Loading...

DOD Spending, Contract Obligations by State Rose in 2020

October 25, 2021 by Reece Nations
DOD Spending, Contract Obligations by State Rose in 2020

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 reece@thewellnews.com

In The News

Health

Voting

Defense

May 20, 2022
by Kate Michael
$3B in DOD Budget to Address Climate Change

WASHINGTON — The Defense Department is requesting $3 billion in fiscal year 2023 “to address the effects of climate change,... Read More

WASHINGTON — The Defense Department is requesting $3 billion in fiscal year 2023 “to address the effects of climate change, bolster… installation resiliency and adaptation to climate challenges,” and start to invest in what it believes is a more efficient airplane for the future. At a... Read More

April 6, 2022
by Dan McCue
GOP Congressional Candidate Arrington Sues DoD to Compel Document Release

WASHINGTON — Candidate Katie Arrington, currently hoping to unseat incumbent Rep. Nancy Mace, R-S.C., in the upcoming South Carolina congressional... Read More

WASHINGTON — Candidate Katie Arrington, currently hoping to unseat incumbent Rep. Nancy Mace, R-S.C., in the upcoming South Carolina congressional primary, sued the Defense Department on Tuesday seeking the release of records related to the suspension of her security clearance. Arrington previously ran for the seat... Read More

March 23, 2022
by Tom Ramstack
Defense Analysts Urge Senate to Enhance Latin American Security

WASHINGTON — As the United States turns its attention to bombs falling on Ukraine, defense analysts warned the Senate Wednesday... Read More

WASHINGTON — As the United States turns its attention to bombs falling on Ukraine, defense analysts warned the Senate Wednesday not to overlook emerging security risks in Latin America. Transnational crime, drug gangs as well as growing Russian and Chinese influence in Latin America will only... Read More

Ukraine Urges Calm, Saying Russian Invasion not Imminent

KYIV, Ukraine (AP) — Ukraine's leaders sought to reassure the nation that a feared invasion from neighboring Russia was not... Read More

KYIV, Ukraine (AP) — Ukraine's leaders sought to reassure the nation that a feared invasion from neighboring Russia was not imminent, even as they acknowledged the threat is real and prepared to accept a shipment of American military equipment Tuesday to shore up their defenses. Russia... Read More

Biden Signs $768.2 Billion Defense Spending Bill into Law

WASHINGTON (AP) — President Joe Biden signed the National Defense Authorization Act into law, authorizing $768.2 billion in military spending,... Read More

WASHINGTON (AP) — President Joe Biden signed the National Defense Authorization Act into law, authorizing $768.2 billion in military spending, including a 2.7% pay raise for service members, for 2022. The NDAA authorizes a 5% increase in military spending, and is the product of intense negotiations... Read More

December 15, 2021
by Dan McCue
Senate Approves Defense Authorization Bill

WASHINGTON — The Senate on Wednesday afternoon passed the National Defense Authorization Act, ending a prolonged standoff on amendments, many... Read More

WASHINGTON — The Senate on Wednesday afternoon passed the National Defense Authorization Act, ending a prolonged standoff on amendments, many of which were jettisoned from the final bill. In the end the vote was a decidedly bipartisan 89-10. The bill will now go to President Biden’s... Read More

News From The Well