Pentagon provided private firms $2.4T to 'fund war, weapons': Report
What's the story
A new report, previewed by The Guardian, has revealed that the United States Department of Defense (DoD) spent most of its discretionary budget on private military contractors between 2020 and 2024. The study, conducted by the Quincy Institute for Responsible Statecraft and Brown University's Costs of War project, found that $2.4 trillion was funneled into these firms during this period. It has been described as a "continuing and massive transfer of wealth from taxpayers to fund war and weapons manufacturing."
Contractor earnings
Military spending projected to cross $1 trillion mark annually
The report also noted that the top five Pentagon contractors—Lockheed Martin, Raytheon, Boeing, General Dynamics, and Northrop Grumman—were awarded $771 billion in contracts during this period. Private firms accounted for nearly 54% of the department's discretionary spending of $4.4 trillion over these years. The study further revealed that military spending is projected to cross the $1 trillion mark annually based on the current budget trajectory.
Spending surge
Military spending nearly doubled since 2000
The report also highlighted that military spending has nearly doubled since 2000, with a 99% increase this century. This increase is attributed to continued spending on countering China as the US's main rival in the 21st century and record foreign arms transfers to Israel and Ukraine. The authors of the report also noted that "the US withdrawal from Afghanistan in September 2021 did not result in a peace dividend."
Budget escalation
Biden, Trump have both escalated military budgets
The report further stated that both Joe Biden and President Donald Trump have continued to escalate military budgets. This is in contrast to Trump's earlier statements about potentially cutting military spending. The spending bill pushed by Trump through Congress included a $157 billion boost for the Pentagon. This growth in spending will increasingly benefit firms in the "military tech" sector, such as SpaceX, Palantir, and Anduril, the report noted.
Budget allocation
'Majority of the department's budget goes to corporations'
William D Hartung, a senior research fellow at the Quincy Institute for Responsible Statecraft and one of the report's authors, said that "high Pentagon budgets are often justified because the funds are 'for the troops.'" However, he added that "the majority of the department's budget goes to corporations." When adjusted for inflation, military spending far exceeds the approximately $356 billion that Congress allocated for US diplomacy, development, and humanitarian aid.