The Defense Budget

FY2024: $886B. More than the next 10 countries combined. Never passed a full audit. Congress gives the Pentagon more than it asks for — every single year. When all military-related spending is counted, the true national security budget exceeds $1.5T.

$886B

FY2024 DOD Budget

0

Audits Passed (Ever)

$2.4B

Cost Per Day

$1.5T

True National Security Cost

78

Countries with CT operations

$1.7T

F-35 Lifetime Cost

Where Every Dollar Goes

Operations & Maintenance$290B (33%)

The largest category: day-to-day operations, fuel, supplies, maintenance, contractor services, base operations

Military Personnel$170B (19%)

Pay, housing, food, healthcare for 1.3M active duty, 800K reserves, and 750K civilians

Procurement$150B (17%)

Buying weapons, ships, aircraft, vehicles, ammunition, and equipment

Research & Development$140B (16%)

Next-gen weapons: hypersonics, directed energy, AI, space systems, quantum computing

Military Construction$15B (2%)

Building and maintaining bases, family housing, and facilities

Other / Classified$121B (13%)

Black budget, revolving funds, defense-wide activities, classified programs

Budget by Service Branch

Department of the Army

485,000 active

$185B

21% of DOD budget

Ground forces, armor, artillery, helicopters, missile defense

Department of the Navy (incl. Marines)

347,000 Navy + 177,000 Marines

$222B

25% of DOD budget

Aircraft carriers, submarines, amphibious warfare, Marine Corps

Department of the Air Force (incl. Space Force)

325,000 AF + 16,000 SF

$217B

24% of DOD budget

Fighter jets, bombers, ICBMs, satellites, GPS, space domain

Defense-Wide / Agencies

Various

$145B

16% of DOD budget

DARPA, NSA, DIA, MDA, DISA, SOCOM, and other defense agencies

Defense Health Program

9.6M beneficiaries

$38B

4% of DOD budget

TRICARE military healthcare system

Classified / Black Budget

Unknown

$79B

9% of DOD budget

Estimated classified programs across all branches + intelligence

💡 Did You Know?

The “Operations & Maintenance” category — the largest at $290 billion — includes contractor services that now exceed spending on military personnel. The Pentagon employs roughly as many private contractors as active-duty troops. These contractors cost 2–3x more per person than uniformed service members. The top 5 defense contractors received more from the Pentagon in FY2024 than the budgets of the State Department, EPA, and NASA combined.

The Total National Security Budget: $1.5 Trillion

The official “defense budget” of $886 billion is only the DOD portion. The true cost of America's national security apparatus spans multiple agencies and includes costs the Pentagon would prefer you not think about:

DOD Base Budget

The official "defense budget" number

$886B
Veterans Affairs

Healthcare, disability, pensions for 18M veterans

$325B
Intelligence Community

CIA ($15B), NSA ($12B), NRO ($18B), NGA, DIA, FBI CT, 11 others

$90B
Homeland Security

TSA, CBP, ICE, Coast Guard, FEMA (post-9/11 creation)

$62B
Nuclear Weapons (DOE/NNSA)

Warhead production, maintenance, testing, cleanup

$50B
Interest on War Debt

Estimated annual interest on military-related borrowing

$100B
State Dept Military Programs

Foreign military financing, IMET, peacekeeping

$18B
Other (NASA defense, FBI CT, etc.)

Classified space payloads, domestic counterterrorism

$10B
TOTAL National Security Spending$1.5T

The Intelligence Community: $90+ Billion in the Shadows

The US intelligence community comprises 18 agencies with a combined budget estimated at over $90 billion per year. This includes:

  • CIA: ~$15 billion — Covert operations, human intelligence (HUMINT), paramilitary
  • NSA: ~$12 billion — Signals intelligence (SIGINT), mass surveillance, cyber operations
  • NRO: ~$18 billion — Spy satellites and overhead reconnaissance
  • NGA: ~$5 billion — Geospatial intelligence, mapping, imagery analysis
  • DIA: ~$4 billion — Military intelligence analysis
  • FBI (National Security): ~$3 billion — Domestic counterterrorism and counterintelligence
  • 12 Other Agencies: ~$33 billion — Including service intelligence branches, Treasury intelligence, DEA intelligence, etc.

