The Defense Economy, State by State
The defense industry isn't spread evenly. A handful of states receive the lion's share of Pentagon contracts, host the most bases, and depend on military spending for their economies. This is how the military-industrial complex keeps Congress voting for war budgets.
π° Biggest Defense Spenders
π― Most Militarized (% of GSP)
States most economically dependent on Pentagon spending.
ποΈ Most Military Installations
πΊοΈ Why It's Not Even
Defense spending is concentrated by design. Powerful senators and representatives steer contracts to their districts, creating a feedback loop: defense jobs create voters who support defense spending, which creates more defense jobs. This is why the F-35 has parts manufactured in 45 states β it's not engineering efficiency, it's political insurance. Every congressional district with a defense plant has a representative who will vote against cutting the program.
All States & Territories
| # | State | DoD Spending | Jobs | Bases | % of GSP |
|---|---|---|---|---|---|
| 1 | CaliforniaCA | $72.1B | 165,400 | 79 | 1.8% |
| 2 | VirginiaVA | $68.4B | 156,200 | 47 | 10.8% |
| 3 | TexasTX | $62.4B | 178,500 | 32 | 2.8% |
| 4 | MarylandMD | $42.1B | 88,600 | 28 | 9.1% |
| 5 | FloridaFL | $35.8B | 82,100 | 49 | 2.5% |
| 6 | ConnecticutCT | $23.4B | 34,500 | 6 | 7.8% |
| 7 | GeorgiaGA | $21.5B | 72,400 | 21 | 3% |
| 8 | MassachusettsMA | $21.3B | 28,700 | 14 | 3.1% |
| 9 | ArizonaAZ | $20.3B | 45,200 | 20 | 4.8% |
| 10 | ColoradoCO | $18.7B | 44,800 | 12 | 4.1% |
| 11 | WashingtonWA | $18.4B | 42,800 | 18 | 2.4% |
| 12 | PennsylvaniaPA | $18.2B | 34,800 | 21 | 2.1% |
| 13 | North CarolinaNC | $18.2B | 79,600 | 14 | 2.7% |
| 14 | AlabamaAL | $16.2B | 37,600 | 30 | 5.8% |
| 15 | New YorkNY | $15.8B | 32,600 | 22 | 0.8% |
| 16 | MissouriMO | $14.8B | 32,400 | 16 | 4% |
| 17 | OhioOH | $12.8B | 28,300 | 15 | 1.6% |
| 18 | HawaiiHI | $12.4B | 51,200 | 33 | 12.3% |
| 19 | New JerseyNJ | $12.4B | 22,100 | 8 | 1.7% |
| 20 | KentuckyKY | $12.3B | 42,100 | 5 | 5.3% |
| 21 | IllinoisIL | $10.2B | 23,400 | 14 | 1.1% |
| 22 | New MexicoNM | $10.2B | 28,400 | 10 | 8.8% |
| 23 | South CarolinaSC | $9.8B | 38,200 | 8 | 3.6% |
| 24 | MississippiMS | $8.4B | 22,300 | 15 | 6.4% |
| 25 | OklahomaOK | $8.4B | 34,200 | 14 | 3.8% |
| 26 | IndianaIN | $7.8B | 21,300 | 13 | 1.8% |
| 27 | MichiganMI | $7.4B | 15,800 | 8 | 1.2% |
| 28 | LouisianaLA | $7.2B | 16,300 | 15 | 2.5% |
| 29 | AlaskaAK | $6.8B | 21,700 | 29 | 10.1% |
| 30 | MaineME | $6.8B | 14,200 | 11 | 8.3% |
| 31 | UtahUT | $6.8B | 21,400 | 8 | 2.8% |
| 32 | TennesseeTN | $6.2B | 14,800 | 16 | 1.4% |
| 33 | NevadaNV | $5.8B | 14,200 | 12 | 2.8% |
| 34 | KansasKS | $5.8B | 26,700 | 9 | 3.2% |
| 35 | MinnesotaMN | $5.2B | 9,800 | 10 | 1.2% |
| 36 | WisconsinWI | $4.2B | 8,200 | 9 | 1.1% |
| 37 | ArkansasAR | $3.8B | 8,900 | 6 | 2.6% |
| 38 | New HampshireNH | $3.8B | 5,800 | 4 | 3.9% |
| 39 | NebraskaNE | $3.2B | 12,100 | 9 | 2.1% |
| 40 | Rhode IslandRI | $3.2B | 8,400 | 8 | 4.6% |
| 41 | North DakotaND | $3.1B | 11,200 | 9 | 4.8% |
| 42 | OregonOR | $2.4B | 4,200 | 10 | 0.8% |
| 43 | MontanaMT | $2.4B | 7,200 | 9 | 3.8% |
| 44 | IdahoID | $2.1B | 7,600 | 10 | 2.1% |
| 45 | IowaIA | $2.1B | 5,200 | 7 | 1% |
| 46 | DelawareDE | $2.1B | 4,800 | 4 | 2.5% |
| 47 | West VirginiaWV | $1.8B | 4,200 | 12 | 2% |
| 48 | South DakotaSD | $1.8B | 6,800 | 6 | 2.8% |
