From Study IX, Exhibit 2

Defense took 3.0% of GDP and 13.1% of federal outlays in FY2025

Source. OMB Historical Tables, FY2027 edition (April 2026), Table 3.1 and Table 10.1. Fiscal years 1940–2025, with OMB estimates to 2031.

Method and data

Method. National defense as a percent of GDP and of total outlays as published in Table 3.1; veterans and international affairs are their Table 3.1 outlays divided by Table 10.1 GDP and by Table 3.1 total outlays. 2026–2031 are OMB’s estimates.

Fiscal yearBasisDefense (% of GDP)Veterans (% of GDP)International (% of GDP)Defense (% of outlays)Veterans (% of outlays)International (% of outlays)
1940Actual1.70.580.05217.56.020.54
1941Actual5.50.4820.12547.14.11.06
1942Actual17.40.3390.655731.432.75
1943Actual36.10.150.69784.90.351.64
1944Actual37−0.0590.67886.7−0.141.59
1945Actual36.60.0490.84589.50.122.06
1946Actual18.71.0810.84977.34.463.5
1947Actual5.42.6562.42437.118.3916.79
1948Actual3.52.4651.74330.621.6915.34
1949Actual4.82.3872.18933.916.9915.58
1950Actual4.93.171.67732.220.7610.98
1951Actual7.21.691.11551.812.148.01
1952Actual12.91.4960.75468.17.893.98
1953Actual13.81.1830.55569.45.942.78
1954Actual12.71.1920.41269.56.512.25
1955Actual10.51.1510.54762.46.833.25
1956Actual9.71.1160.55160.26.923.42
1957Actual9.81.080.67959.36.544.11
1958Actual9.91.130.7156.86.494.08
1959Actual9.71.0790.62353.25.913.41
1960Actual91.0180.55952.25.93.24
1961Actual9.11.0440.58350.85.843.26
1962Actual8.90.9610.963495.275.28
1963Actual8.60.8930.859484.964.77
1964Actual8.30.8590.74746.24.794.17
1965Actual7.10.8070.74342.84.844.46
1966Actual7.40.7590.71543.24.44.15
1967Actual8.50.8060.66545.44.283.53
1968Actual9.10.7850.591463.952.98
1969Actual8.40.780.46944.94.162.5
1970Actual7.80.8290.41441.84.442.21
1971Actual7.10.8760.37237.54.651.98
1972Actual6.50.8820.39334.34.652.07
1973Actual5.70.8880.30731.24.891.69
1974Actual5.40.9030.38529.54.972.12
1975Actual5.41.0330.442264.992.14
1976Actual51.0320.3624.14.961.73
1977Actual4.80.8910.31423.84.411.55
1978Actual4.60.8350.32922.84.141.63
1979Actual4.50.7770.29123.13.951.48
1980Actual4.80.7590.45522.73.582.15
1981Actual50.7340.41823.23.391.93
1982Actual5.60.7230.37124.83.211.65
1983Actual5.90.7030.335263.071.47
1984Actual5.80.6480.40226.73.011.86
1985Actual5.90.6160.37926.72.781.71
1986Actual60.5820.31327.62.661.43
1987Actual5.90.5610.24428.12.671.16
1988Actual5.70.5720.20427.32.760.98
1989Actual5.50.5410.17326.52.630.84
1990Actual5.10.4930.23323.92.321.1
1991Actual4.50.5140.2620.62.371.2
1992Actual4.60.5320.25121.62.471.16
1993Actual4.30.5270.25420.72.531.22
1994Actual3.90.5240.23819.32.571.17
1995Actual3.60.5010.21717.92.51.08
1996Actual3.30.4650.17172.370.86
1997Actual3.20.4650.1816.92.460.95
1998Actual30.4680.14616.22.530.79
1999Actual2.90.4560.16116.12.540.9
2000Actual2.90.4650.1716.52.630.96
2001Actual2.90.4280.15716.42.420.88
2002Actual3.20.4710.20617.32.541.11
2003Actual3.60.5040.18818.72.630.98
2004Actual3.80.4970.22319.92.611.17
2005Actual3.90.5460.269202.841.4
2006Actual3.80.5120.21619.72.631.11
2007Actual3.90.5090.19920.22.671.04
2008Actual4.20.5730.19520.72.840.97
2009Actual4.60.660.25918.82.721.07
2010Actual4.70.7290.30420.13.141.31
2011Actual4.60.8230.29519.63.531.27
2012Actual4.20.7740.22819.23.541.04
2013Actual3.80.8330.27818.34.021.34
2014Actual3.50.8590.26917.24.271.34
2015Actual3.20.880.286164.331.41
2016Actual3.20.9360.24315.44.531.18
2017Actual3.10.9110.239154.431.16
2018Actual3.10.8750.23915.44.351.19
2019Actual3.20.9390.24915.44.491.19
2020Actual3.41.0250.14511.13.360.47
2021Actual3.31.0170.19611.13.430.66
2022Actual31.0730.27612.24.381.13
2023Actual31.1010.2313.44.921.03
2024Actual31.1250.195134.830.84
2025Actual31.2440.14913.15.380.64
2026OMB estimate31.3720.18612.85.840.79
2027OMB estimate3.61.4070.18514.95.870.77
2028OMB estimate3.71.5350.16115.76.460.68
2029OMB estimate3.61.4090.15415.56.090.66
2030OMB estimate3.41.4650.134156.40.58
2031OMB estimate3.31.4590.12314.86.480.55

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Higgins Strategy. “Defense took 3.0% of GDP and 13.1% of federal outlays in FY2025” Exhibit 2, Every Dollar of War (Study IX). October 12, 2026. https://higginsstrategy.com/charts/09-defense-veterans-international-shares-1940-2031/