RESEARCH STARTER

Defense Spending: Overview

Defense spending refers to the financial resources allocated by a nation to support its military and defense operations. In the United States, this spending significantly exceeds that of any other country, primarily covering military training, personnel salaries, healthcare, equipment, and arms. The U.S. defense budget is proposed by the president, negotiated by Congress, and ultimately signed into law, making it a deeply political issue with implications for national security and global stability. Advocates for high defense spending argue that it is essential for protecting citizens and maintaining the U.S.'s role as a global superpower, particularly in the context of threats such as terrorism. Conversely, critics contend that the defense budget is excessively large and could be better allocated to domestic needs, such as infrastructure and education. Historical trends show that U.S. defense spending has fluctuated, often increasing during wartime. Current debates involve differing perspectives on the necessity and efficiency of military expenditures versus alternative priorities. The future of defense spending will likely hinge on global geopolitical developments, domestic political dynamics, and economic conditions.

Full Article

Introduction

The United States spends significantly more money than any other country in the world on its national defense, in large part for military training, payroll, health care, equipment, and arms. The funds allocated for defense spending are proposed by the president of the United States, negotiated and voted on each year by Congress, and, as with other spending provisions, signed into law by the president. Consequently, the defense budget is inherently political in nature, and because of the United States' status as a global superpower, the stakes in the debate are seen as particularly high.

Many believe that the government must take all necessary steps to protect its citizens from threats at home and abroad and that increased military spending is therefore necessary to strengthen the United States' security. On the other hand, some believe the military budget has been bloated and inefficient. They argue that, if there were even a small decrease in the defense budget, those funds could be used for other important endeavors, such as repairing highways and bridges and improving schools.

Understanding the Discussion

Defense budget: The portion of the federal budget allocated to the US Department of Defense, used to pay the salaries of service members of all branches of the military, including the Army, Air Force, Navy, Marine Corps, and Coast Guard. The defense budget also funds military operations and is used to purchase equipment and arms.

Discretionary spending: Government expenditures that are not required by law. Through legislation, Congress can appropriate certain funds for these purposes.

Gross domestic product (GDP): The total dollar value of the goods and services produced within the borders of a country, normally measured over a one-year period.

Inflation adjustment: A mathematical process that allows dollar amounts from different time periods to be compared on equal terms, by compensating for changes in dollar value over time.

History

The United States first began officially allocating money to a defense budget to fund military operations in 1792 and has done so every year since. Defense spending, of course, has always increased dramatically during times of war. Perhaps most notably, during World War II, 85 percent of the US budget went to defense, representing 40 percent of the country's gross domestic product (GDP). In 1960, a time of heightened Cold War tensions, defense spending was 52 percent of the federal budget, though that figure represented only 9 percent of GDP. Since the early twentieth century, the general pattern of US military spending has been steady increases in dollar amounts—accompanied, however, by even steeper increases in GDP. Thus, though approximately 20 percent of the federal budget may be allocated to defense spending, that represents only about 5 percent of the GDP.

In terms of inflation-adjusted dollars, World War II is the only conflict that was more expensive for the United States than the Afghanistan and Iraq wars of the twenty-first century. In 2019 dollars, the US spent $4.7 trillion on World War II, while the Iraq War cost $1 trillion and the Afghanistan War cost $910.5 billion. By contrast, the Vietnam War cost $843.6 billion in 2019 dollars, and the Korean War cost $389.8 billion.

There are vociferous opinions both for and against the United States' high levels of defense spending. For many, it is a simple matter of safety and security. Especially since the terrorist attacks of September 11, 2001, many have advocated for increased spending for military and other counterterrorism efforts. US military involvement in the Middle East consequently increased dramatically over the first decade of the twenty-first century. For defense spending advocates, achievements such as the killing of Taliban leader Osama bin Laden by US special forces in Pakistan in May 2011, and more broadly the fact that there have been no further large-scale terrorist attacks inside the United States since 2001, have justified the high rate of military expenditure. Furthermore, many believe that the United States' status as the sole remaining superpower in the post–Cold War world carries with it a responsibility to take a lead role in ensuring global security and stability. Should US military spending decrease, defense "hawks" fear it would directly affect the country's ability to engage militarily on multiple fronts and to keep its forces armed with the best technology and equipment. Finally, proponents of robust military spending note that defense spending has increased at a slower rate than many areas of domestic spending and that defense spending has accounted for a significantly smaller portion of GDP than it had previously.

