Department of Defense Spending in US 2025 | Statistics & Facts

Department of Defense Spending in America 2025

The Department of Defense (DoD) represents the largest component of discretionary federal spending in the United States, funding the world’s most powerful military force. Understanding Department of Defense spending trends provides crucial insights into national security priorities, strategic challenges, and the fiscal impact of maintaining military readiness in an increasingly complex global environment. The defense budget pays for military personnel salaries, training and healthcare, weapon systems procurement, research and development, operations and maintenance, and military infrastructure across all six branches of the armed forces.

Department of Defense spending in 2025 continues a long-term trend of substantial investment in military capabilities while facing new fiscal constraints and strategic priorities. From the Army and Navy to the Air Force, Space Force, Marine Corps, and Coast Guard, each service branch competes for resources to modernize equipment, maintain personnel readiness, and respond to emerging threats. As fiscal year 2025 progresses, defense spending decisions reflect complex trade-offs between maintaining current force structure, investing in next-generation technologies, and managing the growing costs of military compensation and benefits for active duty personnel and veterans.

Interesting Facts About Department of Defense Spending in the US 2025

Data Source: Department of Defense Comptroller, Congressional Budget Office, Congressional Research Service, Senate Appropriations Committee

The fiscal year 2025 defense budget reflects both continuity and change in America’s military spending priorities. The Biden Administration initially requested $849.8 billion for the Department of Defense in March 2024, representing an $8 billion increase from FY 2024 levels. However, the enacted funding through the full-year continuing resolution signed in March 2025 provided $831.3 billion in base discretionary budget authority, approximately $18.5 billion less than requested. This reduction required the Department to make difficult trade-offs while still maintaining readiness and supporting military personnel.

The FY 2025 budget operates under spending caps established by the Fiscal Responsibility Act of 2023, which set the total national defense function at $895 billion. This cap includes $850 billion for the Department of Defense, $34 billion for nuclear weapons-related activities of the Department of Energy, and $11 billion for defense activities of other agencies. These constraints forced defense planners to prioritize immediate readiness and personnel needs over some long-term modernization programs.

Military personnel costs represent a growing share of the defense budget, with $183.7 billion allocated in FY 2025 to support approximately 2.1 million active duty and reserve personnel. Congress fully funded a 4.5% pay raise for all servicemembers, with junior enlisted personnel in grades E1-E3 receiving a larger 5.5% increase to address recruitment challenges and improve compensation for the lowest-paid ranks. The budget also includes $251 million for basic needs allowances for military families with household income below 200% of federal poverty guidelines.

Historical Department of Defense Spending in the US 2020-2025

Data Source: Congressional Budget Office, Department of Defense Comptroller, Stockholm International Peace Research Institute

The historical trajectory of Department of Defense spending from 2020 through 2025 reveals the impact of geopolitical events, policy priorities, and fiscal constraints on military budgets. In 2020, defense spending reached $778.4 billion, representing a 6.0% increase from the previous year as the Trump administration prioritized military modernization and readiness. Despite the onset of the COVID-19 pandemic, defense spending remained robust as 3.7% of GDP, though it represented only 11.8% of total federal spending as pandemic relief programs dramatically expanded the overall budget.

Fiscal year 2021 saw continued growth to $806.2 billion, a 3.6% increase reflecting ongoing modernization programs, personnel costs, and operations. Active duty personnel strength climbed to approximately 1,348,000 across all services. Defense spending as a percentage of GDP declined slightly to 3.6% as the economy began recovering from pandemic disruptions. The Biden administration maintained strong defense budgets while also investing heavily in pandemic recovery and domestic programs.

The 2022 fiscal year marked a significant jump in defense spending to $860.7 billion, representing a 6.8% increase driven partly by the Russian invasion of Ukraine in February 2022. The United States significantly increased military assistance to Ukraine while also bolstering NATO presence in Eastern Europe. Active duty strength grew to 1,366,000 personnel. However, defense spending fell to 3.3% of GDP as robust economic growth expanded GDP faster than the defense budget increased.

