Re: New Costs of War Report on Defense Spending and Jobs
Ellen Thomas
--Dear all,Costs of War released a new report today, by our colleague Heidi Peltier, that covers how the majority of the federal workforce involves militarized sectors, including the military, homeland security, and more. But military spending is inefficient for employment: spending on education and healthcare would create more jobs while reducing the federal budget, according to the new report.
The report was covered by Politico in the PoliticoPro morning newsletter (subscriber-only, so I've pasted it below my signature).
The analysis, an update to a previous report from 2023, reveals that military spending (including both federal defense spending and various private military industries) produces an average of five jobs per $1 million in spending, including both direct jobs and jobs in the supply chain. By contrast, 13 jobs are created for every $1 million in education spending – nearly three times as much employment. Healthcare spending creates 84% more jobs than military spending, while infrastructure and clean energy create from 24% to 64% more.
“In 2025 the federal government is making large cuts in personnel and spending in various programs that Americans value – including education, healthcare, environmental programs, public parks and lands, and many others,” writes Heidi Peltier, Director of Programs for the Costs of War project. “At the same time, the Trump administration is increasing the size of the federal budget by devoting more spending and resources to the military and homeland security, further exacerbating a disproportional federal budget and workforce.”
Federal spending on the Department of Defense accounts for half of all discretionary spending (49%) and more than half (60%) of federal employment as of the end of fiscal year 2024. Adding funding for the Departments of Homeland Security and Veterans Affairs, the military sectors make up almost two-thirds (61%) of the federal discretionary budget and 78% of the federal workforce (including both civilians and active-duty military). This is a seven percent increase in the militarized workforce since Costs of War’s previous report based on fiscal year 2022 data.
Of the 3,669,000 federal workers in 2024, 2,846,077 were employed in either DHS, VA, or DoD.
It is precisely because military spending is so exorbitant that so many jobs have been created in the militarized sectors of the federal government. However, a shift in funding from military to non-military programs would result in an increase in employment (since other programs are better job creators than the military) without an increase in the budget, concludes the report.
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Best regards,Stephanie
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Stephanie Savell, PhD
Director, Costs of WarSenior Fellow
Watson School of International & Public Affairs
Brown University401-585-0126
@stephsavell
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Sent: Tuesday, September 2, 2025 5:30 AM
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Subject: NDAA collides with Trump’s Washington crackdown
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Armed National Guard troops patrol the National Mall in Washington, D.C., on Aug. 26. | Bryan Dozier/Middle East Images/AFP via Getty Images
With Joe Gould, Paul McLeary and Daniel LippmanTHE BIG NEWS: The Senate, fresh from August recess, is diving into its keystone defense policy bill — must-pass legislation that could see a showdown over National Guard troops in the nation’s capital.
Happening today: The Senate takes an initial vote at 5:30 p.m. to advance the chamber's version of the NDAA. The bill is expected to clear the procedural hurdle, a precursor to a full debate and an early indicator of bipartisan support.
D.C. Guard debate: The NDAA — and its multibillion proposed defense budget hike — was approved by SASC with a near-unanimous vote in July. But that was before President Donald Trump deployed Guard troops to Washington and threatened to send them to other major American cities in what he calls a crackdown on crime.
Opponents warn the intervention is more of a distraction than an attempt to fight crime. They argue the move politicizes the military by blurring the lines between uniformed troops and domestic law enforcement.
Democrats — particularly local lawmakers — are expected to attempt to use the NDAA to try and blunt the troop presence. But it isn’t clear yet how much of a red line the issue will be for Democrats with other fights looming this month, including a potential shutdown.
Maryland Sen. Chris Van Hollen and Washington Del. Eleanor Holmes Norton plan to introduce legislation to grant the city control over its National Guard and police force. Both lawmakers' offices said they will offer the legislation as an amendment to their chambers' respective defense bills.
