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Military-Industrial Complex is a term for the integrated entity formed by the close relationship that exists between the Department of Defense and the civilian companies and contractors that build or supply equipment and weapons for the U.S. military. It also includes politicians with ties to large defense firms and even labor unions whose workers' jobs are dependent on military contracts. In his 1961 farewell address, President Dwight D. Eisenhower warned of the increasing influence of a "military-industrial complex" that created unwarranted ties between the military and major defense firms. The need for ever more sophisticated weaponry and technology created deep connections between the military and private industry.

Critics assert that the phenomenon has led to an iron triangle, consisting of the Defense Department, Congress, and corporations, in which the interests of the three legs have become inseparable. Congressmen and government officials support procurement programs that provide jobs or support industry in their home states or districts. Meanwhile, defense companies provide significant financial support for reelection campaigns and even outright bribes. For instance, Congressman Randy "Duke" Cunningham of California resigned and pled guilty to accepting $2.4 million in bribes and $1.9 million in gifts from defense contractors.

Sensational stories of cost overruns led to a series of procurement reforms in the 1990s and early 21st century. The 1995 decision by President William J. Clinton to make increased arms sales a national security objective reenergized the debate over the influence of large defense firms on American policy. During the presidency of George W. Bush, Halliburton Energy Services was cited as an example of the dangers of the military-industrial complex. The company, which had revenues of more than $20 billion in 2006 with more than 100,000 employees, gained a range of contracts with the Department of Defense--from putting out oil well fires set by Iraqi forces during the Persian Gulf War to providing food and logistical support for U.S. peacekeeping forces in the Balkans. During the 1990s, Halliburton was fined more than $3.8 million for supplying Libya and Iraq with banned dual-use nuclear technology that could be used for weapons programs. However, the firm was led by former secretary of defense, and future vice president, Richard B. Cheney. Between 2003 and 2006, Halliburton received contracts for work in Iraq worth more than $18 billion. The company was also contracted to provide emergency support and debris removal at military facilities impacted by Hurricane Katrina in 2005. Companies such as Halliburton reinforce the public perceptions of the military-industrial complex.

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