Fiscal year 2023 showed an unusual decline in reported defense spending to $820.3 billion, though this figure reflects accounting methodologies rather than actual cuts to military capabilities. When measured consistently, defense spending continued modest growth. The defense budget represented 3.0% of GDP and 13.3% of federal spending. Active duty personnel declined to 1,328,000 as recruitment challenges affected all services, with the Army particularly struggling to meet manning targets.

The 2024 and 2025 defense budgets of $841.4 billion and $849.8 billion respectively show modest growth averaging around 2% annually. These increases roughly track inflation, meaning real purchasing power remained relatively flat. Defense spending as a percentage of GDP stabilized around 3.0-3.1%, well below Cold War levels that often exceeded 5-6% of GDP but higher than the post-Cold War lows of 2.9-3.0% in the early 2000s. Active duty personnel strength remained stable near 1.33 million across all services.

Department of Defense Spending by Service Branch in the US 2025

Data Source: Department of Defense Budget Request FY 2025, Congressional Research Service, Department of Defense Personnel Reports

The distribution of Department of Defense spending across service branches in fiscal year 2025 reflects strategic priorities and operational requirements. The Department of the Air Force, which includes both Air Force and Space Force operations, received the largest allocation at $301.1 billion or 35.4% of total DoD spending. This substantial investment supports 502,800 active duty personnel and 177,850 reserve component members while maintaining air superiority capabilities, space operations, and one-third of the nation’s nuclear triad through bomber and intercontinental ballistic missile forces.

The Air Force budget prioritizes modernization of aging aircraft fleets, including continued procurement of F-35 fighters, KC-46 tankers, and B-21 Raider stealth bombers. Research and development investments focus on next-generation air dominance platforms, hypersonic weapons, and advanced battle management systems. The service also funds extensive flying hour programs to maintain pilot proficiency, base operations at installations worldwide, and substantial investments in cyber capabilities and artificial intelligence integration.

The Department of the Navy budget of $292.2 billion represents 34.4% of DoD spending and supports 555,900 active duty personnel plus 156,350 reserve component members across both the Navy and Marine Corps. This allocation funds 11 aircraft carrier strike groups, nuclear-powered attack and ballistic missile submarines, surface combatant ships, and Marine Corps amphibious forces. The Navy faces particular budget pressures from rising shipbuilding costs, with the service requesting approximately $33 billion for ship construction and conversion in FY 2025.

Naval priorities include maintaining forward deployed presence in the Indo-Pacific and European theaters, modernizing the nuclear ballistic missile submarine fleet through the Columbia-class program, and procuring Virginia-class attack submarines and Constellation-class frigates. The budget also supports Naval aviation programs including F/A-18E/F Super Hornets, F-35C carriers variants, P-8 Poseidon maritime patrol aircraft, and MQ-25 unmanned tankers. Marine Corps funding emphasizes Force Design 2030 initiatives, including Stand-In Forces, anti-ship missiles, and unmanned systems.

The Department of the Army received $197.4 billion or 23.2% of DoD spending to support 442,300 active duty soldiers and 500,800 Army National Guard and Reserve personnel. This represents the smallest service budget despite having the second-largest active component and by far the largest reserve component. The Army budget reflects priorities for multi-domain operations, particularly in the Indo-Pacific theater, and continued modernization through eight cross-functional teams addressing future vertical lift, long-range precision fires, next-generation combat vehicles, and network capabilities.

Defense-wide activities consuming $170.9 billion or 20.1% of the budget support functions serving all military services, including the Defense Health Program providing medical care for 9.6 million beneficiaries, the Missile Defense Agency developing and operating ballistic missile defenses, defense intelligence agencies, Special Operations Command, cyber operations, and other joint activities. This category has grown substantially over recent decades as cyber warfare, space operations, missile defense, and intelligence activities expanded beyond traditional service-specific missions.