But the effort is a long shot. The GOP majority, wary of crossing Trump, will likely block a vote on those proposals or simply vote them down.
Recap: The legislation, which SASC approved in a 26-1 vote, is a significant rewrite of Trump's defense budget. The $914 billion bill endorses a $32 billion boost to the administration's national security budget. It pours billions more into shipbuilding, munitions production, military construction and fulfilling unfunded priorities outlined by the services.
The bigger topline underscores defense hawks’ frustrations that the Trump administration is relying on the recently signed megabill to boost military spending instead of increasing the regular budget. That contrasts with the House, which stuck with the administration's $882 billion national defense topline.
Other fights: The NDAA is typically a multiweek debate in the Senate. But several other partisan fights could take center stage and upend it. Republicans want to change the rules to more quickly confirm Trump’s nominees. This would serve to counter Democrats who are dragging out the confirmation process in protest of numerous administration picks.
Lawmakers will also pivot to spending as an Oct. 1 deadline to fund the government approaches. Trump’s latest bid to unilaterally cancel $5 billion in foreign aid will further complicate the shutdown fight.
Across the Capitol: House GOP leaders are getting ready to send their version of the NDAA to the floor next week. Lawmakers have filed more than 1,000 amendments ahead of the anticipated debate, which the House Rules Committee will sift through.
On Guard: Chicago mayor says National Guard must unmask if deployed, urges Trump to ‘stand down,’ per POLITICO's Shia Kapos.
Mission creep: Military support to law enforcement is supposed to be temporary. DOD is making it a core mission, Defense One reports.
Shutdown showdown: Government shutdown looms as Congress returns after monthlong August recess, via The Associated Press.
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On The Hill TAIPEI’S TORCHBEARERS: Two senior SASC Republicans capped off a high-stakes visit to Taiwan with pledges of congressional support for the self-governing island.
Taiwan team-ups: SASC Chair Roger Wicker called Taiwan a “free country” with the right to stay that way. The pointed language differed from the Trump administration’s more cautious line and defied Beijing’s warnings that the island is a renegade province. Wicker said he expects U.S.-Taiwan joint production on weapons. Sen. Deb Fischer, SASC’s No. 2 Republican, also joined him on the trip.
NDAA nexus: Wicker’s NDAA directs DOD to initiate a program with Taiwan to co-produce drone and counter-drone systems. It authorizes $1 billion in security assistance for Taipei and encourages the Pentagon to invite Taiwan’s navy to participate in Rim of the Pacific, a major regional exercise.
Senate signal: The Republican leader’s show of engagement comes amid the Trump administration’s evasion of Taipei. The administration denied Taiwan’s president a routine transit stop in the U.S., hit the island nation with a 20 percent tariff and focused heavily on striking a trade deal with China.
2026 shockwaves: Joni Ernst won't seek reelection to Senate in 2026, sources say, per CBS News.
Also: Duke Cunningham, war hero turned corrupt congressman, dies at 83, via The San Diego Union-Tribune.
Programs and Policy FIRST IN MD — DOD BUCKS ≠ BANG: Military spending creates far fewer jobs than government investments in healthcare or education, according to a report out today that Morning Defense snagged early.
Talking points: Brown University’s Costs of War project found that every $1 million in Pentagon and defense industry spending supports about five jobs, compared with 13 in education and nine in healthcare. Spending on infrastructure and clean energy each produce roughly seven jobs per $1 million.
The authors argue that defense spending has greater “leakage” outside the local or domestic economy. That’s because some military spending is used to buy goods from international suppliers or maintain a troop presence overseas.
Why it matters: The report comes as Congress readies for its annual spending debates. The authors noted that the Pentagon, at the end of fiscal 2024, accounted for about half of federal discretionary spending and 60 percent of federal employment.
FIRST IN MD — PROMOTIONS DELAYED: Defense Secretary Pete Hegseth is weeks late to sign off on this year’s slate of Army Reserve lieutenant colonel promotions, our Daniel Lippman writes in.
