Virginia, Texas and California emerged as the top three states for total defense spending in fiscal year 2022, according to a report released by the Department of Defense’s office of local defense community cooperation.
Florida, New York, Maryland, Connecticut, Pennsylvania, Massachusetts and Arizona are the other seven states that made the top 10 list when it comes to overall DOD spending, the department said Tuesday.
The FY 2022 Defense Spending by State report shows that Texas, Connecticut and North Carolina recorded the largest increases in overall DOD spending between FY 2021 and FY 2022.
Texas landed the second spot in the top 10 list of states and posted $58 billion in FY 2022 defense spending, which was driven by a major contract awarded to Lockheed Martin (NYSE: LMT).
The contracts awarded to RTX (NYSE: RTX) and General Dynamics (NYSE: GD) enabled Connecticut to rank seventh on the list. The state recorded $22.3 billion in DOD spending in the last fiscal year.
Defense contract obligations, grant awards and payroll spending in the 50 states and Washington, D.C., amounted to $558.7 billion, accounting for 2.2 percent of the U.S. gross domestic product.
Of the total DOD spending, $389.5 billion went to contracts for goods and services and $159.4 billion to salaries of DOD employees. The remaining $9.7 billion were spent on grants.
The dwindling federal COVID-19 response efforts resulted in a $10.1 billion drop in defense contract obligations and payroll spending in FY 2022, according to the report.