Military Personnel Compensation Costs in the US 2025

Data Source: Department of Defense Comptroller FY 2025 Budget Materials, Congressional Budget Office Military Personnel Analysis

Military personnel compensation represents the largest single category within the defense budget, totaling $183.7 billion in fiscal year 2025 to support 2.1 million active duty and reserve component servicemembers. Basic pay alone consumes $110.5 billion or 60.2% of personnel costs, with Congress authorizing a 4.5% across-the-board pay increase for all ranks. Junior enlisted personnel in pay grades E1 through E3 received an enhanced 5.5% increase to address recruitment and retention challenges affecting lower-paid ranks and improve the financial stability of military families.

The retired pay accrual of $27.8 billion represents mandatory contributions to the Military Retirement Fund, ensuring future retirement benefits remain funded as servicemembers earn retirement eligibility. This accrual, calculated as a percentage of basic pay, has grown substantially as actuarial assumptions changed and the blended retirement system implemented in 2018 added new obligations. While this accrual doesn’t directly benefit current servicemembers, it prevents unfunded liabilities from accumulating and burdening future defense budgets.

Basic Allowance for Housing (BAH) totaling $24.3 billion provides tax-free compensation to help servicemembers afford housing in their duty locations. BAH rates vary by location, pay grade, and dependent status, with military housing surveys determining appropriate rates for each geographic area. Congress fully funded BAH at 100% of median housing costs in FY 2025 after years of reductions that had pushed servicemember out-of-pocket costs up to 5% of housing expenses. This restoration ensures military families can afford adequate housing without financial hardship.

Healthcare costs for active duty servicemembers through TRICARE Prime total $11.9 billion in direct appropriations, though total military healthcare spending exceeds $50 billion annually when including costs for retirees, dependents, and defense health program operations. Basic Allowance for Subsistence (BAS) provides $3.2 billion for food costs, with enlisted members receiving approximately $460 per month and officers receiving about $280 per month. Special and incentive pays totaling $2.1 billion compensate servicemembers for hazardous duty, aviation operations, submarine duty, medical specialties, and other unique requirements.

Research Development Test & Evaluation Spending in the US 2025

Data Source: Department of Defense RDT&E Budget FY 2025, Congressional Budget Office Long-Term Defense Analysis

Research, Development, Test, and Evaluation (RDT&E) spending totaled approximately $126.9 billion in fiscal year 2025, representing the second-largest appropriation category after military personnel. This investment drives technological superiority and develops next-generation capabilities across all domains. The Air Force received the largest RDT&E allocation at $44.5 billion or 35.1% of total RDT&E funding, supporting development of the B-21 Raider stealth bomber, Next Generation Air Dominance (NGAD) fighter program, hypersonic weapons, directed energy systems, and advanced space capabilities.

Air Force RDT&E priorities emphasize maintaining air superiority against peer competitors through sixth-generation fighter aircraft, autonomous collaborative platforms to support manned aircraft, and advanced sensors and weapons. The service invests heavily in space systems development including next-generation missile warning satellites, GPS III navigation satellites, protected communications systems, and space situational awareness capabilities. Hypersonic weapon development received substantial funding with programs like AGM-183 Air-Launched Rapid Response Weapon (ARRW) and related technologies.

The Navy’s $25.6 billion RDT&E budget supports critical programs including the Columbia-class ballistic missile submarine, which represents the service’s highest priority program to replace aging Ohio-class boats carrying the sea-based nuclear deterrent. Naval aviation RDT&E includes the F/A-XX next-generation fighter, MQ-25 unmanned tanker, and advanced anti-submarine warfare systems. The Navy also invests in directed energy weapons, electromagnetic railguns, unmanned surface and underwater vehicles, and network-centric warfare capabilities.

Army RDT&E spending of $15.8 billion concentrates on eight cross-functional team priorities: long-range precision fires including Extended Range Cannon Artillery and Precision Strike Missile; next-generation combat vehicles replacing Bradley and Abrams platforms; Future Vertical Lift developing helicopters to replace Black Hawk and Apache; network modernization for tactical communications; air and missile defense; soldier lethality improvements; synthetic training environments; and assured positioning, navigation, and timing independent of GPS.

