The U.S. spends by far more on defense than any other country in the world. A majority of those funds remain in the country, propping up state economies with hundreds of billions of dollars every year from the U.S. defense budget. (Here is what the U.S. spent on the military every year since 1970.)
In fiscal year 2020, the Department of Defense spent $593.9 billion on contracting and personnel in all 50 states and the District of Columbia, or approximately $1,803 per U.S. resident and 2.8% of the country’s gross domestic product. The DOD’s budget in that fiscal year was $721.5 billion.
Most of this money, $439.4 billion, went to contracts for products and services, with more than half of that set for supplies and equipment such as aircraft, ships, weapons, and parts. The rest went to research and development and construction. (These are America’s future weapons.)
Out of the $154.6 billion spent on payrolls, 46% went to active-duty military personnel and 40% went to civilians. The rest went to the National Guard and Reserves. At the state level, defense spending varies considerably.
To identify the states where the military spends the most money, 24/7 Wall St. reviewed the Defense Spending by State report for fiscal year 2020 from the DOD. States were ranked by total contract and payroll military spending. Additional data included defense spending as a percent of state GDP and per state resident. Total population figures for each state are five-year estimates from the Census Bureau’s 2020 American Community Survey.
Total contract and payroll military spending ranges from $456.4 million Wyoming, the least populous U.S. state, to $83 billion in Texas, the country’s second most populous state. Defense spending exceeded $60 billion in two other states – California and D.C.-adjacent Virginia. Virginia is also the state with the highest defense spending as a percentage of GDP, at 11.3%.
Defense spending types vary by state. For example, Hawaii, a Pacific outpost in the U.S. sphere of military influence, is among the top 10 states for defense personnel spending but is not a significant recipient of R&D and contracting spending. Missouri, on the other hand, is among the top 10 recipients of defense contract spending but not a major recipient of personal funding. Virginia, a center for both defense contracting and personnel, ranks at or near the top in both categories. (These are 20 companies profiting the most from war.)
Here are the states where the military spends the most money
50. Wyoming
> Total contract and payroll spending: $0.5 billion
> Defense spending as a pct. of state GDP: 1.2% — 10th lowest
> Defense spending per state resident: $784 — 13th lowest
> Total population: 581,348 — the lowest
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49. Idaho
> Total contract and payroll spending: $0.7 billion (tied)
> Defense spending as a pct. of state GDP: 0.8% — 5th lowest
> Defense spending per state resident: $379 — the lowest
> Total population: 1,754,367 — 12th lowest
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48. Montana
> Total contract and payroll spending: $0.7 billion (tied)
> Defense spending as a pct. of state GDP: 1.3% — 13th lowest
> Defense spending per state resident: $655 — 7th lowest
> Total population: 1,061,705 — 8th lowest
47. Delaware
> Total contract and payroll spending: $0.7 billion (tied)
> Defense spending as a pct. of state GDP: 0.8% — 5th lowest
> Defense spending per state resident: $659 — 8th lowest
> Total population: 967,679 — 6th lowest
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46. South Dakota
> Total contract and payroll spending: $0.7 billion (tied)
> Defense spending as a pct. of state GDP: 1.2% — 10th lowest
> Defense spending per state resident: $750 — 12th lowest
> Total population: 879,336 — 5th lowest
45. Vermont
> Total contract and payroll spending: $0.7 billion (tied)
> Defense spending as a pct. of state GDP: 2.1% — 25th lowest
> Defense spending per state resident: $1,133 — 22nd lowest
> Total population: 624,340 — 2nd lowest
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44. North Dakota
> Total contract and payroll spending: $0.9 billion
> Defense spending as a pct. of state GDP: 1.7% — 22nd lowest
> Defense spending per state resident: $1,240 — 25th lowest
> Total population: 760,394 — 4th lowest
43. West Virginia
> Total contract and payroll spending: $1 billion
> Defense spending as a pct. of state GDP: 1.4% — 17th lowest
> Defense spending per state resident: $588 — 6th lowest
> Total population: 1,807,426 — 13th lowest
42. Oregon
> Total contract and payroll spending: $1.6 billion (tied)
> Defense spending as a pct. of state GDP: 0.6% — the lowest
> Defense spending per state resident: $384 — 2nd lowest
> Total population: 4,176,346 — 24th lowest
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41. Arkansas
> Total contract and payroll spending: $1.6 billion (tied)
> Defense spending as a pct. of state GDP: 1.2% — 10th lowest
> Defense spending per state resident: $531 — 5th lowest
> Total population: 3,011,873 — 18th lowest
40. Rhode Island
> Total contract and payroll spending: $1.6 billion (tied)
