Defense Spending by State - Fiscal Year 2023
This Executive Summary presents an early, high-level overview of U.S. Department of Defense (DoD) contract, grant, and personnel spending during fiscal year (FY) 2023. State and local officials may use this information to assess a region’s dependence on defense spending and to target assistance to support more resilient communities and companies.
The state-level figures presented in this report are estimates only. The final FY 2023 spending figures are subject to change pending the results of the full data analysis. A final, full report will be released in the fall of 2024.
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Note: In USAspending.gov, DoD prime contracts are associated with one place of performance per contract or subaward as designated by the contractor receiving the funds and do not reflect how the total contracted workload or revenue is distributed. No "manual adjustments" have been made to further allocate this contract spending across locations beyond what is reported in USAspending.gov. Recognizing contracted work may occur at multiple locations across a company, readers are encouraged to contact state and local organizations for more details on Defense supply chain information that is not captured in this report.
Regarding personnel data, the report uses DoD’s Defense Manpower Data Center (DMDC) for gross payroll and personnel counts. DMDC Defense payroll figures represent the total gross pay received by personnel in a county through FY 2023, while personnel counts reflect the number on September 30, 2023. Personnel counts do not include contractors, as contracted personnel are not reported to DMDC.
Previous Reports
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Methodology Change: The Defense Spending by State reports since Fiscal Year 2018 contain one significant change from prior reports. From FY 2013 through FY 2017, the Defense Spending by State report reflected the length of each prime contract in USAspending.gov. Such adjustments were not made for the figures in subsequent reports due to data quality concerns (e.g., some contracts appear to have activity long after the end of the period of performance). The analysis continues, however, to adjust the prime obligations to reflect the year and place of performance of sub-awards.