Defense Spending
The portion of the federal budget dedicated to national defense — including military personnel, weapons systems, operations, and maintenance — totaling over $850 billion annually.
How It Works
Defense spending is the largest category of discretionary spending. It flows through the Department of Defense budget and several related agencies. The top defense contractors — Lockheed Martin, RTX (Raytheon), Boeing, General Dynamics, and Northrop Grumman — receive tens of billions each in annual contract awards. Defense spending covers a wide range: from aircraft carriers and fighter jets to IT services, healthcare for service members, and base construction. The defense budget has grown significantly since 2001 due to ongoing military operations and modernization programs.
Related Terms
- Discretionary Spending — Federal spending that Congress controls through annual appropriations — covering defense, education, transportation, and other agency budgets.
- Federal Contract — A legally binding agreement between the U.S. government and a private company to provide goods or services — from fighter jets to IT consulting.
- NAICS Code — The North American Industry Classification System code — a 6-digit number that classifies a business by the type of economic activity it performs, used to determine small business size standards.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.