Texas Tops All States in Defense Spending 💰

Key Takeaways

• Texas received $71.6 billion in U.S. Department of Defense spending in 2023—an $8.9 billion jump from the previous year.
• Virginia follows next, at $68.5 billion, with the military industry contributing 19% to the state's GDP covering more than 872,000 direct and indirect jobs.
• Ranking in third is California, bolstered by Silicon Valley’s decades-long relationship with the defense sector.

Texas Jumps to Top Spot

In fiscal year 2023, Texas outranked Virginia as the leading recipient of Department of Defense spending—largely concentrated in the Dallas-Fort Worth area.

Over the past decade, Texas' share of defense spending has increased by 10% while Virginia's has remained fairly stable.

Lockheed Martin has several factories in Texas, including an F-35 assembly plant while RTX Corporation and General Dynamics operate facilities across the state.