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'An Arsenal of Profiteering': Military Contractors Have Gotten Over Half of Pentagon Spending Since 2020
"These figures represent a continuing and massive transfer of wealth from taxpayers to fund war and weapons manufacturing," said the project's director.
Jul 08, 2025
Less than a week after U.S. President Donald Trump signed a budget package that pushes annual military spending past $1 trillion, researchers on Tuesday published a report detailing how much major Pentagon contractors have raked in since 2020.
Sharing The Guardian's exclusive coverage of the paper on social media, U.K.-based climate scientist Bill McGuire wrote: "Are you a U.S. taxpayer? I am sure you will be delighted to know where $2.4 TRILLION of your money has gone."
The report from the Costs of War Project at Brown University's Watson School of International and Public Affairs and the Quincy Institute for Responsible Statecraft shows that from 2020-24 private firms received $2.4 trillion in Department of Defense contracts, or roughly 54% of DOD's $4.4 trillion in discretionary spending for that five-year period.
The publication highlights that "during those five years, $771 billion in Pentagon contracts went to just five firms: Lockheed Martin ($313 billion), RTX (formerly Raytheon, $145 billion), Boeing ($115 billion), General Dynamics ($116 billion), and Northrop Grumman ($81 billion)."
In a statement about the findings, Stephanie Savell, director of the Costs of War Project, said that "these figures represent a continuing and massive transfer of wealth from taxpayers to fund war and weapons manufacturing."
"This is not an arsenal of democracy—it's an arsenal of profiteering," Savell added. "We should keep the enormous and growing power of the arms industry in mind as we assess the rise of authoritarianism in the U.S. and globally."
Between 2020 and 2024, $771 billion in Pentagon contracts went to just five firms: Lockheed Martin, RTX, Boeing, General Dynamics, and Northrop Grumman. By comparison, the total diplomacy, development, and humanitarian aid budget, excluding military aid, was $356 billion. [5/12]
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— The Costs of War Project (@costsofwar.bsky.social) July 8, 2025 at 2:43 PM
The paper points out that "by comparison, the total diplomacy, development, and humanitarian aid budget, excluding military aid, was $356 billion. In other words, the U.S. government invested over twice as much money in five weapons companies as in diplomacy and international assistance."
"Record arms transfers have further boosted the bottom lines of weapons firms," the document details. "These companies have benefited from tens of billions of dollars in military aid to Israel and Ukraine, paid for by U.S. taxpayers. U.S. military aid to Israel was over $18 billion in just the first year following October 2023; military aid to Ukraine totals $65 billion since the Russian invasion in 2022 through 2025."
"Additionally, a surge in foreign-funded arms sales to European allies, paid for by the recipient nations—over $170 billion in 2023 and 2024 alone—have provided additional revenue to arms contractors over and above the funds they receive directly from the Pentagon," the paper adds.
The 23-page report stresses that "annual U.S. military spending has grown significantly this century," as presidents from both major parties have waged a so-called Global War on Terror and the DOD has continuously failed to pass an audit.
Specifically, according to the paper, "the Pentagon's discretionary budget—the annual funding approved by Congress and the large majority of its overall budget—rose from $507 billion in 2000 to $843 billion in 2025 (in constant 2025 dollars), a 66% increase. Including military spending outside the Pentagon—primarily nuclear weapons programs at the Department of Energy, counterterrorism operations at the Federal Bureau of Investigation (FBI), and other military activities officially classified under 'Budget Function 050'— total military spending grew from $531 billion in 2000 to $899 billion in 2025, a 69% increase."
Republicans' One Big Beautiful Bill Act passed earlier this month "adds $156 billion to this year's total, pushing the 2025 military budget to $1.06 trillion," the document notes. "After taking into account this supplemental funding, the U.S. military budget has nearly doubled this century, increasing 99% since 2000."
Noting that "taxpayers are expected to fund a $1 trillion Pentagon budget," Security Policy Reform Institute co-founder Stephen Semler said the paper, which he co-authored, "illustrates what they'll be paying for: a historic redistribution of wealth from the public to private industry.”
Semler produced the report with William Hartung, senior research fellow at the Quincy Institute. Hartung said that "high Pentagon budgets are often justified because the funds are 'for the troops.'"
"But as this paper shows, the majority of the department's budget goes to corporations, money that has as much to do with special interest lobbying as it does with any rational defense planning," he continued. "Much of this funding has been wasted on dysfunctional or overpriced weapons systems and extravagant compensation packages."