The details: The promotion board for these new roles closed in early February, according to data from the Army Human Resources Command obtained by Daniel. That started a six month clock for the Defense secretary to approve Army officers’ promotions or determine that a delay is needed. But the secretary’s office has yet to approve such a list. The Biden administration last year released its list of similar promotions by May 2024.
An HR Command official said that it’s taking longer than usual since there are new people working for Hegseth.
‘Detrimental’: Another officer awaiting promotion told Daniel that the delay “has been detrimental to unit readiness and effectiveness.”
The person — who, like the other official, was granted anonymity to discuss internal issues — said officers can’t make key personnel or other decisions since they aren’t certified in their new rank. “This is a typically rapid administrative action that has taken over six months,” the officer said.
A Pentagon spokesperson referred comments to the Army. Bill Costello, an Army Human Resources Command spokesperson, said the service anticipates releasing the list by Sept. 11.
Name game: White House Moves Forward on Plans for a Department of War, reports The Wall Street Journal.
Space and Tech FIGHT FOR YOUR RIGHT TO DATA: The Aerospace Industries Association and National Defense Industrial Association are hosting their annual forum this week on the know-how behind U.S. weapons — just as the debate over who should control it heats up.
On tap: The annual Technical Data Rights Forum on Wednesday and Thursday will include congressional staff and lawyers from DOD, Boeing, Lockheed Martin, Honeywell and Microsoft. Panels will explore artificial intelligence, additive manufacturing and a rewrite of the federal acquisition regulations.
Big picture: Industry sees intellectual property as its crown jewel. Some military officials and lawmakers argue the government needs more access to keep operating weapons and equipment affordable. A bipartisan push to give troops a “right to repair” their gear with tools and data held by contractors is the latest flashpoint.
Making Moves Stuart Holliday will be senior vice president and chief of public affairs officer at Lockheed Martin. He is CEO of Meridian International Center.
HII promoted Eric Chewning to the new post of executive vice president of marine systems and corporate strategy. Chewning, who joined the shipbuilder in 2023, was chief of staff for Defense Secretaries Mark Esper and acting Defense Secretary Pat Shanahan and led industrial base policy at the Pentagon during Trump’s first term.
Mariana Adame de Vreeze is now chief of staff for HASC member Maggie Goodlander. She most recently was deputy chief of staff for Rep. Nanette Barragán and is a Biden White House alum.
The future of defense includes space. From missile warning systems to spectrum management and integrated multi-domain operations, space is increasingly central to U.S. security strategy. POLITICO Pro’s new Space newsletter delivers policy intelligence that helps government affairs and procurement teams track how Washington is shaping the national security space mission. How to subscribe: Go to Account Settings → Select Defense → Then POLITICO Pro Space.
On tap this week On Tuesday, at 10 a.m. the Air Force Association's Mitchell Institute for Aerospace Studies holds a virtual discussion on airpower and the Pacific theater with Gen. Kevin Schneider, commander of Pacific Air Forces.
At 4 p.m., the Atlantic Council convenes a virtual seminar on "Envisioning the Threat to Taiwan: A Cross-Strait and Beyond Seminar."
On Wednesday, at 9 a.m. Defense News kicks off its daylong annual conference.
At 10 a.m. the Senate Commerce Committee holds a hearing on "Why Congress and NASA Must Thwart China in the Space Race.
At 10 a.m., the House Homeland Security Committee marks up pending legislation.
At 10 a.m., SFRC holds a confirmation hearing for several State Department nominees.
On Thursday, at 9 a.m. the Center for Strategic and International Studies hosts a panel discussion on "China's Military on Parade."
At 2 p.m., a Hudson Institute panel event discusses Taiwan’s cyber defenses with Rep. Rob Wittman.
On Friday, at 10 a.m. the Mitchell Institute holds a virtual discussion on Air Force capacity and readiness challenges.
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