Maybe the money is going to the secret space program. And one of the duties of the regular public military and security industry is to be a front.
Alas, I worry that the secret space program is merely the rare not-totally-worthless exception to the overall rule.
The exception: there will most likely be something useful coming out of a space program. May or may not be useful enough to offset the costs, but it's not going to be a complete waste.