Conversely, many believe that such levels of defense spending are both unnecessary and unwise. As with any local, state, or federal expenditure that is tied to taxpayer dollars, some believe defense spending should be subject to strict scrutiny—that any expenditure must be tailored to achieve a specific government objective. They believe other important national priorities, such as education or highway and bridge repair, deserve equal consideration when it comes to allocating taxpayer dollars. In 2010, congressmen Barney Frank, a Democrat, and Ron Paul, a Republican, launched a bipartisan effort to begin an earnest discussion about defense spending. They shared with many a belief that the United States has for too long assumed the role of protector and defender of any country aligned with its interests.

Because the United States' GDP rises almost every year, the dollar amount of military spending can also increase each year without increasing as a percentage of GDP. However, between 2010 and 2015, defense spending gradually decreased due to federal budget cuts and the winding down of engagements in Iraq and Afghanistan. This led to concern from many defense contractors, whose revenues dropped accordingly. The Budget Control Act (BCA) of 2011 also mandated increasing cuts to the defense budget over the following decade—though this reduction still left the United States hundreds of billions of dollars ahead of every other nation on defense spending. Having campaigned, in part, on increasing defense spending, in December 2017, President Donald Trump signed a defense policy bill allocating $700 billion in military spending, exceeding both the binding BCA cap and the president's own proposed budget for the year.

The 2018 defense budget represented almost half of the United States' total discretionary budget, that part of the budget not mandated by law. Total budget outlays in 2018 were $4.1 trillion; the only budget item larger than defense was Social Security, at $982 billion. The defense budget for 2018 accounted for 3.1 percent of GDP. In terms of military spending by dollars, the United States spent far more on its 2018 defense budget—$649 billion—than any other country in the world. The next closest country was China, at $250 billion. That means, with respect to its next closest competitor—a much larger country by population—the United States spent about two and a half times as much on defense. Despite being first in defense spending in terms of dollars, the United States was, as of 2018, ranked third in defense spending as a proportion of GDP. In other words, though the United States spent more on defense than any other country, because it is also wealthy and productive, the percentage of its GDP expended on defense was smaller than that of some other countries. In 2019, Trump, whose administration had consistently raised defense spending, signed a bill authorizing $738 billion for that purpose in fiscal year 2020.

Defense Spending Today

Annual Gallup polls showed persistent fluctuations in public opinion on defense spending over the years. After reporting a record 50 percent of respondents feeling that defense spending was "about right" in 2020, the 2023 poll saw a return to a closer split, with 26 percent of respondents thinking defense spending was too low; 35 percent too high; and 37 percent on target. For the 2022 defense spending budget, legislators on both sides of the aisle advocated for a higher amount than originally proposed by the new administration of President Joe Biden; citing a need to keep up with the military powers of China and Russia specifically, these efforts led to Biden signing an over $768 billion defense spending bill in late 2021. The 2023 defense spending budget signed in late 2022, which included a pay raise for troops as well as funding for military support of Taiwan and Ukraine, the latter of which had been invaded by Russia earlier in the year, was even higher at $858 billion. However, negotiations around the nation's debt ceiling had largely stalled in early 2023, and disagreements over whether to cut or continue growing military spending were a significant part of the delay in brokering a deal until an agreement was ultimately reached and signed into law in June. Debate over the nation's defense spending continued in September of that year when representatives fiercely debated a defense spending bill, which was only approved after leaders agreed to strip it of $300 million in funding for Ukraine. Following Donald Trump’s victory in the 2024 presidential election, the Department of Defense announced more than $500 million in budget cuts. However, in 2026, the Trump administration sought a record $1.5 trillion budget for the Department of Defense.


These essays and any opinions, information, or representations contained therein are the creation of the particular author and do not necessarily reflect the opinion of EBSCO Information Services.


Bibliography

Frohlich, Thomas C., and Alexander Kent. “Countries Spending the Most on the Military.” USA Today, 12 July 2014, www.usatoday.com/story/money/business/2014/07/12/countries-spending-most-on-military/12491639/. Accessed 13 Nov. 2014.

Grisales, Claudia, and Leila Fadel. "White House Seeks Record Defense Budget, but Congress Has Questions about Spending." NPR, 17 Apr. 2026, www.npr.org/2026/04/17/nx-s1-5785117/white-house-seeks-record-defense-budget-but-congress-has-questions-about-spending. Accessed 24 Apr. 2026.

Harrington, John, and Grant Suneson. "What Were the 13 Most Expensive Wars in U.S. History?" USA Today, 13 June 2019, www.usatoday.com/story/money/2019/06/13/cost-of-war-13-most-expensive-wars-in-us-history/39556983/. Accessed 2 Mar. 2020.

