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The Department of Defense (DoD) operates more than 420 military installations in the 50 states, the District of Columbia, Guam and Puerto Rico.
These installations sustain the presence of U.S. forces at home and abroad. Installations located within the United States and its territories are used to train and deploy troops, maintain weapons systems and care for the wounded. They also support military service members and families by providing housing, health care, childcare and on-base education.
The DoD contributes billions of dollars each year to state economies through the operation of military installations.
This spending helps sustain local communities by creating employment opportunities across a wide range of sectors, both directly and indirectly. Active duty and civilian employees spend their military wages on goods and services produced locally, while pensions and other benefits provide retirees and dependents a reliable source of income. States and communities also benefit from defense contracts with private companies for equipment, supplies, construction and various services such as health care and information technology.
According to an analysis by the DoD Office of Economic Adjustment (OEA), the department spent $408 billion on payroll and contracts in Fiscal Year 2015, approximately 2.3 percent of U.S. gross domestic product (GDP). Spending was highest in Virginia, followed by California, Texas, Maryland and Florida. Virginia has the largest defense spending as a share of state GDP at 11.8 percent, followed by Hawaii at 9.9 percent.
Place your mouse over the columns for details.
Figure 1. Top States by Total Defense Spending (in billions)
Figure 2. Highest Defense Spending as a Percentage of State GDP
The economic benefits created by military installations are susceptible to change at both the federal and state levels. Recent events such as the drawdown of troops in Iraq and Afghanistan, federal budget cuts, and potential future rounds of Base Realignment and Closure have left government officials uncertain of the future role and sustainability of military installations.
These trends have been a driving force behind many states’ decisions to commission studies that define the military activity and infrastructure that exists in the state and measure the economic impact of military presence. Economic impact studies allow states to better advocate on behalf of their installations and plan for future growth or restructuring.
At least 24 states have commissioned their own study to quantify the direct and indirect effects of military presence on a state’s economy. Impacts generally include salaries and benefits paid to military and civilian personnel and retirees, defense contracts, local business activity supported by military operations, tax revenues and other military spending. In 2015, for example, military installations in North Carolina supported 578,000 jobs, $34 billion in personal income and $66 billion in gross state product. This amounts to roughly 10 percent of the state’s overall economy.
In 2014, Colorado lawmakers appropriated $300,000 in state funds to examine the comprehensive value of military activities across the state’s seven major installations. The state Department of Military and Veterans Affairs released its study in May 2015, reporting a total economic impact of $27 billion.
Kentucky has also taken steps to measure military activity, releasing its fifth study in June 2016. The military spent approximately $12 billion in Kentucky during 2014-15. With 38,700 active duty and civilian employees, military employment exceeds the next largest state employer by more than 21,000 jobs.
Even states with relatively small military footprints have reported significant economic gains. In Michigan, for example, defense spending in Fiscal Year 2014 supported 105,000 jobs, added more than $9 billion in gross state product and created nearly $10 billion in personal income. A 2016 study sponsored by the Michigan Defense Center presents a statewide strategy to preserve Army and Air National Guard facilities following a future Base Realignment and Closure (BRAC) round as well as to attract new missions.
Economic Impact of Military Presence by State
|
State
|
DoD Office of Economic Adjustment Study (FY 2015)
|
State-Commissioned Studies
|
|
Defense Spending FY 2015
|
% of State GDP
|
Defense Personnel (Active, Civilian, Guard/Res)
|
Year
|
Key Findings
|
|
Alabama
|
$12.2 billion
|
5.9%
|
52,116
|
N/A
|
None Found
|
|
Alaska
|
$3.3 billion
|
6.1%
|
27,764
|
N/A
|
None Found
|
|
Arizona
|
$10.0 billion
|
3.4%
|
42,547
|
2008
|
- $9.1 billion in economic output
- 96,328 jobs created or supported
- Annual state and local tax revenue of $401 million
|
|
Arkansas
|
$1.4 billion
|
1.2%
|
20,229
|
N/A
|
None Found
|
|
California
|
$49.3 billion
|
2.1%
|
269,540
|
N/A
|
None Found
|
|
Colorado
|
$8.7 billion
|
2.8%
|
61,294
|
2015
|
- $27 billion in total state output from DoD expenditures
- 170,000 jobs, 5.2% of total
- $11.6 billion in earnings, 7.5% of total
|
|
Connecticut
|
$9.7 billion
|
3.8%
|
15,414
|
N/A
|
None Found
|
|
Delaware
|
$676.8 million
|
1.0%
|
9,959
|
2011*
|
- The Delaware National Guard paid costs of nearly $67.5 million to employ 759 military personnel and civilian employees as well as $24.2 million to the 2,462 Soldiers and Airmen on drill status.
