In fiscal year 2014, the U.S. Department of Defense awarded nearly $236 billion in federal contract dollars, and the top five defense contractors received about 38% of the money, or $90.4 billion. The top five spent about $58.4 million on lobbying for those federal dollars.
So far in the first half of 2015, the top five contractors have invested $35 million in lobbying for those billions of dollars. Spending is higher this year as the firms try to persuade Congress to eliminate the caps on military spending. The total U.S. defense budget for fiscal year 2015 is $496.1 billion.
According to a report from the Center for Public Integrity and Time magazine, total lobbying expenses by the top 53 defense contractors in the second quarter of 2015 rose 25% from $45.7 million a year ago to $58.5 million. Not all the spending was related to military contracts, but it is not possible to tease out exact dollar amounts because the firms report a single number along with a laundry list of issues on which they lobbied Senators and Representatives.
Lockheed Martin Corp. (NYSE: LMT) spent $3.6 million in the first quarter of 2015 and $3.5 million in the second quarter on lobbying for a combined total of $7.1 million for the first half of 2015. Lockheed was the top recipient of fiscal year 2014 federal contracts, with $32.23 billion, of which just over $25 billion were authorized by the Defense Department. Lockheed had 56 lobbyists working on defense issues in the second quarter of 2015, according to the Center for Public Integrity’s analysis of the federal filings. Lockheed spent about $14.5 million on congressional lobbying in 2014.
ALSO READ: What Does Boeing 787 Dreamliner Cost?
Boeing Co. (NYSE: BA) spent $9.3 million in the second quarter of 2015 and $3.9 million in the first quarter of the year on lobbying, a total of $13.2 million. In fiscal year 2014, the company received $18 billion in defense contracts. One of Boeing’s major concerns during the first half of this year has been the reauthorization of the Export-Import Bank, and those expenses are included in the total, as are other non-defense related lobbying expenses. Boeing had 49 lobbyists looking after its defense interests in the second quarter. Boeing spent about $16.7 million on lobbying 2014.
General Dynamics Corp. (NYSE: GD) spent $2.5 million on lobbying in the first quarter of this year and $2.7 million in the second quarter, for a total of $5.2 million so far in 2015. General Dynamics was awarded $15.35 billion in federal contracts in fiscal 2014, of which $13.63 billion was awarded in defense contracts. The company also paid the most lobbyists — 70 — in the second quarter of 2015. General Dynamics spent about $10.7 million on lobbying in 2014.
Raytheon Co. (NYSE: RTN) paid $1.3 million in first quarter 2015 lobbying expenses and $1.4 million in the second quarter, for a total of $2.7 million in the first half of the year. Raytheon received $11.82 billion in Defense Department contracts in fiscal 2014, from a total of $12.62 in total federal dollars awarded. The company had 37 lobbyists working in the second quarter of this year. Raytheon spent about $6.3 million on lobbying in 2014.
Northrop Grumman Corp. (NYSE: NOC) spend $2.2 million in the first quarter of this year on lobbying and $4.6 million in the second quarter, a total of $6.8 million in the first half of the year. Northrop’s defense contracts in fiscal year 2014 totaled $9.21 billion, out of a total of $10.62 billion in total federal contracts. The company paid 30 lobbyists in the second quarter. In 2014 Northrop spent about $10.2 million on lobbying.
ALSO READ: Will Boeing and Airbus Prosper From Lifting of Iran Sanctions?
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.