The intelligence budget was first officially disclosed in 2007 ($43.5 billion for the National Intelligence Program alone). The Snowden leaks in 2013 revealed the “black budget” in detail for the first time, showing $52.6 billion across 16 agencies. By 2024, the NIP alone exceeded $72 billion, with the Military Intelligence Program adding another $25+ billion. Combined intelligence spending has roughly doubled since 2007 — while the threats it monitors have, by most measures, not doubled.

Nuclear Weapons: The DOE's $50 Billion Shadow Military Budget

America's nuclear weapons are not maintained by the Pentagon. They are maintained by the Department of Energy's National Nuclear Security Administration (NNSA), which operates a vast complex of weapons laboratories, production facilities, and testing sites. The NNSA budget for FY2024 is approximately $23 billion, with additional nuclear delivery system costs (missiles, submarines, bombers) in the DOD budget totaling another $27+ billion.

The US maintains approximately 5,500 nuclear warheads (1,700 deployed, 3,800 in reserve or awaiting dismantlement). The current modernization plan — replacing every leg of the nuclear triad (ICBMs, submarine-launched missiles, and bombers) simultaneously — is estimated to cost $1.5–2 trillion over 30 years. The Sentinel ICBM program alone has already exceeded its budget by 85%, triggering a Nunn-McCurdy breach review.

Veterans Affairs: $325 Billion — The Cost of Breaking People

The VA budget of $325 billion per year is the deferred cost of war — healthcare, disability compensation, and support for 18 million living veterans. This is not counted in the “defense budget” but it is unmistakably a military cost. Without wars, the VA would be a fraction of its current size.

The VA currently processes 2 million+ disability claims per year. Average wait time: 150+ days. The backlog periodically exceeds 500,000 pending claims. The PACT Act (2022) expanded eligibility for 3.5 million burn pit-exposed veterans, adding an estimated $280 billion in new costs over 10 years. The Brown University Costs of War Project estimates total future veteran care costs from post-9/11 wars will reach $2.5T through 2050.

Top 10 Most Expensive Weapons Programs

The defense budget is dominated by enormous weapons programs, many of which are over budget, behind schedule, and plagued by performance issues. Yet they continue because the jobs and contracts are distributed across enough congressional districts to make cancellation politically impossible.

#1

F-35 Joint Strike Fighter

In production — plagued by delays and 800+ known deficiencies

Prime contractor: Lockheed Martin

$1.7 trillion

Lifetime

#2

Columbia-class Submarine

Under construction — nuclear ballistic missile sub, replacing Ohio-class

Prime contractor: General Dynamics

$128 billion

12 subs

#3

Sentinel (GBSD) ICBM

85% over initial estimate; under Nunn-McCurdy breach review

Prime contractor: Northrop Grumman

$96+ billion

Program

#4

B-21 Raider Bomber

In development — next-gen stealth bomber, all details classified

Prime contractor: Northrop Grumman

$80+ billion

100 aircraft

#5

Gerald R. Ford Carrier

First deployed 2023 — $2.4B over budget, 4 years late

Prime contractor: HII

$13.3 billion each

Per ship

#6

Virginia-class Submarine

In production — nuclear attack submarine, 2+ years behind schedule

Prime contractor: GD / HII

$3.4 billion each

Per sub

#7

DDG(X) Destroyer

In development — next-gen surface combatant to replace Arleigh Burke

Prime contractor: TBD

$25+ billion

Program

#8

CH-53K King Stallion

Delayed, over budget — heavy-lift helicopter for Marine Corps

Prime contractor: Sikorsky/Lockheed

$36+ billion

Program

#9

IVAS (HoloLens)

AR combat goggles — soldiers report nausea, headaches, neck strain

Prime contractor: Microsoft

$22 billion

10-year

#10

MQ-25 Stingray

Carrier-based autonomous refueling drone — behind schedule

Prime contractor: Boeing

$13+ billion

Program

The F-35: A Case Study in Failure

The F-35 Joint Strike Fighter is the most expensive weapons program in human history — a projected $1.7T over its lifetime. Originally planned to cost $233 billion for development and procurement, the program has nearly tripled in cost while delivering an aircraft plagued by over 800 known deficiencies.

