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Who’s funding DC’s pro-war think tanks? 'Independent' experts push defence-contractor agendas

Former Pentagon official Michèle Flournoy sits on the board of former Google CEO Eric Schmidt’s defence-focused investment firm. Credit: Getty

Former Pentagon official Michèle Flournoy sits on the board of former Google CEO Eric Schmidt’s defence-focused investment firm. Credit: Getty


January 8, 2025   5 mins

Last year, the US Commission on National Defense Strategy published its final report, creating intense buzz in Washington. “The threats the United States faces are the most serious and most challenging the nation has encountered since 1945,” the report warned. To meet the challenge, “the US government needs to harness all elements of national power,” starting with a 5% boost to the Pentagon budget, currently at $886 billion.

Congress created the bipartisan commission as “an independent body.” Yet some of the members of the commission are connected to think tanks and the defence contractors that fund them: from Boeing to General Electric, Northrop Grumman to Lockheed Martin. If taxpayers go along with the military buildup advocated by the report, these and other firms stand to profit handsomely.

Private firms and foreign governments presenting their material interests as disinterested “expertise” — it should be a scandal, yet it’s taken for granted as just the way Washington works. We are told that we need bigger military budgets to defend the nation and serve as a reliable ally. That artificial intelligence is the future of the battlefield, and if we don’t beat Beijing at it, we risk world freedom. Ditto for space and the high seas and nuclear weapons and Silicon Valley-backed “defence tech.”

You have no doubt heard at least one variation on these themes in the last year. But did you ever ask why every “expert” seems to be saying the same thing? “Follow the money” has become cliché, but it is a useful place to start. Thanks to a new database created by the Quincy Institute (full disclosure: I work there), the consensus thinking in foreign policy can be traced, in part, to the powerful financial interests behind it.

Covering the period from 2019 to 2023, the tool permits users to track the money going to the top-50 Washington think tanks from the US government ($1.5 billion), foreign countries ($110 million), and private defence contractors ($34.7 million). Not all think tanks disclose their contributions, and many that do provide “minimum” ranges, so these totals are, if anything, conservative. An illuminating — and sordid — picture emerges when you filter who gets what and from whom, and match their substantive output over the last year on China, Ukraine, defence industrialisation, and nuclear deterrence.

“The Atlantic Council has received at least $10 million from major Pentagon contractors.”

Consider the Commission on National Defense Strategy. A few keystrokes reveal that the commission’s chairwoman, former Rep. Jane Harman (D-Calif), is a trustee at the Aspen Institute, which received more than $8 million over the last five years from 10 different governments, including the US government, and major contractors like Boeing, GE, General Dynamics, Battelle, and McKinsey & Co. She is also the former president (now distinguished fellow) at the Wilson Center, which took in more than $52 million over five years, including $51 million or more from the US government, plus undisclosed amounts from Northrop Grumman and Lockheed Martin.

At a Council on Foreign Relations event to launch the report, Harman said: “It’s the United States public that has to start paying attention, because the goal is not to get into a more serious, horrible mess than we were in on 9/11, but to deter that and to put together the will to finance a larger budget and pay for it that involves all elements of national power, so we don’t get into that mess.” As it happens, CFR itself received more than $2 million from many of the same Pentagon contractors.

Another commissioner, Tom Mahnken, is the president and CEO of the Center for Strategic and Budgetary Assessments. In the wake of the report’s publication, he wrote a piece for Foreign Affairs headlined, “A Three-Theater Defense Strategy: How America Can Prepare for War in Asia, Europe, and the Middle East.” To Mahken’s mind, Washington should expand its military footprint abroad and pump out weapons to foreign allies and partners. “As the [NATO] alliance’s central member and main security provider, the United States must be able to meet the needs of both its own and its allies’ armed forces. To do so, the US government should provide defense companies with the kind of steady demand needed to boost production.”

Foreign Affairs identified Mahnken by his title but didn’t disclose that CSBA gets money from all the countries that he argued need US weapons, including Japan, Taiwan, Australia, Britain, Poland, and Germany. Mahnken’s think tank has also received numerous grants from the US Marines, Air Force, and Navy, and from most of the top-five contractors. According to the Quincy database, the CSBA doesn’t disclose specific amounts.

The commission is far from a rare case. In November, the Center for Strategic and International Studies, or CSIS, published a report titled “Project Atom 2024: Intra-War Deterrence in a Two-Peer Environment.” At the event launching the report, co-author Christopher Ford — who works with the Hoover Institution and is the founder of Two Ravens Policy Strategy, a contractor — smiled as he said: “I myself am relatively comfortable with nuclear-weapons use compared to some of my fellow panelists. . . . I am quite prepared to take that step should we need to do so.”

The report itself calls for expanding the US strategic arsenal. As it happens, the launch event was sponsored by Northrop Grumman, maker of the new Intercontinental Sentinel Ballistic Missile. The cost for the controversial missile has grown 81% over the last two years and is now expected to reach more than $140 billion to develop — or $214 million per missile.

