Pentagon Awards $2.4 Trillion to Private Defense Firms Since 2020

Between 2020 and 2024, the Pentagon allocated $2.4 trillion, about 54% of its discretionary budget, to private defense contractors, marking a significant transfer of taxpayer funds to the arms industry. This funding primarily benefited five major firms—Lockheed Martin, RTX (formerly Raytheon), Boeing, General Dynamics, and Northrop Grumman—which together received $771 billion. The increase in military spending, propelled by the 2025 budget signed by President Trump pushing annual defense expenditure past $1 trillion, reflects ongoing U.S. priorities in maintaining technological and military superiority amid rising global tensions. Critics argue this spending disproportionately favors arms manufacturing over diplomacy and humanitarian aid, with the latter receiving less than half the funds allocated to these contractors. Experts like Stephanie Savell and William D. Hartung highlight concerns about the influence of the arms industry and question the efficiency and justification of such massive defense budgets. The sustained growth in military expenditure, which nearly doubled since 2000, continues to shape U.S. defense strategy against emerging threats, including the geopolitical rivalry with China and support for allies like Israel and Ukraine.