Korb, Lawrence J. "Trump's Defense Spending Increase Could Actually Make the U.S. Less Safe." Fortune, 5 Mar. 2017, fortune.com/2017/03/05/donald-trump-defense-spending-military-increase-national-security. Accessed 31 May 2018.

Macias, Amanda. "Trump Signs $738 Billion Defense Bill. Here’s What the Pentagon Is Poised to Get." CNBC, 20 Dec. 2019, www.cnbc.com/2019/12/21/trump-signs-738-billion-defense-bill.html. Accessed 1 June 2023.

McCarthy, Niall. “The Biggest Military Budgets as a Percentage of GDP.” Forbes, 25 June 2015, www.forbes.com/sites/niallmccarthy/2015/06/25/the-biggest-military-budgets-as-a-percentage-of-gdp-infographic-2/?sh=97cf35c4c47f. Accessed 20 Oct. 2015.

"Military and National Defense." Gallup, news.gallup.com/poll/1666/military-national-defense.aspx. Accessed 1 June 2023.

O'Brien, Connor. "Biden Signs $768B Defense Policy Bill That Supersized His Original Pentagon Request." Politico, 27 Dec. 2021, www.politico.com/news/2021/12/27/biden-signs-defense-policy-bill-526171. Accessed 1 June 2023.

Olay, Matthew. "DOD to Cut $580 Million in Spending." US Department of Defense, 20 Mar. 2025, www.defense.gov/News/News-Stories/Article/Article/4130310/dod-to-cut-580-million-in-spending/. Accessed 28 Mar. 2025.

Tankersley, Jim. "Military Spending Emerges as Big Dispute in Debt-Limit Talks." The New York Times, 25 May 2023, www.nytimes.com/2023/05/25/us/politics/debt-limit-military-spending.html. Accessed 1 June 2023.

Taylor, Adam. “Chart: US Defense Spending Still Dwarfs the Rest of the World.” Washington Post, 11 Feb. 2015. Accessed 20 Oct. 2015.

Tian, Nan, et al. "Trends in World Military Expenditure, 2018." SIPRI Fact Sheet, Stockholm International Peace Research Institution, Apr. 2019, sipri.org/sites/default/files/2019-04/fs_1904_milex_2018_0.pdf. Accessed 2 Mar. 2020.

Wells, Jane. “Defense Spending: Pentagon Gravy Train Has Less Gravy.” CNBC, 19 Oct. 2015, www.cnbc.com/2015/10/19/defense-spending-pentagon-gravy-train-has-less-gravy.html. Accessed 20 Oct. 2015.

Zengerle, Patricia. "U.S. Senate Passes Record $858 Billion Defense Act, Sending Bill to Biden." Reuters, 15 Dec. 2022, www.reuters.com/world/us/us-senate-backs-record-858-billion-defense-bill-voting-continues-2022-12-16/. Accessed 1 June 2023.

Full Article

Introduction

The United States spends significantly more money than any other country in the world on its national defense, in large part for military training, payroll, health care, equipment, and arms. The funds allocated for defense spending are proposed by the president of the United States, negotiated and voted on each year by Congress, and, as with other spending provisions, signed into law by the president. Consequently, the defense budget is inherently political in nature, and because of the United States' status as a global superpower, the stakes in the debate are seen as particularly high.

Many believe that the government must take all necessary steps to protect its citizens from threats at home and abroad and that increased military spending is therefore necessary to strengthen the United States' security. On the other hand, some believe the military budget has been bloated and inefficient. They argue that, if there were even a small decrease in the defense budget, those funds could be used for other important endeavors, such as repairing highways and bridges and improving schools.

Understanding the Discussion

Defense budget: The portion of the federal budget allocated to the US Department of Defense, used to pay the salaries of service members of all branches of the military, including the Army, Air Force, Navy, Marine Corps, and Coast Guard. The defense budget also funds military operations and is used to purchase equipment and arms.

Discretionary spending: Government expenditures that are not required by law. Through legislation, Congress can appropriate certain funds for these purposes.

Gross domestic product (GDP): The total dollar value of the goods and services produced within the borders of a country, normally measured over a one-year period.

Inflation adjustment: A mathematical process that allows dollar amounts from different time periods to be compared on equal terms, by compensating for changes in dollar value over time.

History

The United States first began officially allocating money to a defense budget to fund military operations in 1792 and has done so every year since. Defense spending, of course, has always increased dramatically during times of war. Perhaps most notably, during World War II, 85 percent of the US budget went to defense, representing 40 percent of the country's gross domestic product (GDP). In 1960, a time of heightened Cold War tensions, defense spending was 52 percent of the federal budget, though that figure represented only 9 percent of GDP. Since the early twentieth century, the general pattern of US military spending has been steady increases in dollar amounts—accompanied, however, by even steeper increases in GDP. Thus, though approximately 20 percent of the federal budget may be allocated to defense spending, that represents only about 5 percent of the GDP.

