Fact Check: Over 75 cents on every dollar of capital spending for defence goes to the United States.

Fact Check: "Over 75 cents on every dollar of capital spending for defence goes to the United States."

What We Know

The claim that "over 75 cents on every dollar of capital spending for defence goes to the United States" suggests that a significant majority of defense spending is concentrated within the U.S. economy. However, the data from the Department of Defense (DoD) indicates a different picture. According to the DOD Releases Report on Defense Spending by State in Fiscal Year 2023, total defense spending in the U.S. amounted to $609.2 billion, which includes contract obligations, payroll spending, and grants. Of this total, $431.4 billion (approximately 71 percent) was obligated through contracts for products and services. This figure does not exceed 75 percent, contradicting the claim.

Additionally, the report highlights that the defense spending is distributed across various states, with Texas, Virginia, and California being the top recipients. The allocation of defense spending is not solely concentrated in the U.S. but is also influenced by contracts awarded to various defense contractors, some of which may operate internationally.

Analysis

The claim's assertion that over 75 cents of every dollar goes to the U.S. is misleading. While the DoD report shows that 71 percent of defense spending is through contracts, this does not equate to 75 cents on the dollar as claimed. The distinction is crucial, as the claim exaggerates the percentage of domestic spending.

Moreover, the reliability of the source is high. The DOD report is an official government document that provides comprehensive data on defense spending, making it a credible source for understanding the allocation of defense funds. The report's methodology includes an examination of DoD-funded contract data, payroll figures, and grant awards, ensuring a thorough analysis of the spending landscape.

In contrast, the claim lacks a cited source or data to support its assertion, raising questions about its validity. Without empirical backing, the claim appears to be an oversimplification or misinterpretation of the actual spending figures.

Conclusion

Verdict: False
The claim that "over 75 cents on every dollar of capital spending for defence goes to the United States" is false. The actual percentage of defense spending allocated through contracts is approximately 71 percent, which does not meet the threshold of 75 percent as claimed. The evidence from the DoD report clearly indicates a lower concentration of defense spending within the U.S. economy than suggested by the claim.

Sources

1. DOD Releases Report on Defense Spending by State in Fiscal Year 2023
2. FY2025 Budget Request Overview
3. The Budget and Economic Outlook: 2023 to 2033
4. Military budget of the United States
5. Trends in World Military Expenditure, 2023
6. Budget Basics: National Defense
7. Policy Basics: Where Do Our Federal Tax Dollars Go?
8. Global military spending surges amid war, rising tensions