The arms industry has used an array of tools of influence to create an atmosphere where a Pentagon budget that is $1 trillion per year is deemed “not enough” by some members of Congress. [9/12]
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— The Costs of War Project (@costsofwar.bsky.social) July 8, 2025 at 2:43 PM
In addition to spotlighting how U.S. military budgets funnel billions of dollars to contractors each year, the report shines a light on the various ways the industry influences politics.
"The ongoing influence of the arms industry over Congress operates through tens of millions in campaign contributions and the employment of 950 lobbyists, as of 2024," the publication explains. "Military contractors also shape military policy and lobby to increase military spending by funding think tanks and serving on government commissions."
"Senior officials in government often go easy on major weapons companies so as not to ruin their chances of getting lucrative positions with them upon leaving government service," the report notes. "For its part, the emerging military tech sector has opened a new version of the revolving door—the movement of ex-military officers and senior Pentagon officials, not to arms companies per se, but to the venture capital firms that invest in Silicon Valley arms industry startups."
The paper concludes by arguing that "the U.S. needs stronger congressional and public scrutiny of both current and emerging weapons contractors to avoid wasteful spending and reckless decision-making on issues of war and peace. Profits should not drive policy."
"In particular," it adds, "the role of Silicon Valley startups and the venture capital firms that support them needs to be better understood and debated as the U.S. crafts a new foreign policy strategy that avoids unnecessary wars and prioritizes cooperation over confrontation."
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Critics Warn Trump Plan for 'Zombie' Coal Plants Will Make Energy Dirtier and Costlier
"The Trump administration is once again putting its thumb on the scale to help old, dirty power sources at the expense of air quality, public health, and higher energy bills," said one opponent.
Jul 08, 2025
Green groups warned Tuesday that the Trump administration's plan to invoke a bogus "energy emergency" in order to keep old, polluting coal-fired plants running will make electricity generation dirtier and more expensive while failing to produce enough power to keep up with surging demand.
On Tuesday, the U.S. Department of Energy published a resource adequacy analysis that includes plans for boosting fossil-fueled electricity generation, including at coal-fired plants. The report cites President Donald Trump's executive orders declaring a national energy emergency and strengthening the reliability and security of the nation's electric grid, and highlights the DOE's plan to classify aging fossil fuel plants as critical to system reliability. The administration is also likely to continue invoking Section 202(c) of the Federal Power Act and the Defense Production Act in order to extend the lifespans of older fossil fuel plants.
Although the analysis acknowledges that "old tools won't solve new problems," its methodology supports keeping expensive and polluting coal plants in operation. Dirty coal plants that continue to operate despite economic inefficiencies are sometimes called "zombie" plants.
"More clean energy will make the U.S. grid stronger, more reliable, and more resilient."
Not only does the report fail to state that the burning of fossil fuels is the leading driver of the climate emergency, it does not even mention the word "climate" once in its 73 pages. This tracks with the Trump administration's long-standing proscription of the term "climate change."
"The methodology released today is another attempt to push the false narrative that our country's energy future depends upon decades-old coal and gas plants, rather than clean renewables," said Sierra Club senior attorney Greg Wannier. "The only energy crisis faced by the American public is the catastrophic increase in costs that the Trump administration is forcing on the country's ratepayers."
Wannier noted that the Federal Energy Regulatory Commission and states "are already well equipped to meet any projected resource needs through the existing regulatory process, which ensures that electricity demand is reliably met at the least public cost."
"Any effort by DOE to override this process to forcibly keep coal plants online past their planned retirements would be an extraordinary and unlawful overreach of its regulatory authority," Wannier added. "It would be particularly harmful and costly to the communities living near these power plants who face the possibility of continued exposure to toxic levels of air and water pollution."
Ted Kelly, director and lead counsel for U.S. clean energy at the Environmental Defense Fund, said Tuesday:
The Trump administration is once again putting its thumb on the scale to help old, dirty power sources at the expense of air quality, public health, and higher energy bills for American families and businesses. This time it has issued a methodology that uses dodgy accounting to ignore all the clean energy we have at our disposal—including solar, wind, and battery technologies that are helping meet our nation's energy needs and support the reliability of our electric grid—in order to make a bogus case that these old, dirty power plants are needed. The administration's deeply flawed approach can't hide the fact that clean energy resources are helping keep lights on and lower electricity bills across the country, while keeping old, dirty power plants on life support will mean higher power bills for families and more toxic, cancer-causing pollution in the air we breathe.
