The U.S. defense budget topped $850 billion in fiscal 2022, more than the combined military spending of the next 10 countries combined. This money goes to fund a wide range of obligations, from operations to payroll for troops and civilian defense personnel. The bulk of the U.S. military budget, however, is spent on contracts with companies in the private sector.
The Defense Department does more business through private contracts than all other federal agencies combined. The Pentagon relies on contractors for services including research and development, weapon systems procurement, facility maintenance, and equipment repair. Outsourcing to third parties in the private sector allows the government to more rapidly and effectively adapt to changing circumstances and needs – though reliance on contractors also raises the potential for waste, fraud, and abuse.
The latest available government data shows that the Pentagon spent $1.5 billion on private sector contracts in Minnesota in 2021. No company in the state received more federal defense dollars that year than Northrop Grumman, which brought in $340.7 million in military contracts – or 22.6% of all contractor spending in the state.
Other major defense contractors operating in Minnesota include BAE Systems, Cummins, and 3M, which received $274.9 million, $98.1 million, and $77.7 million, respectively, in 2021.
All data in this story is from the Defense Department’s report, Defense Spending By State Fiscal Year 2021.
| State | Total contract spending, 2021 ($) | Top defense contractor, 2021 | Spending on top defense contractor, 2021 ($) |
|---|---|---|---|
| Alabama | 12.2 billion | Boeing | 2.1 billion |
| Alaska | 1.7 billion | Arctic Slope Regional Corp. | 233.1 million |
| Arizona | 12.3 billion | Raytheon Technologies | 6.2 billion |
| Arkansas | 1.2 billion | Aerojet Rocketdyne | 591.3 million |
| California | 40.2 billion | Northrop Grumman | 4.5 billion |
| Colorado | 8.4 billion | Lockheed Martin | 2.3 billion |
| Connecticut | 18.4 billion | General Dynamics | 8.7 billion |
| Delaware | 474.2 million | AstraZeneca PLC | 287.1 million |
| Florida | 21.7 billion | Lockheed Martin | 6.3 billion |
| Georgia | 7.6 billion | Lockheed Martin | 2.3 billion |
| Hawaii | 2.6 billion | Hensel Phelps Construction | 212.7 million |
| Idaho | 206.4 million | Brad Hall & Associates | 45.3 million |
| Illinois | 7 billion | Northrop Grumman | 1.1 billion |
| Indiana | 5.7 billion | Eli Lilly and Co. | 1.9 billion |
| Iowa | 2.1 billion | Raytheon Technologies | 1.1 billion |
| Kansas | 1.5 billion | Webuild | 218.8 million |
| Kentucky | 10.6 billion | Humana | 7.1 billion |
| Louisiana | 1.7 billion | Thoma-Sea Marine Constructors | 197.4 million |
| Maine | 2.4 billion | General Dynamics | 1.1 billion |
| Maryland | 17.9 billion | Johns Hopkins University | 1.6 billion |
| Massachusetts | 20.1 billion | Moderna, Inc. | 6.9 billion |
| Michigan | 5.1 billion | General Dynamics | 2.3 billion |
| Minnesota | 1.5 billion | Northrop Grumman | 340.7 million |
| Mississippi | 3.8 billion | Huntington Ingalls | 2 billion |
| Missouri | 10.5 billion | Boeing | 6.9 billion |
| Montana | 246.8 million | S & K Technologies | 65.7 million |
| Nebraska | 690.6 million | Peraton Corp. | 97.1 million |
| Nevada | 1.8 billion | Sierra Nevada Corp. | 396.8 million |
| New Hampshire | 2 billion | BAE Systems | 1.1 billion |
| New Jersey | 7.3 billion | Lockheed Martin | 1.6 billion |
| New Mexico | 1.8 billion | Applied Research Associates | 138.7 million |
| New York | 27.9 billion | Pfizer, Inc. | 13.3 billion |
| North Carolina | 4.2 billion | GlaxoSmithKline | 314.5 million |
| North Dakota | 211.4 million | Four Tribes Enterprises LLC | 20.6 million |
| Ohio | 6.3 billion | General Electric | 757.5 million |
| Oklahoma | 3 billion | Boeing | 1.1 billion |
| Oregon | 800 million | Vigor Industrial | 101 million |
| Pennsylvania | 13.4 billion | AmerisourceBergen | 2 billion |
| Rhode Island | 756.9 million | Raytheon Technologies | 177.8 million |
| South Carolina | 3.1 billion | Scientific Research Corp. | 142.2 million |
| South Dakota | 225.6 million | Sterling Computers | 75.1 million |
| Tennessee | 2 billion | BAE Systems | 451.7 million |
| Texas | 35.1 billion | Lockheed Martin | 13.7 billion |
| Utah | 4.3 billion | Northrop Grumman | 2.1 billion |
| Vermont | 349.5 million | Raytheon Technologies | 115.2 million |
| Virginia | 42.6 billion | Huntington Ingalls | 4.1 billion |
| Washington | 11.7 billion | Boeing | 7.7 billion |
| West Virginia | 505.4 million | Northrop Grumman | 293.8 million |
| Wisconsin | 4.5 billion | Oshkosh Corp. | 2.1 billion |
| Wyoming | 125.1 million | M1 Support Services | 24.9 million |
