Estimated U.S. military spending is $934 billion. It covers the period October 1, 2020, through September 30, 2021.﻿﻿ Military spending is the second-largest item in the federal budget after Social Security.

This figure is more than the $705 billion outlined by the Department of Defense alone﻿﻿﻿. The United States has many departments that support its defense. All these departments must be included to get an accurate picture of how much America spends on its military operations.

Key Takeaways The federal budget’s second-largest expense category is the military. Social Security takes the largest share.

The military budget covers the DoD, overseas contingency operations, the VA, Homeland Security, the State Department, and many others that involve national security.

To reduce military costs, the DoD must reduce its civilian workforce, pay and benefits of soldiers, and its military bases around the world.

Military spending has been increasing both the current U.S. debt and budget deficits.

The Four Components of U.S. Military Spending

If you really want to get a handle on what the United States spends on defense, you need to look at four components.

First is the $636 billion base budget for the Department of Defense. Second is $69 billion in overseas contingency operations for DoD to fight the Islamic State group. These two, added together, total the $705 billion budgeted by the DoD.

Third is the total of other agencies that protect our nation. These expenses are $228 billion.﻿﻿ They include the Department of Veterans Affairs ($105 billion). Funding for the VA has been increased by $20 billion over 2018 levels. That's to fund the VA MISSION Act to the VA's health care system. The other agencies are: Homeland Security ($50 billion), the State Department ($44 billion), the National Nuclear Security Administration in the Department of Energy ($20 billion), and the FBI and Cybersecurity in the Department of Justice ($9.8 billion).﻿﻿

Defense Department Base Budget

The defense base budget of $636 billion funds 12 initiatives. First on the list are Nuclear Modernization ($29 billion) and Missile Defense ($20 billion). The new Space Program will cost $18 billion, while Cyberspace protection is budgeted at $10 billion. ﻿﻿

The Air Force will spend $57 billion, including $11 billion for 79 F-35 Joint Strike Fighters and $739 million for five presidential helicopters. The Navy will spend $32 billion and the Army receives $13 billion.

The Defense Department will also spend $21 billion on munitions and $107 billion in new technology research.

Additional funding goes to each department for readiness development. This includes $31 billion to the Army, $48 billion to the Navy, and $37 billion to the Air Force.

Service members will receive a 3% pay raise and an increase in their housing allowance. Family members receive $8 billion for child care, education, and professional development.

DoD will spend $21 billion on building maintenance and construction.

Overseas Contingency Operations

Ironically, the DoD base budget does not include the cost of wars. That falls under Overseas Contingency Operations.﻿﻿ It's budgeted at $69 billion for DoD. Since 2001, the OCO budget has spent $2 trillion to pay for the War on Terror.﻿﻿

Military Spending History

Here's a summary of military spending in billions of dollars since 2003: