for Overseas Contingency Operations (OCO). A closer look reveals a DoD budget reduction of $5.7 billion or -0.9% from FY2012 to FY2013. This decrease is mainly due to a 1.1% decrease in Base funding.

Changes to DoD Defense Programs

The FY2013 DoD Budget included the termination of six major programs to save $9.6 billion from FY2013-FY2017. The programs terminated were the RQ-4 Global Hawk Block 30, C-27J Spartan Joint Cargo Aircraft, HMMWV recap, the Defense Weather Satellite System (DWSS), C-130 Avionics Modernization Program (AMP), and the Medium Range Maritime UAS. On top of that, the DoD has restructured the following programs to save a total of $41.8 billion from FY2013-FY2017: F-35 Lightning II, Ground Combat Vehicle (GCV), Family of Medium Tactical Vehicles (FMTV), Ohio Class Replacement SSBN(X), and the Joint Air to Ground Missile (JAGM).

In FY2014, terminations include the Missile Defense Agency's Precision Tracking Space System (PTSS) development program and the Air Force Expeditionary Combat Support System (ECSS) development effort. Also, the DoD plans to restructure the Standard Missile SM-3 Block IIB program.

Looking at the chart (left), you can see that total DoD defense spending (Base + OCO) grew from $673 billion in FY2008 to $696 billion in FY2010 and is expected to decrease until FY2014. Total DoD spending is projected to decrease by 0.9% from $627.2 billion in FY2013 to $621.6 billion in FY2014 (fiscal year starting October 1, 2013). For FY2013, the total OCO request is $88.5 billion. The impact of sequestration is not included in the FY2013 numbers above and could reduce total DoD spending by as much as $46 billion in FY2013.

DoD procurement spending (Base + OCO) decreased from $165.0 billion in FY2008 to $135.8 billion in FY2010. Procurement spending is projected to decrease by 5.4% from $115.1 billion in FY2013 to $108.9 billion (this figure is uncertain as no OCO procurement figures have been published) in FY2014.

In FY2013, total U.S. defense spending is expected to be $654.3 billion. The DoD gets $627.2 billion, while other departments/agencies receive $27.1 billion.

OCO = Overseas Contingency Operations

As a direct result of the large defense budget cuts announced by the Obama administration, all types of spending will decrease from FY2011 to FY2012. In FY2013 and FY2014, further defense budget cuts are expected.

As illustrated by the chart (left), the largest share of the DoD budget is for Operations & Maintenance (O&M) activities. For FY2013, O&M expenses are budgeted at $263.3 billion down 8.2% from FY2012.

Procurement spending was higher than Military Personnel expenses in FY2008, however, that has changed. For FY2013, Military Personnel expenses are budgeted at $160.8 billion up 1.5% from FY2012. For FY2013, DoD spending on Procurement is budgeted at $115.1 billion down 2.7% from FY2012.

Another major DoD expense is RDT&E (Research Development Test & Evaluation). For FY2013, DoD spending on RDT&E is budgeted at $73.0 billion up 1.3% from FY2012.

Another DoD expense is MILCON, which is a term for Military Construction. In FY2013, DoD spending on MILCON is budgeted at $11.4 billion up 0.2% from FY2013.


The defense spending figures include Overseas Contingency Operations (OCO).

In Fiscal Year (FY) 2013 (October 1, 2012 - September 30, 2013), Classified DoD Programs, when viewed as an aggregate, receive by far the most funds. In total, classified programs are account for $35.17 billion ($18.82 billion procurement + $16.34 billion in RDT&E funds). The F-35 Lightning II (Joint Strike Fighter) receives direct total spending of $9.17 billion and, in FY2013, the DoD procures 29 F-35s at a cost of $6.47 billion (31 and 35 aircraft procured in FY11 and FY12), while the program accounts for another $2.70 billion in RDT&E funds.

Other top DoD programs are the SSN 774 Virginia Class Submarine, DDG 51 AEGIS Destroyer, P-8A Poseidon, the Littoral Combat Ship, F/A-18E/F Super Hornet, V-22 Osprey, and KC-46A New Tanker.

Note that our data may not in all instances match the numbers in the official DoD Major Acquisition Program Data Book, mainly due to the fact that we include spending on modifications (to provide a more accurate view of how much is spent on each system).