- The DNG spent nearly $33 million in construction
|
|
District of Columbia
|
$6.8 billion
|
5.7%
|
25,550
|
N/A
|
None Found
|
|
Florida
|
$17.6 billion
|
2.0%
|
126,292
|
2013
|
- Total defense spending amounted to $31.3 billion
- Defense spending was directly or indirectly responsible for $73.4 billion, or 9.4% of Florida’s 2011 Gross State Product
- Provided a total of 758,112 direct and indirect jobs.
|
|
Georgia
|
$12.6 billion
|
2.6%
|
129,463
|
N/A
|
None Found
|
|
Hawaii
|
$7.8 billion
|
9.8%
|
73,487
|
2012
|
- Direct and indirect impacts exceeded $14.7 billion
- Provided 102,000 jobs
|
|
Idaho
|
$643.3 million
|
1.0%
|
10,436
|
N/A
|
None Found
|
|
Illinois
|
$7.0 billion
|
0.9%
|
57,078
|
2014
|
- $13.3 billion in gross state product
- $9.7 billion in earnings and retirement benefits
- Provided 150,000 jobs
|
|
Indiana
|
$3.9 billion
|
1.2%
|
31,376
|
N/A
|
None Found
|
|
Iowa
|
$1.4 billion
|
0.8%
|
12,969
|
N/A
|
None Found
|
|
Kansas
|
$3.3 billion
|
2.3%
|
41,152
|
2009
|
- $7.7 billion per year in gross state product, 7% of total
- 169,560 jobs supported directly or indirectly (9.4% of total employment)
- $393.6 million per year in city/county, region and state tax revenue
|
|
Kentucky
|
$9.0 billion
|
4.7%
|
57,080
|
2016
|
- Nearly $12 billion in federal military spending
- With over 38,000 full-time employees, it is the largest employer in Kentucky.
- About 28,500 military retirees received $637 million in retirement pay.
|
|
Louisiana
|
$3.8 billion
|
1.5%
|
41,250
|
2013
|
- $8.7 billion in economic output
- 82,700 jobs tied to the military (4.35% of total employment)
- $287 million in state and local tax revenue
|
|
Maine
|
$2.6 billion
|
4.7%
|
11,794
|
N/A
|
None Found
|
|
Maryland
|
$20.5 billion
|
5.7%
|
93,183
|
2015
|
- 15 military installations supported 410,219 jobs
- Generates $57.4 billion in total output and $25.7 billion in total wages
|
|
Massachusetts
|
$12.2 billion
|
2.6%
|
24,174
|
2015
|
- Military installations total expenditures over $8 billion in 2013
- A total of 57,618 jobs supported directly or indirectly by the military’s presence in Massachusetts.
- Total economic output of $13.2 billion
|
|
Michigan
|
$2.9 billion
|
0.6%
|
25,689
|
2016
|
- Supported over 105,000 job throughout the state
- Added more than $9 billion in Gross State Product
- Created nearly $10 billion in personal income
- Activities supported nearly $8 billion in personal expenditures
|
|
Minnesota
|
$4.3 billion
|
1.3%
|
21,823
|
N/A
|
None Found
|
|
Mississippi
|
$5.2 billion
|
4.9%
|
37,006
|
N/A
|
None Found
|
|
Missouri
|
$10.6 billion
|
3.7%
|
43,020
|
2013
|
- Created $39.76 billion in total economic impact
- Added 275,350 direct and indirect jobs
|
|
Montana
|
$519 million
|
1.1%
|
9,185
|
N/A
|
None Found
|
|
Nebraska
|
$1.5 billion
|
1.3%
|
16,776
|
2015*
|
- Nebraska Military Department employed 4,545.5 jobs with a total payroll of about $150 million
- Received $22 million in federal appropriations
|
|
Nevada
|
$2.3 billion
|
1.6%
|
20,683
|
2014
|
- The DoD budget in Nevada accounted for 53,000 jobs
- Increased economic output by $28 billion
- Provided $9 billion in increased personal earnings
- Created $307 million in increased state taxes
|
|
New Hampshire
|
$1.4 billion
|
2.0%
|
6,350
|
N/A
|
None Found
|
|
New Jersey
|
$6.6 billion
|
1.2%
|
33,834
|
2013
|
- $4.8 billion in DoD military expenditures resulted in $6.5 billion in gross state product
- Creation of 73,234 direct and indirect jobs
|
|
New Mexico
|
$3.1 billion
|
3.4%
|
23,539
|
N/A
|
None Found
|
|
New York
|
$9.1 billion
|
0.6%
|
61,765
|
2012
|
In Progress
|
|
North Carolina
|
$9.8 billion
|
2.0%
|
144,881
|
2015
|
- $66 billion in gross state product, roughly 10% of the state’s economy
- 578,000 direct and indirect jobs
- Provided for $34 billion in personal income
|
|
North Dakota
|
$747.2 million
|
1.4%
|
13,296
|
N/A
|
None Found
|
|
Ohio
|
$6.9 billion
|
1.2%
|
60,224
|
N/A
|
None Found
|
|
Oklahoma
