Policy Document Series · Issue 9 of 35 · America & the World
Military &
Defense Spending
Cut Waste, Fund Capability

The United States spends more on defense than the next nine countries combined and cannot pass a basic financial audit. We cut contractor bloat, retire failed programs, and reinvest in what the military actually needs — munitions, submarines, drones, and cyber. This is the most pro-military position possible.

$997B Defense budget — 37% of all military spending on earth
Consecutive years the Pentagon has failed its financial audit
$4.65T Assets the Pentagon cannot verify or account for
54% Of the Pentagon budget sent directly to private contractors
Contents
Section 01

Executive Summary

The United States spends more on defense than the next nine countries combined — nearly $1 trillion per year — yet the Pentagon has failed its financial audit eight consecutive years and cannot account for $4.65 trillion in assets. The Common Good Party demands fundamental reform: a 15–20% targeted restructuring that eliminates waste, failed programs, and contractor bloat while reinvesting in the capabilities the military actually needs.

This is not anti-military. This is the most pro-military position possible. A military that runs out of cruise missiles in a month of real combat, that pays contractors billions for aircraft that fly half the time, and that spends $93 billion in September because the money will expire — that is not a strong military. Accountability and efficiency make the military stronger.

🔍
The Audit Requirement
Pentagon must pass a clean audit before any budget increase. Hard requirement, no exceptions. Budget freeze if the 2028 deadline is missed.
✂️
15–20% Targeted Restructuring
$81–161B annually from base closures, contractor reform, legacy program retirement, procurement modernization, and overhead reduction.
🚀
Reinvest in Real Capability
Munitions surge, submarine industrial base, mass drone production, Indo-Pacific infrastructure, cyber and space capabilities.
🏘️
BE SMART Communities
Communities losing legacy programs receive replacement investment at 110%, wage insurance, and hiring preferences — no one is abandoned.

Veterans are sacred and untouchable. Every dollar not reinvested in military capability goes to VA healthcare and veteran suicide prevention. Full PACT Act funding with no caps.

Section 02

The Problem

American defense spending is characterized by three structural failures: an inability to account for where the money goes, a procurement system captured by contractor interests, and a political system that protects programs based on jobs rather than military necessity.

Scale of Spending
The United States spent $997 billion on defense in 2024 — 37% of all military spending on earth, more than the next nine countries combined.
Zero Accountability
The Pentagon has failed its financial audit eight consecutive years and cannot verify $4.65 trillion in assets. It pays $178 million per year for a failing audit result.
Contractor Capture
54% of the Pentagon's discretionary budget goes to private contractors. The top five contractors alone collected $771 billion over five years (2020–2024).
"Use It or Lose It"
In September 2025 alone, the Pentagon spent $93.4 billion on contracts in a single month — including $50.1 billion in the final five working days — driven by a culture that rewards waste over efficiency.
F-35 Failure
Lockheed Martin collected $1.7 billion in incentive payments for the F-35 despite the aircraft flying only 50% of the time. The Block 4 upgrade is $6 billion over budget and five years late.
Sentinel ICBM
The Sentinel ICBM replacement hit $141 billion — 81% over its original estimate — triggering a Nunn-McCurdy critical cost breach while consuming Air Force modernization funds.

Sources: SIPRI Military Expenditure 2024 · POGO — Pentagon Audit Fact Sheet · Quincy Institute — Profits of War · OpenTheBooks — September Spending · Defense News — F-35 Readiness

Section 03

How We Got Here

The military-industrial complex Eisenhower warned about has become a self-reinforcing system. Contractors lobby for programs the Pentagon does not want, Congress funds them because the jobs are in their district, and no one can tell taxpayers where the money went because the Pentagon literally cannot pass a basic financial audit.

The Pentagon cannot account for its own money. The GAO has listed DoD financial management as "high risk" since 1995. In 2018, the Department of Defense conducted its first-ever agency-wide financial audit — and failed. It has now failed seven consecutive annual audits (2018–2024). The DoD Office of Inspector General has identified $4.65 trillion in assets that cannot be properly accounted for. No other federal agency has ever failed a single audit at this scale. The Pentagon fails one every year — and faces no consequences.

The revolving door drives the system. The defense sector has employed 2,700+ revolving door lobbyists since 2001. POGO documented 645 instances in a single year of top defense contractors hiring former senior government officials, military officers, or members of Congress — nearly 90% became registered lobbyists. Pentagon officials approve contracts, retire, take jobs at the contractor, and lobby their former colleagues for more contracts.

