Every April, as we watch our hard-earned dollars disappear into the federal void, the same question bubbles up: Where is all this money actually going? In 2026, with global tensions at a fever pitch and the Iran war driving up prices at the pump, that question feels a lot more urgent.
If you ask ten different people how much of the budget goes to the U.S. military, you’ll get ten different answers — ranging from “a modest slice” to “the whole pie.” The truth depends entirely on how you slice the data.
So, How Much Are We Spending?
The reason people argue about this is that the government uses two different “buckets” for spending.
First, there is Mandatory Spending. These are things like Social Security and Medicare that run on autopilot. Then, there is Discretionary Spending — the part of the budget Congress actually sits down and votes on every year.
If you only look at the “Discretionary” bucket, the military is the undisputed king. In 2024, defense programs accounted for about 48% of everything Congress voted to fund. This is why it feels like a zero-sum game; every dollar added to a new fighter jet often feels like it’s being “stolen” from education or infrastructure.
If you look at the entire $7.01 trillion the government spent in 2025 (including Social Security and interest on our debt), the military “only” consumed about 13%.
The $1 Trillion ‘Security Footprint’
For the first time in history, the total U.S. national security footprint is expected to cross the $1 trillion mark in 2026. But “military spending” isn’t just the Department of Defense. To get the real number, you have to look at the “hidden” defense costs:
- The Department of Energy: They handle the nuclear weapons stockpile. That’s another $20.4 billion in 2026.
- The Intelligence Community: The CIA, NSA, and other “spies” cost roughly $81.9 billion.
- The VA: Caring for veterans costs about $441.3 billion. While this is technically separate, many analysts argue it’s a “deferred cost” of war that should be counted in the total.
Here is the most shocking stat for 2026: We now spend more on interest than we do on the military. Thanks to years of borrowing and rising rates, servicing the national debt now consumes about 14% of the total budget, while defense sits at 13%. As recently as 2022, interest was only 8%. We have officially reached a point where the cost of our past debt is more expensive than our current national defense.
The Global Reality Check
It’s no secret that the U.S. outspends everyone else. Our military budget is 3.2 times larger than China’s. In fact, we account for 37% of all military spending on the entire planet.
However, because the American economy is so massive, that $1 trillion only represents about 2.8% of our GDP, which is the smallest share since 1962. We are spending more than ever in terms of raw dollars, but as a percentage of our total economic output, the military is actually “shrinking” compared to the massive growth of healthcare and retirement programs.
More From Cheapism
- How U.S. Military Spending Compares to Other Countries — Want to read more about how the United States’ military spending compares to other countries? Take a look at our explainer.
- The Biggest U.S. Military Site in Every State — These are the biggest military sites in each state — do you know yours?
- America’s Mightiest Military Vehicles — If you’re fascinated by the military, check out these vehicles used by our armed forces.