| 49 | WyomingWY | $1.8B | 5,400 | 3 | 3.8% |
| 50 | VermontVT | $1.2B | 3,400 | 6 | 2.8% |
| 51 | Puerto RicoPR | β | β | 20 | β |
| 52 | GuamGU | β | β | 5 | β |
| 53 | Washington DC | β | β | 4 | β |
| 54 | Virgin Islands | β | β | 1 | β |
How the Defense Pork Barrel Works
The geographic distribution of defense spending is not accidental. It's a carefully engineered political strategy that ensures every member of Congress has a financial stake in the defense budget:
- β’ The F-35 has parts in 45 states β not for engineering efficiency, but to create 45 senators who will vote against cutting the program
- β’ Base Realignment and Closure (BRAC) commissions were needed because Congress wouldn't close bases voluntarily β each base is a jobs program for its district
- β’ Defense contractors spread subcontracts across as many districts as possible, then provide those members with campaign contributions
- β’ The revolving door: over 1,700 former senior Pentagon officials now work for defense contractors, and vice versa
The result: every defense budget passes with bipartisan supermajorities, even as other government spending faces fierce partisan opposition. When every district benefits from military spending, no one wants to cut it.
Calculate Your State's War Cost
Want to see what your state's share of $8 trillion in war spending could have bought in local schools, hospitals, and infrastructure? Try our interactive State Impact Calculator.
State Impact Calculator βRelated Pages
Data sources: Department of Defense, Bureau of Economic Analysis, Defense Manpower Data Center. Spending figures in billions USD.
The Political Economy of Defense Spending
π΅ Campaign Contributions
The top 5 defense contractors (Lockheed Martin, Boeing, Raytheon, General Dynamics, Northrop Grumman) contribute millions annually to congressional campaigns. Members on the Armed Services and Appropriations committees receive the most. This creates a direct financial incentive to maintain or increase defense spending.
π The Revolving Door
Over 1,700 former senior Pentagon officials now work for defense contractors, and many contractor executives rotate into Pentagon positions. This revolving door ensures institutional alignment between the military and the industry that profits from military spending.
π Base Closure Politics
The BRAC (Base Realignment and Closure) process was created because Congress wouldn't close unneeded bases voluntarily β every base is a jobs program for its district. There hasn't been a BRAC round since 2005 despite the Pentagon requesting one.
π The Jobs Argument
Defense spending creates jobs β but fewer per dollar than any other category. UMass PERI found $1B in military spending creates ~5,000 jobs vs. 13,000 in education and 9,000 in healthcare. The βjobs argumentβ is the industry's most effective lobbying tool despite the economics.
Methodology: DoD spending includes procurement contracts, payroll, operations, and R&D allocated by state. β% of GSPβ measures defense spending as a share of Gross State Product, indicating economic dependency on military spending. Job figures include active duty military, civilian DoD employees, and direct defense contractor employees but exclude indirect employment (suppliers, services around bases). Base counts include major installations and do not count small recruitment offices or reserve centers.