The procurement system produces absurdity at scale. Boeing charged a 7,943% markup on C-17 soap dispensers. The Air Force paid $7,622 for a coffee maker (2018, documented by Sen. Grassley). TransDigm, a sole-source parts supplier, was found by the DoD Inspector General (2019) to charge markups averaging 3,800% on spare parts. The F-35 program costs $2.1 trillion over its lifetime — 93% over original per-aircraft estimates — yet flies only 50% of the time. The Littoral Combat Ship, dubbed "the Little Crappy Ship" by the Navy itself, wasted $700 million on a mine-hunting subsystem that never worked, yet Congress blocked its retirement to save 1,850 jobs.

The political incentive is explicit. Lockheed Martin builds the F-35 across 45 states, making it politically impossible to cancel regardless of performance. Senators who voted against a 10% spending cut in 2023 received an average of $237,873 from defense contractors — nearly three times the $82,585 received by those who voted for it.

Sources: OpenSecrets — Defense Revolving Door · POGO — Brass Parachutes · CBS News — Soap Dispenser Markups · GAO — DoD Financial Management High Risk · DoD OIG — Financial Audit · Sen. Grassley — Coffee Maker Waste · DoD OIG — TransDigm Markups

Section 04

What Other Countries Do

Global military spending reached $2,718 billion in 2024, with the United States accounting for 37% of the total. No other democratic nation operates with the level of financial opacity or contractor dependency that characterizes the American system.

Country 2024 Spending % of GDP % of World Total
United States $997B 3.4% 37%
China (est.) $314B 1.7% 12%
Russia (est.) $149B 7.1% 5.5%
Germany $88.5B 1.9% 3.3%
India $86.1B 2.3% 3.2%
United Kingdom $81.8B 2.3% 3.0%
Next 9 combined ~$984B ~36%

2025: All 32 NATO members met the 2% GDP target for the first time. European NATO plus Canada reached $574 billion — up 20% in real terms. Poland leads at 4.2%. Germany finally reached 2%. The lesson: allies are now pulling their weight, creating the conditions for responsible US restructuring without weakening collective defense.

The hollow force warning. Europe's post-Cold War defense cuts are a cautionary tale: the Netherlands sold all its tanks, Germany went from 7,000 tanks to roughly 200, Denmark had no heavy artillery. Russia's 2022 invasion exposed how unprepared these cuts left the continent. Our approach is targeted restructuring — not across-the-board sequestration that creates hollow forces.

Sources: SIPRI 2024 Data · Defense News — NATO 2% Target

Section 05

Our Policy

The Common Good Party restructures defense spending through five integrated components: the audit requirement, targeted 15–20% cuts, reinvestment in actual capability, the BE SMART community transition program, and contractor reform.

Part 1

The Audit Requirement

No budget increase before a clean audit. No exceptions. If the Pentagon fails its 2028 audit deadline, its budget is frozen at the prior year's level (inflation-adjusted only) until it passes. No supplementals. No reconciliation workarounds. The Sanders-Grassley penalty applies: any Pentagon component that fails its individual audit returns 1% of its budget to the Treasury.

Temporary Defense Audit Authority (TDAA): Independent office outside the Pentagon chain of command. Subpoena power. 4-year mandate. Staffed by forensic accountants, not Pentagon insiders. Subject to Universal Mandatory Duty to Act.

Permanent Internal Audit System: Modeled on the Marines' successful approach, scaled with modern technology and AI-assisted auditing as mandated by the FY2024 NDAA. Subject to Universal Mandatory Duty to Act.

Budget Freeze on Failure: Miss the 2028 deadline: budget frozen at prior year's inflation-adjusted level. No supplementals. No workarounds. The freeze lifts only when the audit is passed.

Public Transparency: The Pentagon pays $178M per year for a failing audit. Results published publicly with plain-language summaries. Every dollar of that $178M appears in the report.

Part 2

The 15–20% Restructuring

New BRAC round: $12–20B savings — close 22% excess domestic capacity; consolidate Cold War overseas bases.

Contractor reform: $15–25B savings — competitive bidding; end sole-source; cap markups; bring high-cost jobs in-house.

Legacy program retirement: $10–20B savings — retire programs Pentagon requested to end (LCS, A-10, excess Abrams).

Sentinel ICBM restructure: $4–6B/yr savings — extend Minuteman III; evaluate sea-based deterrence sufficiency.

Carrier force optimization: $4–8B savings — reduce from 11 to 9 carriers over 15 years; reinvest in submarines.

"Use it or lose it" reform: $10–15B savings — allow 5% carryover; end $93.4B September spending sprees.

