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.

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.

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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

Winning Defense Contracts with White Space Analysis

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Defense market intelligence for stronger bids

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Discover the top 10 defense contractors

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