Defense spending falls into these categories.

• Author: Stauffer, Anne
• Position: TRENDS - Reprint

The U.S. government spends defense dollars in every state through purchases of military equipment, wages for service members and civilians, pension payments, health care services and grants to states.

But the size and mix of those investments vary substantially by state, so changes in defense spending will affect each state differently. The effects also depend on which programs and operations are increased or cut.

This analysis of defense spending in the states goes beyond contracts and salaries to include retirement payments, nonretirement benefits and grants.

In fiscal year 2015--the most recent year for which complete data are available--federal defense spending totaled $485 billion in the states and the District of Columbia, or $1,510 per person. The amount spent by state per capita ranged from $386 in Michigan to $7,132 in Virginia. The District of Columbia received the highest amount of spending per capita at $10,413.

Anne Stauffer is a project director, Justin Theal is a senior associate and Laura Pontari is an associate with The Pew Charitable Trusts' fiscal federalism initiative. Pew published this article on April 9, 2018.

The Big Five

* Contracts for purchases of goods and services, such as military equipment, information technology, and operations and maintenance programs, accounted for 56 percent of all spending in the states. This was the largest category in 35 states and the District of Columbia, and it made up at least 70 percent of federal defense dollars in Connecticut, Massachusetts, Minnesota...