> Defense spending as a pct. of state GDP: 2.6% — 18th highest
> Defense spending per state resident: $1,519 — 21st highest
> Total population: 1,057,798 — 7th lowest
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39. Nebraska
> Total contract and payroll spending: $1.8 billion
> Defense spending as a pct. of state GDP: 1.4% — 17th lowest
> Defense spending per state resident: $949 — 19th lowest
> Total population: 1,923,826 — 14th lowest
38. Minnesota
> Total contract and payroll spending: $2.9 billion (tied)
> Defense spending as a pct. of state GDP: 0.7% — 3rd lowest
> Defense spending per state resident: $511 — 4th lowest
> Total population: 5,600,166 — 22nd highest
37. Iowa
> Total contract and payroll spending: $2.9 billion (tied)
> Defense spending as a pct. of state GDP: 1.4% — 17th lowest
> Defense spending per state resident: $913 — 15th lowest
> Total population: 3,150,011 — 20th lowest
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36. New Hampshire
> Total contract and payroll spending: $3 billion
> Defense spending as a pct. of state GDP: 3.4% — 15th highest
> Defense spending per state resident: $2,197 — 14th highest
> Total population: 1,355,244 — 10th lowest
35. Nevada
> Total contract and payroll spending: $3.1 billion
> Defense spending as a pct. of state GDP: 1.7% — 22nd lowest
> Defense spending per state resident: $976 — 20th lowest
> Total population: 3,030,281 — 19th lowest
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34. Alaska
> Total contract and payroll spending: $3.3 billion
> Defense spending as a pct. of state GDP: 6.4% — 6th highest
> Defense spending per state resident: $4,577 — 5th highest
> Total population: 736,990 — 3rd lowest
33. Tennessee
> Total contract and payroll spending: $3.4 billion (tied)
> Defense spending as a pct. of state GDP: 0.9% — 6th lowest
> Defense spending per state resident: $497 — 3rd lowest
> Total population: 6,772,268 — 16th highest
32. Kansas
> Total contract and payroll spending: $3.4 billion (tied)
> Defense spending as a pct. of state GDP: 1.9% — 24th lowest
> Defense spending per state resident: $1,175 — 23rd lowest
> Total population: 2,912,619 — 16th lowest
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31. Maine
> Total contract and payroll spending: $3.5 billion
> Defense spending as a pct. of state GDP: 5.2% — 10th highest
> Defense spending per state resident: $2,626 — 11th highest
> Total population: 1,340,825 — 9th lowest
30. New Mexico
> Total contract and payroll spending: $3.6 billion
> Defense spending as a pct. of state GDP: 3.5% — 13th highest
> Defense spending per state resident: $1,707 — 17th highest
> Total population: 2,097,021 — 15th lowest
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29. Louisiana
> Total contract and payroll spending: $4.3 billion
> Defense spending as a pct. of state GDP: 1.7% — 22nd lowest
> Defense spending per state resident: $927 — 16th lowest
> Total population: 4,664,616 — 25th highest
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28. Indiana
> Total contract and payroll spending: $5.4 billion (tied)
> Defense spending as a pct. of state GDP: 1.4% — 17th lowest
> Defense spending per state resident: $802 — 14th lowest
> Total population: 6,696,893 — 17th highest
27. Utah
> Total contract and payroll spending: $5.4 billion (tied)
> Defense spending as a pct. of state GDP: 2.6% — 18th highest
> Defense spending per state resident: $1,653 — 19th highest
> Total population: 3,151,239 — 21st lowest
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26. Wisconsin
> Total contract and payroll spending: $5.5 billion
> Defense spending as a pct. of state GDP: 1.6% — 18th lowest
> Defense spending per state resident: $942 — 17th lowest
> Total population: 5,806,975 — 20th highest
25. South Carolina
> Total contract and payroll spending: $6.1 billion
> Defense spending as a pct. of state GDP: 2.5% — 21st highest
> Defense spending per state resident: $1,177 — 24th lowest
> Total population: 5,091,517 — 23rd highest
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24. Oklahoma
> Total contract and payroll spending: $6.6 billion
> Defense spending as a pct. of state GDP: 3.5% — 13th highest
> Defense spending per state resident: $1,664 — 18th highest
> Total population: 3,949,342 — 23rd lowest
23. Michigan
> Total contract and payroll spending: $6.8 billion
> Defense spending as a pct. of state GDP: 1.3% — 13th lowest
> Defense spending per state resident: $685 — 10th lowest
> Total population: 9,973,907 — 10th highest
22. Mississippi
> Total contract and payroll spending: $7.7 billion (tied)
> Defense spending as a pct. of state GDP: 6.5% — 5th highest
> Defense spending per state resident: $2,607 — 12th highest
> Total population: 2,981,835 — 17th lowest
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21. Hawaii
> Total contract and payroll spending: $7.7 billion (tied)
> Defense spending as a pct. of state GDP: 8.5% — 2nd highest
> Defense spending per state resident: $5,506 — 3rd highest
> Total population: 1,420,074 — 11th lowest
20. New Jersey
> Total contract and payroll spending: $8.4 billion
> Defense spending as a pct. of state GDP: 1.3% — 13th lowest
