Military spending in Louisiana led to $17 billion being infused into the statewide economy during the 2024 fiscal year, according to an analysis by Louisiana Economic Development (LED).
The study was conducted by Business Development Advisors and The Roosevelt Group for Louisiana Economic Development and the Louisiana Military Advisory Council, examining military installations, defense contracts, and retiree and veteran spending to measure economic impact within LED’s eight defined regions.
This new data shows a 77% increase in total output and a 52% increase in employment compared to the same study last conducted in 2021. State officials point to the numbers as a representation of how Louisiana’s defense economy is attracting investment and creating jobs, in sectors including advanced manufacturing, aerospace and technology.
Military and veteran-related spending generated approximately $707 million in state and local tax revenue in FY 2024.
Officials with LED and the Louisiana Department of Veterans Affairs jointly told Military.com that military and veteran-related spending generated approximately $707 million in state and local tax revenue in FY 2024. Those dollars circulate statewide as wages, business revenues and tax collections that support infrastructure, small businesses and community development.
“Both agencies recognize that these impacts extend well beyond military installations and contractors, driving growth in local economies and improving opportunities for residents statewide,” officials said.
Hundreds of Thousands Impacted
The more than $17 billion generated during FY 2024 is connected to more than 117,000 employees, equating to approximately 5.4% of total state payroll employment according to the study.
“Louisiana’s military presence is a source of strength for every region of our state,” LED Secretary Susan B. Bourgeois said in a statement. “The men and women who serve, the contractors who support them and the veterans who continue to contribute after service all play a vital role in our success.”
The defense contracting analysis incorporates FY 2024 Department of Defense and U.S. Coast Guard contracts, which generated more than $3 billion worth of projects performed in 2024.
Annual gross pay associated with military retirees and federal Veteran Affairs (VA) expenditures, plus VA contracts, were also accounted for to comprise the analysis.
Over 26,000 Military Retirees
Louisiana has approximately 262,000 veterans who receive federal financial aid in the form of compensation, pensions and medical care—income that, similar to that of the state’s approximate 26,000 military retirees, is reinfused back into Louisiana’s economy through the tax base, living expenses and personal spending.
The Louisiana military facilities and activities studied as part of the 59-page analysis include Barksdale Air Force Base, Fort Polk, Naval Air Station Joint Reserve Base (Belle Chasse), Marine Forces Reserve, U.S. Coast Guard 8th District, Naval Information Warfare Center New Orleans, the 377th Theater Sustainment Command, and the Louisiana National Guard.
Of Louisiana’s five military installations, Meginley said Fort Polk in Leesville is especially a major driver of the economy in the central portion of the state.
“The GDP that military spending has for just that part of the state is 16%,” Meginley said, according to the Louisiana Radio Network. “You can’t really put into words just how important the military is to the economy of central Louisiana.”
More Contracts
LED said that more recent investments in Louisiana’s defense industry further back up the data and economic contributions to the state.
Louisiana-based Bollinger Shipyards, for example, was awarded a U.S. Navy contract to construct six Arctic Security Cutters at its facilities in Lockport. VRC Metal Systems is investing in a new maintenance facility at Barksdale Air Force Base, said to provide advanced repair capabilities for B-52 aircraft while creating high-skilled engineering and technician jobs.
“Louisiana is competing and winning in the defense economy,” Louisiana Gov. Jeff Landry said in a statement. “Our shipyards, bases and defense companies are creating jobs, driving innovation and powering growth in every region of our state.”
