The Department of Defense (DOD) has defense contracts in every state. In 2021, the DOD had $703.7 billion, equaling 3.3% of the country’s GDP. Its spending by state ranged from as little as $393.6 million in Wyoming to $49 billion in California. Although the Department of Defense does have contracts in every state, nearly 60% ($239.7 billion) of its spending went to 10 states.
The states with the largest contract totals from the Department of Defense are California, Virginia, Texas, Maryland, Florida, Washington, Connecticut, Georgia, Pennsylvania, and Alabama. Virginia and Maryland have a proximity advantage -- both sharing borders with Washington, DC, and with the Pentagon being located in Virginia.
Fairfax County in Northern Virginia is approximately 5 miles from the Pentagon. It is the county with the largest defense contract total ($13.7 billion). Other leading counties are Tarrant County in Texas, San Diego County in California, Kings County in Washington, and St. Louis County in Missouri.
Lockheed Martin, Boeing, and Raytheon are all USQBC Members and are among the top 10 for companies with the largest defense contracts in the US.