> Defense spending per state resident: $948 — 18th lowest
> Total population: 8,885,418 — 11th highest
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19. Illinois
> Total contract and payroll spending: $9.3 billion
> Defense spending as a pct. of state GDP: 1.1% — 7th lowest
> Defense spending per state resident: $742 — 11th lowest
> Total population: 12,716,164 — 6th highest
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18. Ohio
> Total contract and payroll spending: $11.6 billion (tied)
> Defense spending as a pct. of state GDP: 1.7% — 22nd lowest
> Defense spending per state resident: $992 — 21st lowest
> Total population: 11,675,275 — 7th highest
17. Colorado
> Total contract and payroll spending: $11.6 billion (tied)
> Defense spending as a pct. of state GDP: 2.9% — 17th highest
> Defense spending per state resident: $1,992 — 15th highest
> Total population: 5,684,926 — 21st highest
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16. Kentucky
> Total contract and payroll spending: $12.6 billion
> Defense spending as a pct. of state GDP: 5.8% — 8th highest
> Defense spending per state resident: $2,804 — 8th highest
> Total population: 4,461,952 — 25th lowest
15. New York
> Total contract and payroll spending: $12.8 billion
> Defense spending as a pct. of state GDP: 0.7% — 3rd lowest
> Defense spending per state resident: $662 — 9th lowest
> Total population: 19,514,849 — 4th highest
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14. North Carolina
> Total contract and payroll spending: $14.4 billion
> Defense spending as a pct. of state GDP: 2.4% — 23rd highest
> Defense spending per state resident: $1,354 — 24th highest
> Total population: 10,386,227 — 9th highest
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13. Washington
> Total contract and payroll spending: $14.6 billion
> Defense spending as a pct. of state GDP: 2.3% — 24th highest
> Defense spending per state resident: $1,900 — 16th highest
> Total population: 7,512,465 — 13th highest
12. Alabama
> Total contract and payroll spending: $14.8 billion
> Defense spending as a pct. of state GDP: 6.4% — 6th highest
> Defense spending per state resident: $3,011 — 6th highest
> Total population: 4,893,186 — 24th highest
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11. Missouri
> Total contract and payroll spending: $15 billion
> Defense spending as a pct. of state GDP: 4.5% — 12th highest
> Defense spending per state resident: $2,437 — 13th highest
> Total population: 6,124,160 — 18th highest
10. Georgia
> Total contract and payroll spending: $15.8 billion
> Defense spending as a pct. of state GDP: 2.5% — 21st highest
> Defense spending per state resident: $1,472 — 22nd highest
> Total population: 10,516,579 — 8th highest
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9. Pennsylvania
> Total contract and payroll spending: $17.8 billion
> Defense spending as a pct. of state GDP: 2.2% — 25th highest
> Defense spending per state resident: $1,391 — 23rd highest
> Total population: 12,794,885 — 5th highest
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8. Massachusetts
> Total contract and payroll spending: $18.6 billion
> Defense spending as a pct. of state GDP: 3.1% — 16th highest
> Defense spending per state resident: $2,700 — 10th highest
> Total population: 6,873,003 — 15th highest
7. Arizona
> Total contract and payroll spending: $20.2 billion
> Defense spending as a pct. of state GDP: 5.3% — 9th highest
> Defense spending per state resident: $2,723 — 9th highest
> Total population: 7,174,064 — 14th highest
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6. Connecticut
> Total contract and payroll spending: $23.6 billion
> Defense spending as a pct. of state GDP: 8.2% — 3rd highest
> Defense spending per state resident: $6,646 — 2nd highest
> Total population: 3,570,549 — 22nd lowest
5. Florida
> Total contract and payroll spending: $29.1 billion
> Defense spending as a pct. of state GDP: 2.6% — 18th highest
> Defense spending per state resident: $1,338 — 25th highest
> Total population: 21,216,924 — 3rd highest
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4. Maryland
> Total contract and payroll spending: $30.4 billion
> Defense spending as a pct. of state GDP: 7.0% — 4th highest
> Defense spending per state resident: $5,023 — 4th highest
> Total population: 6,037,624 — 19th highest
3. California
> Total contract and payroll spending: $61 billion
> Defense spending as a pct. of state GDP: 1.9% — 24th lowest
> Defense spending per state resident: $1,550 — 20th highest
> Total population: 39,346,023 — the highest
2. Virginia
> Total contract and payroll spending: $64.3 billion
> Defense spending as a pct. of state GDP: 11.3% — the highest
> Defense spending per state resident: $7,481 — the highest
> Total population: 8,509,358 — 12th highest
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1. Texas
> Total contract and payroll spending: $83 billion
> Defense spending as a pct. of state GDP: 4.6% — 11th highest
> Defense spending per state resident: $2,828 — 7th highest
> Total population: 28,635,442 — 2nd highest
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