FY23 Defense budget breakdown

Army, Air Force, and Navy-Marine Corps budget and contracting priorities

2022-2023 Defense budget breakdown

President Joe Biden’s proposed $773 billion budget for the Defense Department would increase spending on nuclear modernization as well as research and development, while provoking likely opposition in Congress through proposals to cut back on Army troops and retire aging Navy ships and Air Force planes.

The request for the fiscal year starting Oct. 1 represents 4.2% nominal growth or 1.5% real growth after accounting for inflation compared with the $742 billion final appropriation for this fiscal year.

The budget request reflects plans for costly new defense systems — from upgrading the nation’s aging nuclear weapons to developing new hypersonic weapons. There’s a special emphasis on developing new missile warning satellites and protecting those already in orbit.

Under Biden, the Pentagon has stressed retiring older “legacy platforms” to steer operations and maintenance savings into programs like artificial intelligence and space systems that would be more relevant in a conflict with China.

FY23 Army Budget Request: $177 billion (watch on-demand overview)
FY23 Navy Budget Request: $230 billion (On-demand overview coming soon)
FY23 Air Force Budget Request: $234 billion (watch on-demand overview)

Yearly U.S. Defense spending on contractors

Total defense spending on contractors in the past five years:

2022 – *$344.4 Billion
2021 – $408.8 Billion
2020 – $448.9 Billion
2019 – $404.4 Billion
2018 – $373.5 Billion

*Note: Number will continue to change as DoD reports spending.

DOD budget priorities and opportunities

Explore DOD spending trends, budget activity, and the largest opportunities in the defense market.

ARMY

Fiscal 2023 U.S. Army Budget and Contracting

AIR FORCE

Fiscal 2023 U.S. Air Force Budget and Contracting

NAVY-MARINE CORPS

Fiscal 2023 U.S. Navy-Marine Corps Budget and Contracting

*Coming Soon

How and where DOD spends its contracting dollars

2023 Projected defense spending markets by category management

Current subscribers can explore these insights in our Market Forecast Dashboard.

Drugs and Pharmaceutical Products – $36.8 billion
Aircraft – $32 billion
Systems Development – $25.7 billion
Facility Related Services – $24.5 billion
Technical and Engineering Services (non-IT) – $22.9 billion
Engines, Components & Spt Eq – $22.1 billion
Management Advisory Services – $21.7 billion
Ships & Submarines – $20.6 billion
Construction Related Services – $19.6 billion
Maintenance, Repair and Overhaul – $18.5 billion

Top department of defense contract vehicles for last five years and their spending amount

Current subscribers can access these opportunities in our Contracts Intelligence Tool.

F-35 JSF production lot 12 – $31.3 billion
TRICARE East Region (2016-2022) – $27.6 billion
DLA Direct Delivery Fuels program – $21.3 billion
Virginia-Class Submarines (SSN 802) And (SSN 803) – $19.6 billion
One Acquisition Solution for Integrated Services (OASIS) – $18.4 billion
SeaPort Enhanced – $17.1 billion
One Acquisition Solution for Integrated Services (OASIS) Small Business – $13.3 billion
TRICARE West Region (2016-2022) – $12.7 billion
Vaccine BNT162b2 Production for National Emergency Response to COVID-19 – $11.1 billion
Solutions for Enterprise – Wide Procurement (SEWP) V – $11 billion

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