The report from the Costs of War Project at Brown University's Watson School of International and Public Affairs and the Quincy Institute for Responsible Statecraft shows that from 2020-24 private firms received $2.4 trillion in Department of Defense contracts, or roughly 54% of DOD's $4.4 trillion in discretionary spending for that five-year period.
The publication highlights that "during those five years, $771 billion in Pentagon contracts went to just five firms: Lockheed Martin ($313 billion), RTX (formerly Raytheon, $145 billion), Boeing ($115 billion), General Dynamics ($116 billion), and Northrop Grumman ($81 billion)."
In a statement about the findings, Stephanie Savell, director of the Costs of War Project, said that "these figures represent a continuing and massive transfer of wealth from taxpayers to fund war and weapons manufacturing."
"This is not an arsenal of democracy—it's an arsenal of profiteering," Savell added. "We should keep the enormous and growing power of the arms industry in mind as we assess the rise of authoritarianism in the U.S. and globally."
The paper points out that "by comparison, the total diplomacy, development, and humanitarian aid budget, excluding military aid, was $356 billion. In other words, the U.S. government invested over twice as much money in five weapons companies as in diplomacy and international assistance."
"Record arms transfers have further boosted the bottom lines of weapons firms," the document details. "These companies have benefited from tens of billions of dollars in military aid to Israel and Ukraine, paid for by U.S. taxpayers. U.S. military aid to Israel was over $18 billion in just the first year following October 2023; military aid to Ukraine totals $65 billion since the Russian invasion in 2022 through 2025."
"Additionally, a surge in foreign-funded arms sales to European allies, paid for by the recipient nations—over $170 billion in 2023 and 2024 alone—have provided additional revenue to arms contractors over and above the funds they receive directly from the Pentagon," the paper adds.
The 23-page report stresses that "annual U.S. military spending has grown significantly this century," as presidents from both major parties have waged a so-called Global War on Terror and the DOD has continuously failed to pass an audit.
Specifically, according to the paper, "the Pentagon's discretionary budget—the annual funding approved by Congress and the large majority of its overall budget—rose from $507 billion in 2000 to $843 billion in 2025 (in constant 2025 dollars), a 66% increase. Including military spending outside the Pentagon—primarily nuclear weapons programs at the Department of Energy, counterterrorism operations at the Federal Bureau of Investigation (FBI), and other military activities officially classified under 'Budget Function 050'— total military spending grew from $531 billion in 2000 to $899 billion in 2025, a 69% increase."
Republicans' One Big Beautiful Bill Act passed earlier this month "adds $156 billion to this year's total, pushing the 2025 military budget to $1.06 trillion," the document notes. "After taking into account this supplemental funding, the U.S. military budget has nearly doubled this century, increasing 99% since 2000."
Noting that "taxpayers are expected to fund a $1 trillion Pentagon budget," Security Policy Reform Institute co-founder Stephen Semler said the paper, which he co-authored, "illustrates what they'll be paying for: a historic redistribution of wealth from the public to private industry.”
Semler produced the report with William Hartung, senior research fellow at the Quincy Institute. Hartung said that "high Pentagon budgets are often justified because the funds are 'for the troops.'"
"But as this paper shows, the majority of the department's budget goes to corporations, money that has as much to do with special interest lobbying as it does with any rational defense planning," he continued. "Much of this funding has been wasted on dysfunctional or overpriced weapons systems and extravagant compensation packages."
In addition to spotlighting how U.S. military budgets funnel billions of dollars to contractors each year, the report shines a light on the various ways the industry influences politics.
"The ongoing influence of the arms industry over Congress operates through tens of millions in campaign contributions and the employment of 950 lobbyists, as of 2024," the publication explains. "Military contractors also shape military policy and lobby to increase military spending by funding think tanks and serving on government commissions."
"Senior officials in government often go easy on major weapons companies so as not to ruin their chances of getting lucrative positions with them upon leaving government service," the report notes. "For its part, the emerging military tech sector has opened a new version of the revolving door—the movement of ex-military officers and senior Pentagon officials, not to arms companies per se, but to the venture capital firms that invest in Silicon Valley arms industry startups."
The paper concludes by arguing that "the U.S. needs stronger congressional and public scrutiny of both current and emerging weapons contractors to avoid wasteful spending and reckless decision-making on issues of war and peace. Profits should not drive policy."
"In particular," it adds, "the role of Silicon Valley startups and the venture capital firms that support them needs to be better understood and debated as the U.S. crafts a new foreign policy strategy that avoids unnecessary wars and prioritizes cooperation over confrontation."