The F-35 cannot fly in lightning storms. Its gun doesn't shoot straight. Its stealth coating blisters in the sun. It costs $36,000 per flight hour to operate — compared to $22,000 for the F-16 it was meant to replace. Its ejection seat can kill lighter pilots. Its logistics system (ALIS/ODIN) doesn't work properly. Mission-capable rates hover around 55% — meaning nearly half the fleet is grounded at any given time.

And yet production continues, because the program supports 254,000 jobs across 45 states — making it politically untouchable. This is the genius of modern defense contracting: distribute the work across enough districts that no member of Congress can afford to vote against it.

“The F-35 is a piece of — I can't say it in public. It's a disaster. The program should have been killed years ago.”
— Dan Grazier, Project on Government Oversight, 2023

How the Defense Budget Process Works (And Why It Only Goes Up)

Understanding why the defense budget always grows requires understanding the process that produces it. The system is designed — deliberately — to produce growth:

1. DOD Internal Review

Jan–Aug (18 months before FY)

Services submit wish lists. OSD reviews. PPBE (Planning, Programming, Budgeting, and Execution) process produces the Pentagon's request.

2. President's Budget

February

OMB reviews DOD request, makes cuts. President submits unified budget to Congress. This is the "requested" number.

3. Unfunded Priorities Lists

March

Service chiefs submit separate "wish lists" of items the President cut. Congress uses these to justify adding money back.

4. HASC & SASC Markup

April–June

House and Senate Armed Services Committees review, hold hearings, and mark up their versions. They almost always ADD money.

5. Floor Votes

June–September

Full House and Senate debate and pass their versions. Bipartisan supermajorities are standard — voting against defense is political suicide.

6. Conference Committee

October–December

Differences resolved between House and Senate. In practice, they almost always choose the higher number for contested items.

7. NDAA Signed

December–January

President signs the National Defense Authorization Act. The NDAA has been signed every year since 1961 — 63 straight years.

8. Appropriations

Ideally by Oct 1

Authorization ≠ appropriation. Actual funding comes in defense appropriations bills. Often delayed by CRs (continuing resolutions).

The NDAA: 63 Years and Counting

The National Defense Authorization Act (NDAA) has been signed into law every year since 1961 — 63 consecutive years without a single miss. No other piece of legislation has this record. The NDAA authorizes (but does not appropriate) defense spending and sets policy for the DOD. It is the legislative vehicle through which Congress shapes military policy.

The NDAA also serves as a “must-pass” bill that both parties use to attach unrelated provisions. In recent years, NDAAs have included sanctions, trade provisions, construction projects, and social policy amendments. The “defense bill” has become a general-purpose legislative vehicle precisely because it is the one bill that will always pass.

Recent NDAA history shows the relentless upward trajectory:

YearRequestedAuthorizedDeltaNote
FY2020$718B$738B+$20BSpace Force created
FY2021$740B$740B$0Trump veto overridden
FY2022$715B$770B+$55BLargest increase ever ($25B above request)
FY2023$813B$858B+$45BInflation + Ukraine used to justify increase
FY2024$842B$886B+$44BCongress added $44B more than Biden asked
FY2025$895BTBDTBDExpected to exceed $900B

Continuing Resolutions: Government by Autopilot

When Congress fails to pass appropriations bills by October 1 (the start of the fiscal year), the government operates under a continuing resolution (CR) — which freezes spending at the prior year's level. This happens routinely:

  • Over the past 14 fiscal years, DOD operated under CRs for 1,400+ days
  • CRs prevent new programs from starting and cost an estimated $5–10 billion per year in inefficiency
  • Despite constant complaints about CRs, they actually benefit the defense establishment by locking in current spending levels and preventing any cuts
  • The “crisis” of a CR is used to justify even larger budgets when the appropriations bill finally passes

OCO: The War Slush Fund

For years, the Pentagon maintained a separate funding stream called Overseas Contingency Operations (OCO) — ostensibly for war costs that couldn't be predicted. In practice, OCO became a slush fund that allowed the Pentagon to circumvent budget caps.

