UPDATE: The newly released **2025 Military Economic Impact Report** reveals that military spending accounts for an astonishing **22.2%** of **San Diego County’s** economy, contributing **$61.3 billion** and supporting nearly **357,000 local jobs**. This significant report was made public on **Wednesday** by the **San Diego Military Advisory Council (SDMAC)** in collaboration with the **UC San Diego Rady School of Management**.
This year’s findings show a **3% decline** from 2024, primarily due to recent federal budget cuts. Despite the downturn, experts stress the vital importance of the military sector in maintaining economic stability and growth in the region.
Lisa Ordoñez, Dean of the Rady School, emphasized, “San Diego’s defense community continues to be one of the most dynamic and stabilizing forces in our economy.” The report highlights **$39.3 billion** in direct defense spending, which includes **$19.8 billion** awarded in contracts to over **2,000 companies**.
Payroll for active-duty, reserve, and civilian employees has reached **$15.1 billion**, while retirement and veterans’ benefits have increased to **$4.3 billion**. This substantial financial footprint shows the military’s continued role as a cornerstone of the local economy.
Michael Meyer, Associate Teaching Professor at the Rady School and the report’s faculty lead, pointed out, “San Diego’s military presence remains a key driver of economic growth, innovation, and collaboration.” He reaffirmed that even with ongoing uncertainties in federal budgets, the defense sector is resilient and deeply embedded in the region’s workforce and technology ecosystem.
In total, the defense sector supports more than **one in five jobs** in San Diego, with **143,000** personnel directly employed and an additional **214,000 jobs** supported indirectly through contracting and local business activities.
David Boone, president and CEO of SDMAC and a retired Navy rear admiral, remarked, “This collaboration helps decision-makers in San Diego, Sacramento, and Washington, D.C. understand how critical the defense sector is — not only to national security but also to local innovation, workforce development, and quality of life.” Boone’s comments underscore the defense sector’s role as a stable and forward-looking engine of growth, even amidst evolving federal spending patterns.
As the landscape of military funding continues to shift, the implications of this report are crucial for stakeholders at all levels. The local community is urged to monitor these developments closely, as they will have lasting impacts on jobs, innovation, and economic stability in **San Diego**.
Stay tuned for more updates on this developing story.
