Military spending in Hawaiʻi tops $10 billion

Military spending in Hawaiʻi reached $10.2 billion in 2023, accounting for approximately 9.2% of the state’s gross domestic product, according to a report released Wednesday by the State of Hawaiʻi Military and Community Relations Office.

The Military in Hawaiʻi Economic Impact Factbook is the first statewide publication from the office dedicated to defense economic data. The report arrives as state and federal officials continue discussions regarding military land use, modernization and economic diversification.

Defense activity contributed an estimated $16.6 billion to the statewide economy when including direct, indirect and induced effects. The report estimates that 17% of all jobs in the state are tied to defense spending.

Of the total $9.62 billion in personnel spending statewide, the vast majority was concentrated in the City and County of Honolulu, which saw $5.6 billion. The military supports 73,072 personnel across the islands, including 43,118 active-duty service members.

Local businesses also saw significant participation in federal contracting. Small businesses received $1.3 billion in US Department of Defense contracts. Within that total, $233 million went to Native Hawaiian Organization-owned firms, $199 million to veteran-owned businesses and $190 million to woman-owned businesses.

Laurie Moore, executive director of state military office, said the resource is intended to support community-centered conversation.

“It provides a clear, factual foundation for Hawai‘i’s communities, leaders and partners to understand what the military means for our economy and for the people who live here,” Moore said. “Beyond the spending figures are tens of thousands of service members, veterans, civilian workers, educators, small-business owners and families whose lives are interwoven with Hawai‘i’s story.”

The report also details non-direct economic contributions, such as public school impact aid, environmental stewardship and cultural programs.

“This is one of the most consequential planning periods in decades,” Moore said. “Shared facts help us build trust. They strengthen relationships. And they help ensure that community voices play a meaningful role as Hawai‘i navigates important decisions, modernization needs and long-term economic diversification.”

Established in 2024, the state Military and Community Relations Office is located within the Department of Business, Economic Development and Tourism. The office is tasked with coordinating communication between the state, military partners and the public.

The full report is available on the agency’s website.