Top 10 DoD Programs and Costs

Classified DoD Programs
F-35 Lightning II (JSF)
SSN-774 Virginia Class Submarine
DDG-51 AEGIS Destroyer
P-8A Poseidon
Littoral Combat Ship
F/A-18E/F Super Hornet
V-22 Osprey
CVN Refueling Overhauls
KC-46A New Tanker

Other
Aircraft
Ship
Ship
Aircraft
Ship
Aircraft
Aircraft
Ship
Aircraft

JOINT
JOINT
NAVY
NAVY
NAVY
NAVY
NAVY
JOINT
NAVY
USAF

1
2
3
4
5
6
7
8
9
10

Aircraft Programs Missile Programs Space Programs Shipbuilding Programs Vehicle and C4ISR Programs

Note: Click on a program below to view full profile

PROC* = Procurement in % of total FY2013 DoD spending on the program
RDT&E* = Research Expenditures in % of total FY2013 DoD spending on the program

As illustrated, the Army receives the most DoD funding followed by the Navy and the Air Force. For FY2013, the Army is projected to receive $183.9 billion down from $203.6 billion or -9.7% from FY2012.

For FY2013, the Navy is projected to receive $171.2 billion down from $173.9 billion or -1.5% from FY2012.

For FY2013, the Air Force is budgeted to receive $159.6 billion down from $162.8 billion or -2.0% from FY2012.

Clearly, while the Army has experienced massive budget cuts over the last three fiscal years, the Navy and USAF have been much less impacted.

The numbers include Overseas Contingency Operations (OCO).

As illustrated, the Navy is expected to receive the most DoD procurement funds in FY2013 followed by the Air Force and the Army. For FY2013, the Navy is projected to receive $45.5 billion down from $46.0 billion or
-1.2% from FY2012.

For FY2013, the Air Force is projected to receive $39.9 billion down from $40.5 billion or -1.5% from FY2012.

For FY2013, the Army is projected to receive $24.5 billion down from $24.9 billion or -1.7% from FY2012.

Clearly, the Army is procuring much fewer vehicles, aircraft, parts and services compared to the peak in FY2008 (FY2008-FY2013: -63.6%).

The numbers include Overseas Contingency Operations (OCO).

The Air Force will receive the most DoD RDT&E (Research Development Test & Evaluation) funds in FY2013 followed by Defense-Wide activities (e.g. DARPA and MDA programs), the Navy and the Army. For FY2013, the Air Force is projected to receive $26.7 billion up from $26.4 billion or
+1.2% from FY2012.

For FY2013, the Navy is projected to receive $17.9 billion up from $17.7 billion or +1.4% from FY2012.

For FY2013, the Army is projected to receive $8.8 billion up from $8.4 billion or +5.6% from FY2012 - in this year's defense budget.

Clearly, the Air Force is the "High-Tech" branch of the military.

The numbers include Overseas Contingency Operations (OCO).

As illustrated, the Army will receive the most DoD O&M (Operations & Maintenance) funds in FY2013 followed by Defense-Wide activities, the Navy and the Air Force. For FY2013, the Army is projected to receive $76.4 billion down from $96.6 billion or
-20.9% from FY2012.

For FY2013, the Navy is projected to receive $55.9 billion down from $58.2 billion or -4.0% from FY2012.

For FY2013, the Air Force is projected to receive $54.5 billion down from $57.6 billion or -5.3% from FY2012.

The defense spending figures include Overseas Contingency Operations (OCO).

As illustrated, the Army will receive the most DoD Military Personnel (MILPERS) funds in FY2013 followed by the Navy the Air Force. There are no defense-wide MILPERS expenses budgeted in either FY2012 or FY2013.

For FY2013, the Army is projected to receive $69.3 billion up from $68.6 billion or +0.9% from FY2012.

For FY2013, the Navy is projected to receive $48.4 billion up from $47.7 billion or +1.4% from FY2012.

For FY2013, the Air Force is projected to receive $36.3 billion down from $36.6 billion or -0.9% from FY2012.

Clearly, the Army relies heavily on manpower.

The numbers include Overseas Contingency Operations (OCO).

As illustrated, the Army is expected to receive the most DoD funds for MILCON (Military Construction) in FY2013 followed by Defense-Wide activities, the Navy and USAF.

In FY2013, the Army is projected to receive $4.2 billion up from $4.0 billion or +5.1% from FY2012.

In FY2013, the Navy is projected to receive $2.2 billion down from $2.4 billion or -8.1% from FY2012.

In FY2013, the Air Force is projected to receive $1.5 billion up from $1.4 billion or +2.4% from FY2012.

The numbers include Overseas Contingency Operations (OCO).