Defense-wide RDT&E of $31.8 billion supports the Missile Defense Agency developing layered missile defense systems, Defense Advanced Research Projects Agency (DARPA) pursuing breakthrough technologies, cyber operations capabilities, artificial intelligence and machine learning applications, microelectronics development through the CHIPS Act, biotechnology research, quantum computing, and other transformational technologies. This category also funds test ranges, advanced computing facilities, and science and technology programs exploring concepts 10-20 years beyond current systems.

Procurement Spending by Category in the US 2025

Data Source: Department of Defense Program Acquisition Costs by Weapon System FY 2025, Senate Appropriations Committee Bill Summary

Procurement spending totaling approximately $159.4 billion in fiscal year 2025 funds acquisition of aircraft, ships, ground vehicles, weapons, ammunition, and other equipment. Aircraft procurement at $58.7 billion represents the largest category, with the F-35 Joint Strike Fighter consuming approximately $13.8 billion for 83 aircraft across Air Force, Navy, and Marine Corps variants. The program continues as the most expensive weapon system acquisition in military history, with total program costs exceeding $400 billion for planned procurement of over 2,400 aircraft.

Other major aircraft purchases include 24 F-15EX fighters for $2.9 billion providing additional capacity and capabilities for homeland defense and other missions; 14 V-22 Osprey tilt-rotor aircraft for $2.1 billion supporting Marine Corps and Special Operations forces; 60 AH-64 Apache attack helicopters for $1.5 billion; and 50 UH-60 Black Hawk utility helicopters for $1.3 billion. The Air Force also procures KC-46 tankers, C-130J tactical transports, and unmanned systems including MQ-9 Reapers.

Shipbuilding and conversion funding of $33.4 billion supports Navy fleet expansion and modernization, though rising ship costs challenge plans to grow the battle force. The budget funds 2 Virginia-class attack submarines at $8.2 billion, 2 Arleigh Burke-class destroyers at $5.4 billion, and 1 Constellation-class frigate at $1.5 billion. The Navy requested 1 Columbia-class ballistic missile submarine but Congress deferred procurement to FY 2026. Fleet auxiliaries, landing ships, and auxiliary vessels round out the shipbuilding program.

Missiles and ammunition procurement of $22.3 billion gained increased priority following the Russian invasion of Ukraine and concerns about ammunition stockpiles. Congress added nearly $1 billion above the request for critical munitions including Joint Air-to-Surface Standoff Missiles (JASSM), Tomahawk cruise missiles, HIMARS rocket artillery, Javelin anti-tank missiles, air defense interceptors, and various smart bombs and precision-guided munitions. The budget also funds munitions production facility expansions to increase industrial base capacity.

Ground vehicle procurement of $8.9 billion includes 5,000 Joint Light Tactical Vehicles (JLTV) replacing Humvees at $1.7 billion, Abrams tank upgrades and new production at $1.4 billion, Stryker vehicle improvements at $900 million, and Mobile Protected Firepower light tanks at $700 million. The Army faces challenges modernizing ground combat vehicles while budgets remain constrained, requiring difficult choices about upgrading current platforms versus developing next-generation replacements.

Operation & Maintenance Spending in the US 2025

Data Source: Department of Defense Operation & Maintenance Budget FY 2025, Congressional Research Service Defense Appropriations Analysis

Operation and Maintenance (O&M) appropriations totaling approximately $283.5 billion in fiscal year 2025 fund the day-to-day operations of the military, including base operations, training exercises, equipment maintenance, fuel, spare parts, civilian personnel salaries, and contractor services. This represents the largest appropriation category and the primary indicator of military readiness. The Army’s $73.2 billion O&M budget supports 22 combat training center rotations at the National Training Center, Joint Readiness Training Center, and Combat Maneuver Training Center, ensuring brigade combat teams maintain proficiency in combined arms operations.

Army O&M funding covers operations at hundreds of installations worldwide, depot-level maintenance of vehicles and equipment, logistics operations, training ammunition, fuel for ground vehicles and aircraft, and salaries for approximately 250,000 civilian employees. The budget includes $461 million for Operation Pathways exercises in the Indo-Pacific, representing more than a 200% increase from the previous year as the service prioritizes regional presence and partnerships. The Army continues adapting training to emphasize multi-domain operations, electronic warfare, and operations against peer competitors.

