Can The U.S. Afford Its Military Aid Promises?

CNBC
CNBC
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Published 2024-05-16
U.S. defense spending and military aid costs are adding up. President Joe Biden signed a $95 billion U.S. military aid package in April 2024, allocating funding to Ukraine, Israel, Taiwan and the Indo-Pacific region. This is on top of the National Defense Authorization Act of 2024, which authorized military spending of a record $886 billion. U.S. military spending and aid packages bolster the American defense industry. “People think we’re sending a big check to Ukraine”, Gregory Hayes, CEO of RTX, told CNBC’s “Squawk Box”. “The fact is what most of that money will do will go to support American defense industries here in the U.S."

The five largest U.S. defense companies, Lockheed Martin, RTX, General Dynamics, Boeing and Northrop Grumman, had Department of Defense contracts totaling more than $118 billion in fiscal year 2022. “There’s a lot of foreign countries that get aid from the United States that’s predicated upon using that aid to buy U.S. hardware,” said Ken Herbert, aerospace and defense analyst at RBC Capital Markets, told CNBC.

Watch this video to learn more about where the U.S. sends military aid and personnel and how defense spending impacts the world at large.

Chapters:
0:00 Introduction
1:44 Chapter 1 - Where the U.S. sends money
5:28 Chapter 2 - U.S. defense companies
8:37 Chapter 3 - Boots on the ground

Produced by: Shawn Baldwin
Edited by: Andrea Miller
Animation: Jason Reginato
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images

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Can The U.S. Afford Its Military Aid Promises?
All Comments (21)
  • @hourbee5535
    Now you know why so many Americans don’t have healthcare
  • @drury2d8
    They forgot to include the part of how much money is made on weapon sales and corporate kickbacks.
  • @khawajarashid7799
    Here’s our money. Now buy our products and give us our money back 😂
  • @ronch182
    Lol. "Police"?! Call it what it is, a security force for maintaining America's political interests and resources
  • @eagledefenseusa4799
    Israel has universal healthcare. The US does not, but could with all of the money our government sends overseas.
  • @FUTBOLis1
    Fun fact free college for all Americans would only cost 58 billion.
  • @Sonny111
    Can't even let us buy affordable chinese goods.
  • @bobsthea
    916 billion dollars for military yet tax cuts is more favourable for the riches and bussiness ? kinda weird isn't it
  • @avonfettydale9166
    But I thought the one time $1200 stimulus’s was too much money and caused inflation
  • @fawazsaeed5806
    The American people are tired of this BS money laundering!
  • @Mudcrop123
    The us needs to spend on its own people
  • @infantry101102
    Ohhhhh so because it goes to US defense contractors, that makes it ok? 😂
  • @Jurmyhyle12
    Why are we policing a world that doesn't even like us?
  • @ayomax7813
    It’s not about policing for peace it’s to control the currency 💵