|
$4.7 billion
|
2.6%
|
57,080
|
2011
|
- $9.6 billion in gross state product, 7% of statewide total
- Supported 133,800 direct and indirect jobs
- Average military job paid $41,742 compared to the state average of $38,237
|
|
Oregon
|
$1.3 billion
|
0.6%
|
13,356
|
N/A
|
None Found
|
|
Pennsylvania
|
$12.7 billion
|
1.9%
|
57,919
|
N/A
|
None Found
|
|
Rhode Island
|
$2.0 billion
|
3.5%
|
12,216
|
N/A
|
None Found
|
|
South Carolina
|
$5.3 billion
|
2.7%
|
65,632
|
2012
|
- $15.7 billion in economic activity
- 138,161 jobs supported
- Since 2000, DoD has distributed over $34 billion to defense contractors, accounting for 2% of gross state product each year
|
|
South Dakota
|
$456.8 million
|
1.0%
|
9,257
|
N/A
|
None Found
|
|
Tennessee
|
$2.4 billion
|
0.8%
|
71,441
|
N/A
|
None Found
|
|
Texas
|
$37.9 billion
|
2.3%
|
218,523
|
2015 – 2016
|
- $136 billion in total economic impact
- More than 232,000 personnel at 15 military installations
- $16.64 billion in total defense contract funds
- $13.8 billion in DoD military expenditures
|
|
Utah
|
$3.2 billion
|
2.2%
|
30,486
|
2014
|
In Progress (2014 HB 313)
|
|
Vermont
|
$295.5 million
|
1.0%
|
4,931
|
N/A
|
None Found
|
|
Virginia
|
$53.0 billion
|
11.2%
|
246,553
|
2014
|
- Defense spending was $59.6 billion or 13% of gross state product
- Military spending accounts for 44% of federal spending in Virginia
|
|
Washington
|
$12.6 billion
|
2.9%
|
107,341
|
2010
|
- $7.9 billion in military installation expenditures and $5.2 billion in contract spending
- $12.2 billion in gross state product, 4% of total
- Supported 191,600 jobs
|
|
West Virginia
|
$527 million
|
0.7%
|
10,204
|
N/A
|
None Found
|
|
Wisconsin
|
$2.3 billion
|
0.8%
|
18,035
|
N/A
|
None Found
|
|
Wyoming
|
$370 million
|
0.9%
|
7,171
|
N/A
|
None Found
|
|
American Samoa
|
N/A
|
N/A
|
N/A
|
N/A
|
None Found
|
|
Guam
|
N/A
|
N/A
|
N/A
|
N/A
|
None Found
|
|
Northern Mariana Islands
|
N/A
|
N/A
|
N/A
|
N/A
|
None Found
|
|
Puerto Rico
|
N/A
|
N/A
|
N/A
|
N/A
|
None Found
|
|
U.S. Virgin Islands
|
N/A
|
N/A
|
N/A
|
N/A
|
None Found
|
* Study focused on National Guard
Additional Studies
|
Study
|
Year
|
Key Findings
|
Link
|
|
50-State Study
|
2011
(2009 Data)
|
This Bloomberg Government study examines U.S. military spending in fiscal year 2009 and provides a snapshot of defense spending at the state and local levels for all 50 states and the District of Columbia.
For fiscal year 2009, $527.8 billion was spent in the U.S. for the salaries of military personnel and civilian employees, military pensions, contracts for military equipment supplies, construction, services and research, and for grants.
The Defense Department operated 4,742 sites, such as bases and office buildings, in the U.S. in 2009.
|
Bloomberg Government Study
|
|
50-State Study
|
2016
|
State leaders’ focus on preserving the presence and economic contribution of military installations has reached an all-time high, with eight states establishing military affairs organizations in the past three years.
Budget cuts at the Pentagon have fallen particularly hard on installations, trimming funding for facility maintenance, upgrades and new construction, as well as quality-of-life services for military members and their families
At the same time, DOD has urged Congress to approve a new round of base closures every year since 2012.
|
State Support for Defense Installations
|
|
New England Study
|
2012
(2011 Data)
|
The defense industry is a major contributor to the economy of New England and to each of the six states that comprise it.
Defense and Homeland Security contracting is responsible for a total of more than 319,000 jobs and a total payroll of more than $22.6 billion across the region.
The overall direct, indirect and induced economic activity generated by the resulting work performed in New England exceeds $62 billion
|
New England Defense Industry
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Additional Resources