In terms of inflation-adjusted dollars, World War II is the only conflict that was more expensive for the United States than the Afghanistan and Iraq wars of the twenty-first century. In 2019 dollars, the US spent $4.7 trillion on World War II, while the Iraq War cost $1 trillion and the Afghanistan War cost $910.5 billion. By contrast, the Vietnam War cost $843.6 billion in 2019 dollars, and the Korean War cost $389.8 billion.

There are vociferous opinions both for and against the United States' high levels of defense spending. For many, it is a simple matter of safety and security. Especially since the terrorist attacks of September 11, 2001, many have advocated for increased spending for military and other counterterrorism efforts. US military involvement in the Middle East consequently increased dramatically over the first decade of the twenty-first century. For defense spending advocates, achievements such as the killing of Taliban leader Osama bin Laden by US special forces in Pakistan in May 2011, and more broadly the fact that there have been no further large-scale terrorist attacks inside the United States since 2001, have justified the high rate of military expenditure. Furthermore, many believe that the United States' status as the sole remaining superpower in the post–Cold War world carries with it a responsibility to take a lead role in ensuring global security and stability. Should US military spending decrease, defense "hawks" fear it would directly affect the country's ability to engage militarily on multiple fronts and to keep its forces armed with the best technology and equipment. Finally, proponents of robust military spending note that defense spending has increased at a slower rate than many areas of domestic spending and that defense spending has accounted for a significantly smaller portion of GDP than it had previously.

Conversely, many believe that such levels of defense spending are both unnecessary and unwise. As with any local, state, or federal expenditure that is tied to taxpayer dollars, some believe defense spending should be subject to strict scrutiny—that any expenditure must be tailored to achieve a specific government objective. They believe other important national priorities, such as education or highway and bridge repair, deserve equal consideration when it comes to allocating taxpayer dollars. In 2010, congressmen Barney Frank, a Democrat, and Ron Paul, a Republican, launched a bipartisan effort to begin an earnest discussion about defense spending. They shared with many a belief that the United States has for too long assumed the role of protector and defender of any country aligned with its interests.

Because the United States' GDP rises almost every year, the dollar amount of military spending can also increase each year without increasing as a percentage of GDP. However, between 2010 and 2015, defense spending gradually decreased due to federal budget cuts and the winding down of engagements in Iraq and Afghanistan. This led to concern from many defense contractors, whose revenues dropped accordingly. The Budget Control Act (BCA) of 2011 also mandated increasing cuts to the defense budget over the following decade—though this reduction still left the United States hundreds of billions of dollars ahead of every other nation on defense spending. Having campaigned, in part, on increasing defense spending, in December 2017, President Donald Trump signed a defense policy bill allocating $700 billion in military spending, exceeding both the binding BCA cap and the president's own proposed budget for the year.

The 2018 defense budget represented almost half of the United States' total discretionary budget, that part of the budget not mandated by law. Total budget outlays in 2018 were $4.1 trillion; the only budget item larger than defense was Social Security, at $982 billion. The defense budget for 2018 accounted for 3.1 percent of GDP. In terms of military spending by dollars, the United States spent far more on its 2018 defense budget—$649 billion—than any other country in the world. The next closest country was China, at $250 billion. That means, with respect to its next closest competitor—a much larger country by population—the United States spent about two and a half times as much on defense. Despite being first in defense spending in terms of dollars, the United States was, as of 2018, ranked third in defense spending as a proportion of GDP. In other words, though the United States spent more on defense than any other country, because it is also wealthy and productive, the percentage of its GDP expended on defense was smaller than that of some other countries. In 2019, Trump, whose administration had consistently raised defense spending, signed a bill authorizing $738 billion for that purpose in fiscal year 2020.