The Navy’s $71.8 billion O&M budget supports operations of approximately 296 battle force ships including 11 aircraft carriers, 69 submarines, and 92 cruisers and destroyers. Ship operations consume substantial resources with carrier strike groups costing approximately $2.2 billion annually to operate including the carrier, escorts, air wing, and support ships. The budget funds flying hours for 3,700 naval aircraft, depot maintenance creating 17-year backlog of deferred work totaling $17 billion, and operations at installations from Norfolk to San Diego to overseas bases in Japan, Spain, Italy, and Bahrain.

Air Force O&M spending of $68.5 billion funds flying hour programs to maintain pilot proficiency across 5,400 aircraft, with fighter pilots typically receiving 200-220 flying hours annually and transport pilots receiving 300-400 hours. Depot maintenance consumes approximately $23 billion as aging aircraft require increasing maintenance man-hours per flight hour. The service operates 85 major installations worldwide providing power projection, nuclear deterrence, airlift, tanker support, space operations, and cyber warfare capabilities.

Defense-wide O&M of $43.9 billion supports activities serving all services including $13 billion for the Defense Health Program providing medical care at military treatment facilities, $8 billion for U.S. Special Operations Command operating forces in approximately 80 countries, $5 billion for the Defense Logistics Agency managing supply chains, and funding for U.S. Cyber Command, intelligence agencies, missile defense operations, and joint headquarters.

Defense Spending Comparison With Other Nations in 2025

Data Source: Stockholm International Peace Research Institute (SIPRI), World Military Expenditures and Arms Transfers, Department of State

The United States maintains the world’s largest military budget by substantial margins, spending more than the next nine countries combined in 2024. At $916.0 billion (including Department of Energy nuclear programs and veterans benefits), American defense spending represents approximately 32% of global military expenditures totaling nearly $2.9 trillion worldwide. This dominant position reflects strategic commitments spanning multiple regions, technological superiority investments, a global basing network, and substantially higher personnel costs compared to potential adversaries.

China represents the second-largest military spender at an estimated $296.0 billion in 2024, though actual spending may be higher due to opaque budget processes and classifications. China’s defense spending has grown approximately 10% annually over the past two decades, supporting military modernization, naval expansion, space and cyber capabilities, and force projection beyond the country’s borders. The People’s Liberation Army fields 2.035 million active duty personnel, the world’s largest military, while operating at lower cost per soldier than Western militaries.

Russia’s defense spending reached $109.0 billion in 2024, representing a massive 5.9% of GDP as the country sustained operations in Ukraine and rebuilt losses in personnel and equipment. Pre-war Russian military spending averaged $60-70 billion annually, but the invasion of Ukraine in 2022 drove substantial increases in procurement, ammunition production, and force expansion. Russia maintains 1.15 million active duty personnel and extensive nuclear forces despite economic constraints from international sanctions.

NATO allies collectively spent approximately $380 billion on defense in 2024 excluding the United States, with many members accelerating spending following Russia’s invasion of Ukraine. The United Kingdom leads European NATO members at $74.9 billion or 2.3% of GDP, having committed to increase spending to 2.5% of GDP by 2030. Germany dramatically increased defense spending to $66.8 billion including a special €100 billion modernization fund, while France maintains $61.3 billion supporting both NATO commitments and independent strategic capabilities including nuclear forces.

Indo-Pacific allies and partners have also increased defense investments in response to China’s military expansion. Japan boosted defense spending to $54.1 billion with plans to reach 2% of GDP by 2027, marking a historic shift in post-war defense policy. South Korea spends $47.8 billion or 2.7% of GDP maintaining substantial conventional forces to deter North Korea while also developing more capable long-range strike and ballistic missile defense systems. India allocated $83.6 billion for military modernization, though bureaucratic processes and indigenous production challenges sometimes limit effectiveness.