CSIS, the think tank that published Ford’s report, has received at least $500,000 from Northrop Grumman since 2019. Its total intake from defence contractors was more than $4.1 million.

The Atlantic Council recently published its own nuclear report, titled “‘First, We Will Defend the Homeland’: The Case for Homeland Missile Defense,” which called for boosting funding for missile-defense technologies “to a full 1 percent of the annual defense budget.” The Atlantic Council has received at least $10 million from major Pentagon contractors that manufacture nuclear weapons and missile-defense systems, including BAE Systems, Boeing, Lockheed, General Dynamics, Northrop Grumman, and RTX (formerly Raytheon).

But there is perhaps no issue better primed for the think-tank racket than “AI innovation.” There are so many reports paid for by vested interests, commissions on which they sit, and governments getting their piece, it’s hard to keep track.

Some benefit more than others. Consider Michèle Flournoy, a former Pentagon official who founded the Center for New American Security and sits on its board. CNAS published a report in September titled “Integration for Innovation” as part of its “defense technology task force.” Executives from RTX (which contributed at least $450,000 to CNAS), Lockheed Martin ($600,000), Palantir ($175,000), Leidos ($300,000), and Booz Allen ($250,000) all directly contributed as members of the task force, even as they benefit from every single proposal in it.

How can a think tank purport to be independent when they are explicitly asking donor executives to produce their analysis?

As if all that weren’t incestuous enough, Flournoy is co-founder of WestExec Advisors, described by Washington Post scribe David Ignatius as trying “to bring smaller high-tech companies into the sometimes-overwhelming world of Pentagon procurement”; she has been banging the AI drum for years.

In a 2023 Foreign Affairs piece, Flournoy warned that the Pentagon would “never be able to attract as many AI experts as the private sector. The defense establishment must … deepen its conversations with technology companies…. It should also reduce some of the outdated barriers to tech firms doing business with the government.” Not disclosed by Foreign Affairs: Flournoy had served as an adviser to Shield AI, a startup trying to do business with the Pentagon, and is also on the board of former Google CEO Eric Schmidt’s America Frontier Fund, a defence-focused investment firm.

The Atlantic Council got in on the AI game earlier. It published its own Commission on Defense Innovation Adoption report last January. It, too, featured industry reps on a task force, whose companies, in turn, donate to the Atlantic Council, including Palantir (at least $600,000 to the council) and Booz Allen (at least $150,000). No surprise, the report concluded that the Pentagon “should increase incentives and reduce barriers for leading technology companies to do business” with the Department of Defense.

Then there is the foreign funding. In October, the Atlantic Council came out with a major report in favour of a controversial Saudi defense treaty with the United States. According to the report, “the combination of a strengthened regional air- and missile-defense network and a US defense pact with Saudi Arabia … would provide a strong deterrent against Iranian interests.” The Atlantic Council received more than $7 million from the United Arab Emirates and at least $400,000 from Saudi Arabia over the last five years.

To be sure, “follow the money” is never the entire story; ideology drives much of the policy in Washington, too. But it is worth noting much of the conventional wisdom in the capital is derived from base motivations.


Kelley Vlahos is a senior adviser to the Quincy Institute and editorial director of its online magazine, Responsible Statecraft.

KelleyBVlahos

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rob clark
rob clark
20 hours ago

Unfortunately, Washington DC never heeded President Eisenhower’s advice about the MIC given so long ago!

Naren Savani
Naren Savani
19 hours ago

This is an excellent article highlighting all the pigs feeding at the trough

mike flynn
mike flynn
8 hours ago
Reply to  Naren Savani

No, not ALL the pigs. Every cabinet dept. and subordinate agency has its own cadre of rent seekers.

Recall the story of planned parenthood getting $500 mil from US Govt, much of which is recycled back to DEM politicians as campaign money. Hundreds of similar situations.

Jerry Carroll
Jerry Carroll
16 hours ago

Hold on a minute. The outgoing transphile Biden administration (moving toward the door at a snail’s pace) told us the nation’s greatest threat is “white nationalism.” And now all of a sudden it’s crickets on that front.

Dougie Undersub
Dougie Undersub
15 hours ago

So, necessary defence spending helps the bottom line of defence contractors. Well colour me shocked.

Steve Jolly
Steve Jolly
14 hours ago

I am of two minds about this article. The author is of course correct that these ‘think tanks’ are basically just bought and paid for lobbyists with a thin veneer of intellectualism layered over the top. They’re not even close to objective, and it’s also not limited to defense. There are ‘think tanks’ and ‘research groups’ for other things as well. Big pharma funds all kinds of medical research showing the economic costs of various conditions and implying how valuable a treatment would be. The farm and agriculture lobby funds studies about food security and pests and most of the research that shows GMO foods are not a threat. Big energy companies have figured out they can profit from climate change hysteria through higher energy prices and subsidies for building new ‘green’ infrastructure that they then control. Just about every major industry has its own groups that do the equivalent of this for their own industry, and quite a few other groups funded by the super wealthy to push their ideologies. This is, as the author concedes, how the game is played. In addition to competing for funds, these various groups may also spar with each other over various policies which might benefit or harm their industries, which brings us to the topic at hand.