Overhead / HQ reduction: $8–12B savings — reduce civilian workforce grown 100,000+ since 2001; consolidate HQ.

Procurement reform: $5–10B savings — commercial purchasing standards; end cost-plus contracts.

F-35 accountability: $3–5B savings — withhold fees for late/underperforming deliveries; reduce buy quantities.

Total restructuring: $81–161B — approximately 9–18% of total DoD budget.

Part 3

Where Savings Go

Munitions Surge: Rebuild depleted Tomahawk, SM-6, THAAD, and Patriot inventories. 850+ Tomahawks were fired in one month of real combat versus 34 produced in all of 2024. That gap is unacceptable.

Submarine Industrial Base: Workforce training and shipyard modernization to reach 2.0 Virginia-class per year. Current rate: 1.13/year. The Indo-Pacific deterrence strategy depends on submarines, not carriers.

Mass Drone Production: Scale the Replicator program from $1B/year to $10B+/year. Adopt Ukraine's rapid-iteration model — cheap, disposable, effective. The future of warfare is distributed and unmanned.

Indo-Pacific Infrastructure: Build out EDCA bases in the Philippines. Clear Taiwan's $21.5 billion arms backlog. The deterrence gap in the Pacific is a direct result of delivery failures, not insufficient budgets.

Cyber & Space: Offensive cyber capabilities and resilient satellite architecture. Restore domestic supply chains — TNT production, rare earth processing. The next war's terrain is digital and orbital.

Veterans — Every Remaining Dollar: Every dollar not reinvested in military capability goes to VA healthcare and the veteran suicide crisis. Non-negotiable. Veterans are the obligation that precedes all others.

Part 4

BE SMART — Community Transition Program

Base Economies Strategic Modernization and Retraining Transition — removes Congress's incentive to protect failed programs by guaranteeing that communities losing legacy defense jobs are first in line for replacement investment. No community is abandoned. The jobs change — from building ships that don't sail to building drones that work.

Objective criteria for phase-out: Pentagon requested retirement, 15%+ over budget, mission fulfilled, or availability below 60%.

Priority Investment Designation: New defense manufacturing, clean energy, federal research facilities, infrastructure.

110% replacement funding: Communities receive more during transition than they got from the old program for three years.

Wage insurance: 80% of previous salary for up to two years during retraining.

Hiring preferences: New defense programs in BE SMART communities hire locally first.

Map affected communities before any retirement announcement — transition plan comes first.

Part 5

Contractor Reform

5-year revolving door cooling-off period for senior DoD officials and general/flag officers (currently 2 years). 10-year lobbying ban for former members of Congress on defense matters. Full public disclosure of all post-government defense industry employment. Performance-based contracting — no incentive payments for late or underperforming deliveries. Competitive bidding mandate. Markup caps: no more 7,943% soap dispenser pricing.

Part 6

Veterans — Untouchable

Full PACT Act funding with no caps — covering toxic exposure from burn pits, Agent Orange, and radiation. Target zero veteran suicides through universal access, same-day mental health appointments, and community outreach to the 61% not currently reaching VA care. Continue veteran homelessness reduction toward functional zero — down to 32,882 from 76,000 in 2010. Under single-payer (Issue 1), veterans gain seamless access to the entire healthcare system, eliminating facility-based wait time barriers entirely.

Part 7

Diplomacy Restoration

Restore USAID as an independent agency and rebuild foreign aid to pre-2025 levels after 57% cuts. Rebalance the 32:1 defense-to-diplomacy ratio — preventive diplomacy is orders of magnitude cheaper than military intervention. The $8+ trillion cost of post-9/11 wars is what happens when you choose military action over diplomatic solutions.

Sources: CAGW — BRAC Excess Capacity · GovExec — Contractor vs. Federal Costs · National Security Journal — Virginia-Class · Cato — Taiwan Arms Backlog · POGO — Brass Parachutes · VA — Homelessness Data · Al Jazeera — USAID Cuts · Brown University — Costs of War

Section 06

How We Pay For It

This is not a budget cut — it is a restructuring. Eliminating waste generates savings that fund both genuine military capability and domestic needs. Net savings flow to VA healthcare, veteran suicide prevention, diplomacy restoration, and deficit reduction.

