Defense discretionary spending is $822 billion in projected outlays for FY 2024, or 13% of total outlays. It is funded by the Defense Appropriations bill and other bills that fund military construction and atomic energy.[1]
U.S. defense spending has increased significantly over the last two decades. In FY 2023, alone, defense appropriations increased by 10% while projected outlays are increasing by seven percent.[2] However, evaluating the extent of defense increases depends on which metrics are used:
- Defense discretionary outlays have increased from $295 billion in FY 2000 to an estimated $884 billion in FY 2024—a 58% increase after adjusting for inflation;
- However, as a percentage of the economy (measured as Gross Domestic Product or “GDP”) defense outlays averaged 4.2 percent of GDP between 1974 and 2023, but is projected to be far less, 3.0 percent of GDP, in FY 2024;
- Nevertheless, compared to other countries, U.S. defense spending is equivalent to more than the defense budgets of the next nine countries combined (in order of spending—China, $298b; India, $81b; Saudi Arabia, $73b; Russia, $72b; the UK, $70b; Germany, $58b; France, $57b; Japan, $54b; and S.Korea, $50b.
|
Defense Spending Category |
FY 2024 Outlays |
| Operations and Maintenance (O&M): including equipment operating costs; recruiting and training; base operations; facilities maintenance; utilities; civilian labor; travel; logistics services; and defense health programs. | 323 |
| Military Personnel, Active and Reserve Forces: pay and allowances of officers, enlisted personnel, cadets and midshipmen, permanent change of station travel, inactive duty, and active duty training, retirement and health benefits, enlistment, reenlistment and affiliation bonuses, special and incentive pay. | 170 |
| Procurement: acquisition of aircraft, ships, combat and support vehicles, satellites and their launch vehicles, weapons, munitions, and all capital equipment. | 148 |
| Research, Development, Testing and Evaluation (RDT&E): basic research for all branches of the military, as well as the development of prototype weapons and equipment. | 137 |
| Atomic Energy Defense Activities: responsibilities for U.S. nuclear weapons are shared by the Departments of Energy and Defense. | 33 |
| Military Construction and Family Housing | 16 |
| Defense-related spending at other Departments | 12 |
| Note: Most of the roughly $100 billion in national intelligence and military intelligence spending is included within the accounts of the defense budget, most likely concentrated in O&M and Personnel.[3] | |
[1] The Military Construction-Veterans Affairs appropriations bill and the Energy-Water appropriations bill.
[2] Cong. Budget Off., The Budget and Economic Outlook: 2024 to 2034, By the Numbers (2024); Statement by Senate Appropriations Committee Ranking Member Richard Shelby (R-Ala., (Dec. 12, 2022), https://www.appropriations.senate.gov/news/shelby-senate-passes-fy23-omnibus-package.