Part of the impetus for the retreat from unrestricted globalism has come from the MIC. They’ve calculated sometime over the past decade that they can profit more from selling more weapons to the US and others than they will lose in terms of higher costs that will come with a less globalized economy. More countries buying more weapons means more money flowing into American defense firms. There hasn’t been nearly as much opposition to Trump and populism from them than from other lobbying groups except on Ukraine for obvious reasons. They are clearly biased, but just because they’re biased it doesn’t necessarily mean they are wrong. In this case, I mostly agree with the MIC. Most people consider the money invested in defense and military technology during the Cold War to be money well spent because the US won that conflict and reaped considerable benefit. It was massive defense spending and a significant nuclear deterrent that helped prevent conflict. The other side didn’t believe it could win and no war was fought, though we came close.

China is an even greater threat than the Soviets, and they have many advantages the Soviets did not. If we want to prevent a conflict, the only alternative is to make war such a daunting prospect that even Chairman Xi checks his ambition. Further, there may come a point when the US faces a choice between giving Chairman Xi something he wants or going to war. Keep in mind the list of things Xi wants already includes Taiwan, the entire South China Sea, several small Japanese islands, and some of the disputed area from their war with India in 1979. What do we do if he just marches in and takes something then dares anyone to stop him? Do we just roll over and give him what he wants? How sure are we he won’t then demand something else. Do we just cede the entire Indo-Pacific region? These are serious questions we should all be asking. There hasn’t been an all-in war between major powers since 1945, and since 1991 there’s been no credible threat of one. There is now, and it’s something that has to be considered.

Whether our goal is to avoid such a conflict or win the conflict when it comes, the prescription is the same. If you want peace, prepare for war. The US can’t outproduce China. There is no prospect of catching up in terms of manufacturing in the short to medium term. What we can do is invest money in keeping the technology advantage we have. It pains me greatly to say so, but as corrupt and inefficient as the system has become, it’s the system we have, and circumstances are such that we need it now, not after taking a decade or two to invest in domestic manufacturing capacity, breaking up big companies into smaller and more innovative firms, and thoroughly reforming the system to eliminate corruption and graft. That needs to be done, but it will probably take more than a decade, and we don’t have that long.

Last edited 14 hours ago by Steve Jolly
Ex Nihilo
Ex Nihilo
11 hours ago

“It’s the United States public that has to start paying attention…”

The U.S. public will not be animated about this issue as long as 1) the military is staffed exclusively by volunteers who shoulder all the physical/emotional hazards of war thus insulating the majority of citizens from the human cost of combat and 2) the trillion dollar annual defense budget is funded with borrowed funny-money to keep taxes artificially low. In other words, most Americans have no (perceived) skin in the game. For them it is an abstraction appearing on their news feed that asks nothing of their courage nor purse.

Last edited 10 hours ago by Ex Nihilo
mike flynn
mike flynn
8 hours ago
Reply to  Ex Nihilo

Corollary to that statement is, institute the general draft and watch the MIC get dissolved by the electorate.

Andrew Holmes
Andrew Holmes
9 hours ago

This article uses the standard ploy; if you can’t refute the policy, ascribe low motives to its authors. And to them it appears that money is the only reason anyone proposes anything.

El Uro
El Uro
2 hours ago

Follow the money: the Quincy Institute, where the author works, got money from George Soros’ Open Society Foundations.
The Quincy Institute states that it is a nonprofit research organization and think tank that hosts scholars, participates in debates, publishes analysis pieces by journalists and academics, and advocates for a “less militarized and more cooperative foreign policy”. According to its statement of purpose, it is opposed to the military-industrial complex described by President Dwight D. Eisenhower in his farewell address.
Over the past four years, we saw the amazing results of this cooperative foreign policy.
.
Good job, ma’am

Last edited 2 hours ago by El Uro
Bill Kupersmith
Bill Kupersmith
21 hours ago

Ah yes, the Quincey Institute. Helping small nations resist bullies like Putin & Xi is now being ‘pro war’. Actually, it’s called collective security.

Christopher Michael Barrett
Christopher Michael Barrett
21 hours ago

According to Barack Obama, America had no strategic interest in Ukraine.

El Uro
El Uro
20 hours ago

Putin & Xi have

Cathy Carron
Cathy Carron
20 hours ago

‘Never cared for Obama, but he was correct and dealt with the Ukraine by only offering non-lethal aid. However Biden, a man who Obama is known to have characterized as a man who never fails to ‘fxuck thinks up”, has shoveled $185 Billion to fight a useless war that had seen hundreds of thousands killed on both sides and it’s still on going. It’s just one more stink-bomb of a parting gift Biden leaves for Trump.

Andrew Holmes
Andrew Holmes
9 hours ago

He certainly didn’t distinguish himself with a $1.5 billion bribe to Iran, his demonstrated contempt for our longest allies, Britain and Israel, Libya, and his idiotic support for Iran, which constantly was attacking our interests, to be the major player in the Middle East. I add Ukraine to his list of misjudgments.