How Is the Defense Budget Allocated?
The majority of the overall defense budget, $776 billion in FY2023, was spent by the Department of Defense (DoD) on military activities. The remaining $43 billion was spent on defense-related activities carried out by other agencies, such as the Department of Energy and the Federal Bureau of Investigation.
DoD funding for military activities support a broad range of activities. The largest category, operation and maintenance, cost $318 billion in 2023. It covers the cost of military operations such as training and planning, maintenance of equipment, and most of the military healthcare system (separate from outlays made by the Department of Veterans Affairs). The second largest category, military personnel, supports pay and retirement benefits for service members and cost $184 billion in 2023.
Several smaller categories accounted for the rest of DoD spending. Procurement of weapons and systems cost $142 billion in 2023 and $122 billion was spent on research and development of weapons and equipment. The military also spent over $10 billion on the construction and management of military facilities and $1 billion on family housing.
