Report Projects Defense Spending to Continue to Climb

December 3, 2025

A forecast from the Professional Services Council projects defense spending to continue to grow by 2% annually over the coming years, according to the Federal News Network. The defense appropriations bill is likely to stay above $1 trillion, the report said.  

The projected increase comes alongside Defense Secretary Pete Hegseth’s acquisition reforms, which promises to draw in more non-traditional contractors to make private contracts the default for defense innovation.  

The forecast projects that non-defense programs will continuously see cuts. 

Pentagon photo by Shannon Knott 

December 3, 2025

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