In 2023, the U.S. military spent approximately $820.3 billion, or about 13.3% of the entire federal budget for that fiscal year. In March 2023, the Department of Defense (DoD) requested $842.0 billion for 2024 — a 2.6% increase.
With the third largest army in the world, with nearly 1.3 million active-duty troops, the U.S. estimates that it spends more than any other nation on its national defense. Between 2014 and 2022, the U.S. spent more than double on defense than all other NATO members combined, totaling 30 nations.
According to the 2022 National Defense Strategy, U.S. military priorities include countering China’s military presence in the Indo-Pacific; deterring strategic attacks against the U.S. and allies; defending against evolving threats such as cyberattacks; and dealing with aggressions from Russia, Iran, and North Korea.
Where Do Military Spending Go?
The annual defense budget is a comprehensive financial plan that supports the strategic objectives of the U.S. military. When the government renews the military budget, it allocates funds across several key areas to support national defense and the operation of the Armed Forces.
The 2024 defense budget clarifies how much funding each military department will receive. Of the five main Armed Forces managed by the DoD, the Air Force receives the largest direct funding at $216.1 billion, followed by the Navy ($202.6 billion), Army ($165.6 billion), Marine Corps ($53.2 billion), and Space Force ($30.1 billion).
The remaining DoD funds are allocated to the National Guard ($32.9 billion), along with specific programs such as the Special Operations Command (US SOCOM), the Missile Defense Agency, and the Defense Health Program.
Has Military Spending Increased Over Time?
After adjusting for inflation, defense spending has risen 62% since 1980, from $506 billion to $820 billion in 2023. Despite the significant increase, the growth in defense spending lags behind total federal expenditures, which rose 175% during the same period (also adjusted for inflation).
Defense spending responds to external pressures — wars and international conflicts — and internal pressures, such as reductions in government spending. The collapse of the Soviet Union and the subsequent end of the Cold War resulted in a substantial decline in defense spending throughout the 1990s; the Global War on Terror and overseas operations in Iraq and Afghanistan from the 2000s caused spending to rise again.
What Percentage of the U.S. Budget Goes to the Military?
In 2023, defense spending accounted for 13.3% of the federal budget. Since 1980, the percentage of federal spending on the military has fluctuated between a peak of 27.9% in 1987 and lows of 11% in 2020 and 2021.
Will Military Spending Increase?
According to the Congressional Budget Office, military spending is expected to increase by 10% by 2038, after adjusting for inflation. This estimate comes from rising costs to compensate military personnel, the operation and maintenance budget, and a slight increase in the cost of new weapon systems.
How Does U.S. Military Spending Compare to Other Countries?
Data from the State Department on military expenditures from 2009 to 2019 shows that the U.S. spent on defense as much as the next 11 highest spending countries combined. China had the second highest expenditure, investing, on average, less than 30% of what the U.S. allocates. India, Russia, Saudi Arabia, and the United Kingdom lag even further behind.
But looking at military spending per capita from 2009 to 2019, Middle Eastern countries occupy six of the top ten positions (the U.S. is in fifth). The United Arab Emirates spends an average of $3,198 per person on the military each year, compared to $2,798 in the U.S.
Source: USAFacts