Lloyd J. Austin III Secretary of Defence | Official website
The Department of Defense's Office of Local Defense Community Cooperation has released its Fiscal Year 2023 report on defense spending by state. The document aims to assist states and communities in understanding the economic impact of defense procurement, personnel, and grant expenditures.
This report includes graphs, maps, and tables that provide insights into total spending figures, categories of contracted goods and services, major defense vendors, numbers and types of defense personnel, and grants awarded by the Department of Defense (DOD). It serves as a tool for public and private leaders to assess how defense investments can be optimized across installations, communities, and the private sector.
"Our National Defense Industrial Strategy makes clear that a robust and resilient industrial base provides the enduring foundation for military advantage," stated Dr. William LaPlante, Under Secretary of Defense for Acquisition and Sustainment. He emphasized the importance of businesses across America in strengthening supply chains through this resource.
Defense spending increased by $50.5 billion in Fiscal Year 2023 compared to the previous year. This rise is attributed to an 8.9 percent increase in DoD contract obligations, a 5 percent increase in payroll spending, and a 7.5 percent increase in grant spending.
In total, DoD contract obligations, payroll spending, and grant awards amounted to $609.2 billion across all states and the District of Columbia. This figure represents 2.2 percent of the country's gross domestic product (GDP), equating to $1,819 per U.S. citizen if distributed evenly.
Texas emerged as the top recipient for overall defense spending with $71.6 billion in Fiscal Year 2023—a significant increase from its previous ranking—followed by Virginia at $68.5 billion and California at $60.8 billion.
When considering impacts on state GDPs from defense spending alone: Virginia ranked highest followed closely behind by Hawaii then Connecticut respectively according Patrick O'Brien Director Office Local Community Cooperation "This report is an enabler for department’s partners better understand develop civilian innovation modernization initiatives continued responsiveness industrial base supply chains national security needs ensuring local infrastructure services sustain installations communities host them military families."
The analysis involved examining data related primarily towards prime- sub-award contracts funded through various sources including DoD's Defense Manpower Data Center USAspending.gov managed U.S Treasury support National Guard Research Development Evaluation activities included within scope too among others highlighted therein findings detailed further supplemental analysis American Samoa Commonwealth Northern Mariana Islands Puerto Rico Guam Virgin Islands United States expected later year OLDCC website offers access FY23 prior reports https://oldcc.gov/dsbs-fy2023