Defense Spending Today

Annual Gallup polls showed persistent fluctuations in public opinion on defense spending over the years. After reporting a record 50 percent of respondents feeling that defense spending was "about right" in 2020, the 2023 poll saw a return to a closer split, with 26 percent of respondents thinking defense spending was too low; 35 percent too high; and 37 percent on target. For the 2022 defense spending budget, legislators on both sides of the aisle advocated for a higher amount than originally proposed by the new administration of President Joe Biden; citing a need to keep up with the military powers of China and Russia specifically, these efforts led to Biden signing an over $768 billion defense spending bill in late 2021. The 2023 defense spending budget signed in late 2022, which included a pay raise for troops as well as funding for military support of Taiwan and Ukraine, the latter of which had been invaded by Russia earlier in the year, was even higher at $858 billion. However, negotiations around the nation's debt ceiling had largely stalled in early 2023, and disagreements over whether to cut or continue growing military spending were a significant part of the delay in brokering a deal until an agreement was ultimately reached and signed into law in June. Debate over the nation's defense spending continued in September of that year when representatives fiercely debated a defense spending bill, which was only approved after leaders agreed to strip it of $300 million in funding for Ukraine. Following Donald Trump’s victory in the 2024 presidential election, the Department of Defense announced more than $500 million in budget cuts. However, in 2026, the Trump administration sought a record $1.5 trillion budget for the Department of Defense.


These essays and any opinions, information, or representations contained therein are the creation of the particular author and do not necessarily reflect the opinion of EBSCO Information Services.


Bibliography

Frohlich, Thomas C., and Alexander Kent. “Countries Spending the Most on the Military.” USA Today, 12 July 2014, www.usatoday.com/story/money/business/2014/07/12/countries-spending-most-on-military/12491639/. Accessed 13 Nov. 2014.

Grisales, Claudia, and Leila Fadel. "White House Seeks Record Defense Budget, but Congress Has Questions about Spending." NPR, 17 Apr. 2026, www.npr.org/2026/04/17/nx-s1-5785117/white-house-seeks-record-defense-budget-but-congress-has-questions-about-spending. Accessed 24 Apr. 2026.

Harrington, John, and Grant Suneson. "What Were the 13 Most Expensive Wars in U.S. History?" USA Today, 13 June 2019, www.usatoday.com/story/money/2019/06/13/cost-of-war-13-most-expensive-wars-in-us-history/39556983/. Accessed 2 Mar. 2020.

Korb, Lawrence J. "Trump's Defense Spending Increase Could Actually Make the U.S. Less Safe." Fortune, 5 Mar. 2017, fortune.com/2017/03/05/donald-trump-defense-spending-military-increase-national-security. Accessed 31 May 2018.

Macias, Amanda. "Trump Signs $738 Billion Defense Bill. Here’s What the Pentagon Is Poised to Get." CNBC, 20 Dec. 2019, www.cnbc.com/2019/12/21/trump-signs-738-billion-defense-bill.html. Accessed 1 June 2023.

McCarthy, Niall. “The Biggest Military Budgets as a Percentage of GDP.” Forbes, 25 June 2015, www.forbes.com/sites/niallmccarthy/2015/06/25/the-biggest-military-budgets-as-a-percentage-of-gdp-infographic-2/?sh=97cf35c4c47f. Accessed 20 Oct. 2015.

"Military and National Defense." Gallup, news.gallup.com/poll/1666/military-national-defense.aspx. Accessed 1 June 2023.

O'Brien, Connor. "Biden Signs $768B Defense Policy Bill That Supersized His Original Pentagon Request." Politico, 27 Dec. 2021, www.politico.com/news/2021/12/27/biden-signs-defense-policy-bill-526171. Accessed 1 June 2023.

Olay, Matthew. "DOD to Cut $580 Million in Spending." US Department of Defense, 20 Mar. 2025, www.defense.gov/News/News-Stories/Article/Article/4130310/dod-to-cut-580-million-in-spending/. Accessed 28 Mar. 2025.

Tankersley, Jim. "Military Spending Emerges as Big Dispute in Debt-Limit Talks." The New York Times, 25 May 2023, www.nytimes.com/2023/05/25/us/politics/debt-limit-military-spending.html. Accessed 1 June 2023.

Taylor, Adam. “Chart: US Defense Spending Still Dwarfs the Rest of the World.” Washington Post, 11 Feb. 2015. Accessed 20 Oct. 2015.

Tian, Nan, et al. "Trends in World Military Expenditure, 2018." SIPRI Fact Sheet, Stockholm International Peace Research Institution, Apr. 2019, sipri.org/sites/default/files/2019-04/fs_1904_milex_2018_0.pdf. Accessed 2 Mar. 2020.

Wells, Jane. “Defense Spending: Pentagon Gravy Train Has Less Gravy.” CNBC, 19 Oct. 2015, www.cnbc.com/2015/10/19/defense-spending-pentagon-gravy-train-has-less-gravy.html. Accessed 20 Oct. 2015.

Zengerle, Patricia. "U.S. Senate Passes Record $858 Billion Defense Act, Sending Bill to Biden." Reuters, 15 Dec. 2022, www.reuters.com/world/us/us-senate-backs-record-858-billion-defense-bill-voting-continues-2022-12-16/. Accessed 1 June 2023.

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