Because OCO was classified as “emergency” spending, it didn't count against the Budget Control Act spending caps established in 2011. The Pentagon routinely stuffed non-war base budget items into OCO to get around the limits. At its peak, OCO added $160+ billion per year on top of the base budget — essentially a second defense budget with no caps and minimal oversight.

OCO was formally eliminated in FY2022 when the spending caps expired. The Pentagon simply absorbed those costs into the base budget — which promptly surged past $800 billion. The slush fund disappeared; the spending didn't.

The Audit Catastrophe

The Pentagon is the only federal agency that has never passed a comprehensive financial audit — despite being required by law since 1990.

The Audit Timeline

1990

Congress requires all federal agencies to produce auditable financial statements (CFO Act)

1990–2017

Pentagon ignores the requirement for 27 years. No other federal agency fails to comply.

2018

First-ever DOD audit attempted with 1,200 auditors — FAILS across all major areas

2019

Second audit — FAILS. Pentagon says it expected to fail.

2020

Third audit — FAILS. COVID provides convenient excuse for delays.

2021

Fourth audit — FAILS. Only 7 of 27 sub-audits pass. $3.5T in assets unaccounted for.

2022

Fifth audit — FAILS. Comptroller says "meaningful progress" despite failing every year.

2023

Sixth audit — FAILS. Still cannot account for $3.8T in assets. 7 of 29 sub-audits pass.

2024

Seventh audit — FAILS. Pentagon says "full clean audit" may take until 2028 at earliest.

The Pentagon manages $3.8 trillion in assets and cannot account for a significant portion of them. It doesn't know how many buildings it has. It doesn't know where much of its equipment is. Its financial systems are a patchwork of 2,300+ software systems, many of which cannot communicate with each other and some of which date to the 1960s.

💡 Did You Know?

In 2016, the DOD Inspector General found that the Army made $6.5 trillion in accounting adjustments in a single year — more than the entire federal budget. These weren't actual transactions but journal voucher adjustments to make the books “balance” — essentially, plug numbers with no supporting documentation. If a private company did this, the SEC would shut it down.

Comparison to Other National Priorities

The $886B defense budget dwarfs every other discretionary investment the federal government makes:

  • Education: $79B (11× less than defense)
  • Veterans Affairs: $325B (healthcare for the people defense breaks)
  • Transportation: $27B (32× less)
  • EPA: $12.1B (73× less)
  • NASA: $25.4B (35× less)
  • NIH (medical research): $47B (19× less)
  • FEMA: $29B (31× less)
  • State Department: $58B (15× less)
  • National Science Foundation: $9.5B (93× less)
  • CDC: $9.2B (96× less)

America spends 73 times more on weapons than on protecting the environment. 19 times more on the military than on curing disease. 96 times more on war than on the CDC. 11 times more on the Pentagon than on education. These are not accidents — they are choices. And they are made every year, by both parties, with overwhelming majorities.

The Black Budget: What We Can't See

An estimated $79+ billion of the defense budget goes to classified programs that are invisible to the public and to most members of Congress. Only members of the intelligence and armed services committees are briefed on these programs — and even they may not know the full scope.

Classified programs include:

  • Special Access Programs (SAPs): The most secret military programs, accessible to only a handful of people. The B-21 Raider was a SAP before its existence was acknowledged.
  • Waived SAPs: Programs so secret that even congressional oversight committees are not fully briefed. Their existence is known to perhaps 20 people in the entire government.
  • Intelligence programs: The National Intelligence Program ($72B+) and Military Intelligence Program ($25B+) are partially classified.
  • Cyber operations: Offensive cyber capabilities, which the US has acknowledged using but whose budgets remain classified.
“Every gun that is made, every warship launched, every rocket fired signifies, in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed.”
— Dwight D. Eisenhower, 1953
“The Pentagon cannot account for trillions. If any private company failed an audit this badly, its executives would be in prison.”
— Senator Bernie Sanders
“Of all the enemies to public liberty, war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes.”
— James Madison, 1795