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
The largest category: day-to-day operations, fuel, supplies, maintenance, contractor services, base operations
Pay, housing, food, healthcare for 1.3M active duty, 800K reserves, and 750K civilians
Buying weapons, ships, aircraft, vehicles, ammunition, and equipment
Next-gen weapons: hypersonics, directed energy, AI, space systems, quantum computing
Building and maintaining bases, family housing, and facilities
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:
The official "defense budget" number
Healthcare, disability, pensions for 18M veterans
CIA ($15B), NSA ($12B), NRO ($18B), NGA, DIA, FBI CT, 11 others
TSA, CBP, ICE, Coast Guard, FEMA (post-9/11 creation)
Warhead production, maintenance, testing, cleanup
Estimated annual interest on military-related borrowing
Foreign military financing, IMET, peacekeeping
Classified space payloads, domestic counterterrorism
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.
F-35 Joint Strike Fighter
In production — plagued by delays and 800+ known deficiencies
Prime contractor: Lockheed Martin
$1.7 trillion
Lifetime
Columbia-class Submarine
Under construction — nuclear ballistic missile sub, replacing Ohio-class
Prime contractor: General Dynamics
$128 billion
12 subs
Sentinel (GBSD) ICBM
85% over initial estimate; under Nunn-McCurdy breach review
Prime contractor: Northrop Grumman
$96+ billion
Program
B-21 Raider Bomber
In development — next-gen stealth bomber, all details classified
Prime contractor: Northrop Grumman
$80+ billion
100 aircraft
Gerald R. Ford Carrier
First deployed 2023 — $2.4B over budget, 4 years late
Prime contractor: HII
$13.3 billion each
Per ship
Virginia-class Submarine
In production — nuclear attack submarine, 2+ years behind schedule
Prime contractor: GD / HII
$3.4 billion each
Per sub
DDG(X) Destroyer
In development — next-gen surface combatant to replace Arleigh Burke
Prime contractor: TBD
$25+ billion
Program
CH-53K King Stallion
Delayed, over budget — heavy-lift helicopter for Marine Corps
Prime contractor: Sikorsky/Lockheed
$36+ billion
Program
IVAS (HoloLens)
AR combat goggles — soldiers report nausea, headaches, neck strain
Prime contractor: Microsoft
$22 billion
10-year
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
FebruaryOMB reviews DOD request, makes cuts. President submits unified budget to Congress. This is the "requested" number.
3. Unfunded Priorities Lists
MarchService chiefs submit separate "wish lists" of items the President cut. Congress uses these to justify adding money back.
4. HASC & SASC Markup
April–JuneHouse and Senate Armed Services Committees review, hold hearings, and mark up their versions. They almost always ADD money.
5. Floor Votes
June–SeptemberFull House and Senate debate and pass their versions. Bipartisan supermajorities are standard — voting against defense is political suicide.
6. Conference Committee
October–DecemberDifferences resolved between House and Senate. In practice, they almost always choose the higher number for contested items.
7. NDAA Signed
December–JanuaryPresident signs the National Defense Authorization Act. The NDAA has been signed every year since 1961 — 63 straight years.
8. Appropriations
Ideally by Oct 1Authorization ≠ 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:
| Year | Requested | Authorized | Delta | Note |
|---|---|---|---|---|
| FY2020 | $718B | $738B | +$20B | Space Force created |
| FY2021 | $740B | $740B | $0 | Trump veto overridden |
| FY2022 | $715B | $770B | +$55B | Largest increase ever ($25B above request) |
| FY2023 | $813B | $858B | +$45B | Inflation + Ukraine used to justify increase |
| FY2024 | $842B | $886B | +$44B | Congress added $44B more than Biden asked |
| FY2025 | $895B | TBD | TBD | Expected 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
Congress requires all federal agencies to produce auditable financial statements (CFO Act)
Pentagon ignores the requirement for 27 years. No other federal agency fails to comply.
First-ever DOD audit attempted with 1,200 auditors — FAILS across all major areas
Second audit — FAILS. Pentagon says it expected to fail.
Third audit — FAILS. COVID provides convenient excuse for delays.
Fourth audit — FAILS. Only 7 of 27 sub-audits pass. $3.5T in assets unaccounted for.
Fifth audit — FAILS. Comptroller says "meaningful progress" despite failing every year.
Sixth audit — FAILS. Still cannot account for $3.8T in assets. 7 of 29 sub-audits pass.
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