UPDATE: New data reveals that military spending constitutes 22.2% of San Diego County’s economy, supporting nearly 357,000 local jobs and generating $61.3 billion in economic impact. The 2025 Military Economic Impact Report, released earlier today, highlights a 3% decline from 2024 due to federal budget cuts, emphasizing the urgent need for attention on defense funding.
The report, issued by the San Diego Military Advisory Council (SDMAC) and the UC San Diego Rady School of Management, underscores the critical role of the defense sector in the region. Defense spending accounts for $39.3 billion in direct contributions, with $19.8 billion awarded in contracts to over 2,000 companies. Furthermore, payroll for active-duty, reserve, and civilian personnel reached $15.1 billion, while retirement and veterans’ benefits climbed to $4.3 billion.
“This report reiterates that San Diego’s defense community is a vital force in our economy,” stated Lisa Ordoñez, dean of the Rady School. She emphasized the ongoing collaboration with SDMAC as a commitment to bolster insights that support service members and their families.
The report indicates that defense-related jobs comprise more than one in five positions in the area, with 143,000 active-duty and civilian personnel directly employed, and an additional 214,000 jobs supported indirectly through contracting and local business activities.
Michael Meyer, faculty lead for the report, remarked, “Despite shifts in federal budgets, the data shows the resilience and interconnectedness of the defense sector with our workforce and technology ecosystem.”
David Boone, president and CEO of SDMAC, emphasized the importance of the report for local decision-makers. “It is crucial for understanding the defense sector’s impact on national security, local innovation, and workforce development,” he said.
As federal spending patterns continue to evolve, the report concludes that the defense sector remains a stable and forward-looking engine for growth in San Diego. The implications of these findings are significant for policymakers and residents alike, as the economic landscape continues to shift.
Next Steps: Stakeholders in San Diego should closely monitor upcoming federal budget decisions that could further impact military spending and the local economy. The continued collaboration between SDMAC and the Rady School will be pivotal in addressing these challenges and opportunities in the future.
For real-time updates, follow local news sources and engage with community discussions about the implications of military spending in San Diego.