Component Fiscal Impact Notes
BRAC + base closures $12–20B savings Close excess domestic and Cold War overseas facilities.
Contractor reform $15–25B savings Competitive bidding, markup caps, bringing work in-house.
Legacy program retirement $10–20B savings BE SMART ensures communities get replacement investment.
Procurement + overhead $13–22B savings Commercial standards, cost-plus reform, HQ consolidation.
Reinvestment in capability $40–60B cost Munitions, submarines, drones, cyber, Indo-Pacific bases.
Net annual savings $20–100B Funds VA, deficit reduction, and diplomacy restoration.
Section 07

Implementation Timeline

Phase 1 — Day 1 to Month 6
Establish the Accountability Framework
Establish TDAA. Announce BRAC commission. Begin contractor audit. Impose performance-based contracting on all new awards. Extend revolving door to 5 years. Confirm full PACT Act funding.
Phase 2 — Month 6 to Year 1
Reform and Reinvestment Launch
End "use it or lose it" with 5% carryover reform. Begin legacy program phase-out under BE SMART. Launch munitions surge procurement. Restore USAID independence.
Phase 3 — Year 1 to Year 3
Structural Transformation
BRAC closures begin. Carrier force reduction plan enacted. Sentinel ICBM restructured. Submarine industrial base expansion underway. BE SMART communities receiving replacement investment.
Phase 4 — Year 3 to Year 5
Audit Deadline and Consolidation
Pentagon audit deadline (2028). Budget freeze triggers if failed. 15–20% restructuring complete. Drone production at $10B+/year. Indo-Pacific infrastructure operational. Veteran crisis targets met.
Section 08

Addressing Counterarguments

"You're weakening the military."
We are strengthening it. A military that cannot pass a financial audit, that flies its most expensive aircraft 50% of the time, that runs out of cruise missiles in a month of real combat, and that spends $93.4 billion in September because the money will expire — that is not a strong military. Accountability, efficiency, and investment in actual capability make the military stronger, not weaker.
"Defense cuts cost jobs."
The BE SMART program guarantees affected communities receive replacement investment at 110% of the legacy program's value. Workers get wage insurance at 80% for two years, hiring preferences for new defense programs, and priority access to clean energy and infrastructure investment. No community is abandoned. The jobs change — from building ships that don't sail to building drones that work.
"China is outspending us."
The United States spends more than three times what China spends on defense. The issue is not the total — it is how the money is spent. China is investing in missiles, drones, and naval expansion while America maintains Cold War base structures and pays contractors 7,943% markups on soap dispensers. Restructuring to match the actual threat is the pro-defense position.
"You can't cut carriers."
The plan reduces from 11 to 9 carriers over 15 years — through attrition, not scrapping. Meanwhile, we invest massively in submarines, distributed lethality, and unmanned systems. Carrier strike groups are increasingly vulnerable to hypersonic missiles; the future fleet needs to be more distributed, more lethal, and less dependent on floating targets the size of cities.
"The Pentagon needs more money, not less."
The Pentagon cannot tell you where the current money goes. It has failed its audit eight consecutive years. Giving more money to an organization that cannot account for $4.65 trillion in existing assets is not responsible governance — it is a blank check to the defense contractor lobby. Pass the audit first.
Section 09

Cross-References

Issue 1
HealthcareSingle-payer eliminates VA wait time barriers by giving veterans access to the full healthcare system — not just VA facilities.
Issue 2
TaxationProgressive tax revenue funds industrial policy that reduces reliance on defense spending as economic stimulus for local communities.
Issue 3
HousingHousing First applies to 32,882 homeless veterans. Veteran homelessness is a defense readiness issue as much as a social one.
Issue 4
EducationGI Bill reinforced by free public university. Veterans should not take on debt to access the education they earned through service.
Issue 7
Ukraine & NATONATO spending increases allow responsible US restructuring. Article 5 is non-negotiable. Burden-sharing creates fiscal space.
Issue 8
ChinaIndo-Pacific deterrence requires submarines, munitions, drones, and alliances — not blank checks. The Taiwan backlog is a national security emergency.

The accountability framework below summarizes how every element of the current system is reformed:

Principle Current System Our Reform
Financial accountability 8 failed audits, $4.65T unverifiable TDAA, budget freeze on failure, public reporting
Contractor oversight 2-year revolving door, sole-source contracts 5-year cooling off, competitive bidding, markup caps
Legacy programs Kept for jobs, not military capability BE SMART: retire programs, replace jobs
Investment priority Carriers, F-35, Sentinel ICBM Munitions, submarines, drones, cyber
Veterans 44-day wait for primary care Full PACT funding, zero suicides target, seamless access
"The United States spends more on defense than the next nine countries combined. It cannot pass a basic financial audit. It sends 54% of its budget to private contractors who collect billions for aircraft that fly half the time. We cut waste, invest in capability, protect every veteran, and demand accountability. This is not anti-military — this is being responsible with taxpayer money."
— The Common Good Party
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