The Trump administration has already used the nonexistent energy emergency in a push to fast-track fossil fuel permitting, keep fossil-fueled plants operating, and to wage lawfare against Democrat-controlled states trying to hold Big Oil financially accountable for its role in causing the climate emergency. In 2017, the first Trump administration also moved to bail out financially floundering coal and nuclear plants.
"No matter how they try to gussy it up, bailing out coal or other fossil fuels when low-cost solar and wind power is growing so quickly makes even less sense today than it did in 2017 when the previous Trump administration tried it before," Kit Kennedy, managing director for power at the Natural Resources Defense Council (NRDC), said in response to the DOE plan.
"It's ironic that the Energy Department is warning about reliability just days after Republicans in Congress repealed the clean energy tax credits," Kennedy added, referring to a provision in the so-called One Big Beautiful Bill Act signed by Trump on Friday.
NRDC cites analysts' predictions that the legislation will reduce additions of the electricity needed to meet rapidly growing demand and raise wholesale electricity prices as much as 25% by 2030 and up to 74% by 2035.
"More clean energy will make the U.S. grid stronger, more reliable, and more resilient—all while saving consumers money on their electricity bills," Kennedy said. "Bailing out old, dirty coal, gas, and oil plants would mean higher costs and a less reliable grid."
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'Exactly What We Would Expect': Climate Scientists Weigh in on Deadly Texas Flooding
"It's not a question of whether climate change played a role—it's only a question of how much," said one expert.
Jul 06, 2025
As the death toll from catastrophic flooding in Texas continued to rise, climate scientists this weekend underscored the link between more frequent and severe extreme weather events and the worsening climate emergency caused primarily by humans burning fossil fuels.
Officials said Sunday that at least 69 people died in the floods, 59 of them in Kerr County. Of the 27 missing girls from Camp Mystic—some of whom were sleeping just 225 feet from the Guadalupe River when its waters surged during flash flooding Friday—11 are still missing.
While some local officials blamed what they said were faulty forecasts from the National Weather Service—which has been hit hard by staffing cuts ordered by the Trump administration's Department of Government Efficiency in line with Project 2025—meteorologists and climate scientists including Daniel Swain of the University of California, Los Angeles have refuted such allegations, citing multiple NWS warnings of potentially deadly flooding.
However, some experts asserted that vacancies at key NWS posts raise questions about forecasters' ability to coordinate emergency response with local officials.
Climate scientists do concur that human-caused global heating is causing stronger and more frequent extreme weather events including flooding.
"This kind of record-shattering rain (caused by slow-moving torrential thunderstorms) event is *precisely* that which is increasing the fastest in a warming climate," Swain wrote in a statement. "So it's not a question of whether climate change played a role—it's only a question of how much."
As Jeff Masters and Bob Henson wrote Saturday for Yale Climate Connections:
Many studies have confirmed that human-caused climate change is making the heaviest short-term rainfall events more intense, largely by warming the world's oceans and thus sending more water vapor into the atmosphere that can fuel heavy rain events. Sea surface temperatures this week have been as much as 1°F below the 1981-2010 average for early July in the western Gulf [of Mexico] and Caribbean, but up to 1°F above average in the central Gulf. Long-term human-caused warming made the latter up to 10 times more likely, according to the Climate Shift Index from Climate Central.
"The tragic events in Texas are exactly what we would expect in our hotter, climate-changed, world," Bill McGuire, professor emeritus of geophysics and climate hazards at University College London, said Saturday. "There has been an explosion in extreme weather in recent years, including more devastating flash floods caused by slow-moving, wetter, storms, that dump exceptional amounts of rain over small areas across a short time."
It’s hard to make the Texas flood tragedy worse, except to know that on the same day Trump signed a bill to stop our efforts to defeat the climate change that is causing increased frequency of disastrous floods. And giving us more expensive electricity. www.nytimes.com/2025/07/05/c...
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— Governor Jay Inslee (@govjayinslee.bsky.social) July 5, 2025 at 9:29 AM
Instead of taking action to combat the planetary emergency, the Trump administration is ramping up fossil fuel production while waging war on clean energy and climate initiatives. The so-called One Big Beautiful Bill Act signed into law by Trump on Friday slashes the tax credits for electric vehicles and other renewable technologies including wind and solar energy that were a cornerstone of the Biden-era Inflation Reduction Act.
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