Defense Spending by Presidential Administration in the US 2001-2025

Data Source: Office of Management and Budget Historical Tables, Congressional Budget Office, Defense Department Comptroller

Defense spending patterns across presidential administrations from 2001 through 2025 reflect both partisan priorities and responses to major geopolitical events. The George W. Bush administration (2001-2009) presided over the most dramatic expansion in defense spending since the Reagan buildup of the 1980s. Starting at $316.2 billion in FY 2001, the budget more than doubled to $693.6 billion by FY 2009, representing an extraordinary 11.9% average annual growth rate driven primarily by the September 11 terrorist attacks and subsequent Global War on Terror.

The 9/11 attacks fundamentally transformed American defense policy and spending. Military operations in Afghanistan beginning in October 2001 and Iraq starting in March 2003 required massive supplemental appropriations outside the regular defense budget. At the peak of these conflicts in 2008, the United States deployed over 180,000 troops to Iraq and 30,000 to Afghanistan while also conducting counterterrorism operations globally. Wartime funding included not only operational costs but also rapid procurement of Mine-Resistant Ambush Protected (MRAP) vehicles, increased special operations capabilities, expanded intelligence resources, and growing the Army and Marine Corps by 92,000 personnel.

The Obama administration (2009-2017) initially continued defense spending growth but faced fiscal pressures from the Great Recession and mounting national debt. The Budget Control Act of 2011 imposed sequestration caps that forced defense spending down from $693.6 billion in FY 2009 to $639.9 billion by FY 2017, representing a -1.1% average annual decline. However, these figures include wartime supplemental funding that peaked early in the period, meaning base defense budgets remained more stable even as combat operations in Iraq ended and Afghanistan forces drew down significantly.

The Obama years prioritized ending large-scale ground combat operations while pivoting strategic focus toward the Asia-Pacific region and maintaining technological superiority. The administration reduced Army and Marine Corps end strength by approximately 100,000 personnel from wartime peaks, accepted smaller fleet sizes as shipbuilding budgets constrained growth, but continued investments in fifth-generation fighters, cyber capabilities, and precision strike systems. Sequestration forced difficult choices including reduced flying hours, deferred maintenance, and cancelled modernization programs that created readiness challenges acknowledged by military leaders.

The Trump administration (2017-2021) made defense spending increases a top priority, successfully ending sequestration caps and securing +5.0% average annual growth. Defense spending rose from $639.9 billion in FY 2017 to $778.4 billion by FY 2021, the largest real increase since the Reagan era. The administration focused on rebuilding readiness after sequestration’s impacts, beginning major modernization programs across all services, and responding to great power competition with China and Russia identified in the 2018 National Defense Strategy.

Trump-era increases funded larger procurement accounts with more aircraft, ships, and vehicles; expanded end strength by approximately 20,000 active duty personnel; continued developing advanced systems like the B-21 bomber and Columbia-class submarine; created the Space Force as an independent service; and increased investments in hypersonic weapons, artificial intelligence, and cyber capabilities. However, progress on some priorities like reaching a 355-ship Navy remained constrained by industrial capacity and growing unit costs.

The Biden administration (2021-2025) maintained strong defense budgets despite different policy priorities than its predecessor. Defense spending grew from $778.4 billion in FY 2021 to $849.8 billion requested for FY 2025, averaging +2.2% annual growth. While this growth rate trails the Trump years, it roughly matches inflation meaning real purchasing power remained relatively stable. The administration confronted new challenges including Russia’s invasion of Ukraine requiring massive security assistance, accelerating competition with China in the Indo-Pacific, and inflation driving up costs for personnel, fuel, and weapons systems.

Biden defense budgets prioritized military personnel quality of life with above-inflation pay raises and housing allowance increases; continued modernization of nuclear forces through the Ground Based Strategic Deterrent, B-21 bomber, and Columbia submarine; maintained production of key systems like F-35 fighters and Virginia-class submarines; increased investments in space capabilities and cyber operations; and sustained high operational tempo with forward presence in Europe and the Indo-Pacific. However, the administration faced criticism for real growth rates insufficient to meet all strategic requirements outlined in defense planning documents.

Disclaimer: This research report is compiled from publicly available sources. While reasonable efforts have been made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information. We accept no liability for any errors, omissions, losses, or damages of any kind arising from the use of this report.

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