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DOD Spending, Contract Obligations by State Rose in 2020

October 25, 2021 by Reece Nations

WASHINGTON — The Department of Defense’s Office of Local Defense Community Cooperation released its report on defense spending by state, revealing the department’s contract obligations and payroll spending across all 50 states and Washington, D.C.

The DOD report was published to highlight DOD’s domestic spending figures and contract obligations from fiscal year 2020. The spending report presents a range of findings in order for industry leaders from public and private sectors to assess the department’s investments in “regional innovation, industrial capability and capacity, supply chain resilience, and cultivating a skilled workforce,” according to DOD officials.

Defense contract obligations and payroll spending rose in 2020 by $43 billion across all states over the prior fiscal year. In total, DOD spending reached $593.9 billion or 2.8% of the country’s gross domestic product while being driven by a 9% increase in contract obligations.

Across all states, the top ten recipients of DOD funding were: Texas, Virginia, California, Maryland, Florida, Connecticut, Arizona, Massachusetts, Pennsylvania and Georgia. Although Texas, Virginia and California received the highest dollar amount of DOD spending, the spending in Virginia, Hawaii, and Connecticut had the highest impact on their respective GDP.

From 2019 to 2020, Texas, Arizona and Maryland had the largest increases in DOD spending with substantial contracts going to Lockheed Martin and Raytheon for the production of F-35 aircraft and projectiles along with the building and repair of aquatic military vessels. The top recipients of DOD contracts in 2020 were Lockheed Martin, General Dynamics, Boeing, Raytheon and Northrop Grumman.

Lockheed Martin received the largest sum from the DOD at $72.9 billion, more than $50 billion more than the next highest earning recipient. L3Harris Technologies, Huntington Ingalls, BAE Systems, United Technologies and Humana each received defense spending contracts of under $10 billion.

All of the top ten recipients of DOD contracts were top earners in fiscal year 2019, and L3Harris Technologies, Lockheed Martin and Raytheon received the largest respective funding increases from the previous year. DOD’s analysis was conducted between March and September of this year and was sourced by information from DOD’s Manpower Data Center and the Department of the Treasury.

“This report is presented as an opportunity for governors, local officials, and other leaders to understand the businesses/industries and workers presently supporting our nation’s defense, so they may plan and carry out the necessary transformations and support them to remain competitive, be responsive to our future national security needs, and remain resilient to natural and man-made threats,” Patrick O’Brien, DOD director of the Office of Local Defense Community Cooperation, said in a written statement. 

Reece can be reached at [email protected]

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