The United States Department of Defense’s (U.S. DoD’s) procurement budget is part of the broader defence budget, which also includes allocations for operations and maintenance, military personnel, and research, development, test, and evaluation (RDT&E). For Canadian exporters, understanding where this budget is allocated is critical to identifying where your products and services are needed most.
What drives U.S. defence procurement?
Priorities are established by two key documents:
- National Security Strategy (NSS) – Published by the White House and outlines the overall national security priorities of the U.S.
- National Defense Strategy (NDS) – Issued by U.S. DoD and aligns defence priorities with the NSS. It is mandated by law to be released every four years, though updates can occur more frequently.
Yearly U.S. DoD budgets
The official source for the DoD’s annual budget request is the Office of the Under Secretary of War (Comptroller). Each year they publish a Budget Request Overview, Procurement Programs (P-1), and RDT&E Programs (R-1). The U.S. defence budget can be found each year at U.S. DoD Budget Request
Fiscal Year (FY) 2025 Budget Priorities
For Fiscal Year (FY) 2025, the U.S. DoD requested $849.8 billion in discretionary funding. Here are some key allocations in the FY 2025 budget request (subject to change).
Integrated Deterrence: Enabled by combat-credible forces backstopped by a safe, secure, and effective nuclear deterrent:
$49.2 billion
$28.4 billion
For missiles to protect U.S., territories and allies
For long-range attacks across operational domains
Enhance maritime capabilities
Maintain superiority in aerial operations
Bolster ground forces
$33.7 billion
Support space-based defence strategies
$14.5 billion
Cyber defence measures
Campaigning: Day-to-day activities and actions, overseas operations, readiness training and exercises, and continuous engagement and collaboration with allies and partners to advance shared interests.
For readiness and preparedness
For the Pacific Deterrence Initiative (PDI)
$3.9 billion
For European deterrence and countering Russian aggression
$300 million
For Ukraine Security Assistance Initiative (USAI)
Building Enduring Advantages: Innovation and modernization, investments in resilience, and commitment to people.
$143.2 billion
R&D, Test and Evaluation for AI, 5G, Experimentation
$17.2 billion
For Science and Technology
37.3 billion
For facilities investment
Other sources of U.S. DoD budget information
The Army Financial Management & Comptroller (FM&C) function is the branch of the U.S. Army responsible for managing the Army’s money and financial operations. One of its main functions is to plan, develop and justify the Army’s budget to ensure resources align with Army priorities and missions.
The Department of the Navy – Financial Management and Comptroller is the Navy and Marine Corps’ budget headquarters office and is responsible for building, justifying, and executing the Navy’s budget.
The U.S. Air Force budget is managed by the Office of the Assistant Secretary of the Air Force (Financial Management & Comptroller) (SAF/FM) and is responsible for tasks like preparing budget materials and overseeing how appropriate funds are spent for both the Air Force and Space Force.
The Congressional Budget Office (CBO) offers independent analysis of defense spending and budget forecasts. You can search for reports on DoD funding, military spending trends, and cost projections.
The Government Accountability Office (GAO) provides audits and detailed assessments of defense spending efficiency. Look for DoD-related financial reports and budget reviews.
The Congressional Research Service offers in-depth analysis and reports for Congress on defense funding and policy. Look for Defense Primer: The U.S. Defense Budget, Major Defense Acquisition Programs, Defense Budget Overview.
You may have to access these reports via public archives or sites like EveryCRSReport.com.