"For FY 2008, the Bush administration has requested $647.3 billion to cover the costs of national defense and war. This includes the Defense Department budget ($483 billion), some smaller defense-related accounts ($22.6 billion), and the projected FY 2008 cost of Iraq, Afghanistan, and counter-terror operations ($141.7 billion). However, it does not include non-DOD expenditures for homeland security ($36.4 billion) or the Veterans' Affairs budget ($84.4 billion). Nor does it include the request for supplemental funds for outstanding FY 2007 war costs ($93.4 billion). The $647.3 billion request represents a 75 percent real increase over the post-Cold War low-point in national defense spending, which occurred in 1996. Today's expenditures are higher in inflation-adjusted terms than peak spending during the Vietnam and Korean wars -- as well as higher than during the Reagan buildup.² One way of appreciating the significance of this change is to view it in terms of world military spending. Whereas the United States accounted for 28 percent of world defense expenditures in 1986 and 34 percent in 1994, it today accounts for approximately 50 percent." (thanks Carla)