Ranked: The Top 10 U.S. States by Defense Spending
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Key Takeaways
- Texas received $71.6 billion in U.S. Department of Defense (DoD) spending in 2023—an $8.9 billion jump from the previous year.
- Virginia follows next, at $68.5 billion, with the military industry contributing 19% to the state’s GDP covering more than 872,000 direct and indirect jobs.
- Ranking in third is California, bolstered by Silicon Valley’s decades-long relationship with the defense sector.
DoD contracts hit $609.2 billion across U.S. states in 2023, up $50.5 billion over the year.
Overall, Texas outranked Virginia as the leading recipient of Department of Defense spending—largely concentrated in the Dallas-Fort Worth area. Over the past decade, Texas’ share of defense spending has increased by 10% while Virginia’s has remained fairly stable.
This graphic shows the top 10 U.S. states receiving defense spending, based on data from the U.S. Department of Defense.
Texas Receives the Biggest DoD Contracts
Here are America’s leading states for defense contracts and related spending in fiscal year 2023:
| Rank | State | Defense Spending FY 2023 |
|---|---|---|
| 1 | Texas | $71.6B |
| 2 | Virginia | $68.5B |
| 3 | California | $60.8B |
| 4 | Florida | $32.2B |
| 5 | Maryland | $27.8B |
| 6 | Connecticut | $25.3B |
| 7 | Pennsylvania | $21.8B |
| 8 | Arizona | $17.0B |
| 9 | Massachusetts | $16.8B |
| 10 | Washington | $15.5B |
With $71.6 billion in spending, Texas ranks first overall, fueled by an $8.9 billion annual increase.
Lockheed Martin, one of the world’s largest arms companies, operates several factories in Texas, including an F-35 assembly plant. Meanwhile, RTX Corporation and General Dynamics run facilities across the state.
Following in second place is Virginia, home to 247,214 Department of Defense personnel. Strikingly, more than 228,000 acres of land are managed by the Department of Defense across the state. Along with the Pentagon and Marine Corps Base Quantico, it houses the world’s largest naval base.
In third spot is California, with $60.8 billion in spending. With more than 30 military installations and 161,000 active-duty military personnel, California plays a critical role in America’s military and national security operations. Together, defense and security activities contributed 5.1% to California’s GDP, equal to an estimated $196.7 billion in 2023.
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To learn more about this topic from a global perspective, check out this graphic on military spending around the world.
