Global military spending hits $2.89 trillion despite U.S. decline

Even as U.S. military spending fell sharply after Washington froze new financial aid for Ukraine, the world’s arms bill kept climbing, reaching $2.887 trillion in 2025 and marking an 11th straight annual increase. The latest figures from the Stockholm International Peace Research Institute show a global military buildup that is no longer being driven by any single capital, but by simultaneous surges across Europe and Asia.

Europe accounted for the largest jump. Military spending there rose 14 percent in 2025 to $864 billion, as governments moved to replenish stocks drained by the war in Ukraine, meet NATO pressure to rebuild inventories and brace for a security environment that is worsening across Europe, the Middle East and Asia. Spending in Asia and Oceania also rose, climbing 8.1 percent in a sign that regional military competition is continuing to intensify even as some conflicts cool elsewhere.

The United States still spent more than any other country, but its outlays fell to $954 billion, down 7.5 percent from 2024. SIPRI said the decline was driven primarily by the absence of new financial military assistance for Ukraine during the year, after no new funding was approved. That was a sharp reversal from the previous three years, when the United States approved a total of $127 billion in aid. Even so, the dip may prove temporary, with congressional spending already approved for 2026 and the possibility of larger sums in 2027.

Together, the United States, China and Russia accounted for $1.48 trillion, or 51 percent of all global military spending. That concentration shows how dependent the international security order remains on a handful of major powers, even as middle powers and alliance blocs push budgets higher. Global military spending also rose to 2.5 percent of world GDP, the highest level since 2009, underscoring how deeply rearmament is now embedded in national budgets.

Not every region moved upward. Israel’s military spending fell 4.9 percent to $48.3 billion as the Gaza war wound down in 2025, while Iran’s budget fell 5.6 percent to $7.4 billion for a second consecutive year. But SIPRI’s broader pattern is still one of escalation: 2024 had already set a record at $2.718 trillion, up 9.4 percent from 2023, and 2025 extended that run. The result is a world where Washington can pull back on one front, yet still struggle to shape the wider security agenda as Europe, Asia and other regions lock in higher spending baselines for years ahead.