Defense Secretary Pete Hegseth just axed over $580 million in Defense Department contracts deemed unnecessary or misaligned with the administration’s America First priorities. Can you believe how easily they keep finding all this waste?
At a glance:
- Defense Secretary Pete Hegseth announced the cancellation of $580 million in wasteful Pentagon contracts and grants
- A major HR software project costing $280 million over budget and 7-8 years behind schedule was terminated
- Over $360 million in grants for DEI, climate change, and social science research were eliminated
- The initiative is part of a partnership with Elon Musk’s Department of Government Efficiency (DOGE)
- Total savings from wasteful Pentagon spending now tops $800 million under Hegseth’s leadership
Defense Secretary’s Bold Cost-Cutting Initiative
Defense Secretary Pete Hegseth is taking an ax to wasteful Pentagon spending in a move that’s sending shockwaves through the military-industrial complex and earning praise from fiscal conservatives. Working closely with Elon Musk’s Department of Government Efficiency (DOGE), Hegseth signed a directive terminating contracts and grants that failed to align with President Trump’s America First priorities.
The Pentagon chief made clear that taxpayers deserve better stewardship of their money when he announced the cuts at a press briefing. “Today, I’m signing a memo directing the termination of over $580 million in DOD contracts, in grants that do not match the priorities of this president or this department,” Hegseth declared.
A significant portion of the eliminated spending came from the Defense Civilian Human Resources Management System (DCHRMS), a bloated software project that was $280 million over budget and seven to eight years behind schedule. This type of government inefficiency has long frustrated conservatives who advocate for responsible fiscal management in Washington.
DEI and Climate Programs Get The Axe
Hegseth’s cost-cutting measures also targeted over $360 million in research grants focused on progressive priorities like Diversity, Equity, and Inclusion (DEI), climate change, and social science initiatives. The Defense Secretary made his priorities crystal clear, stating, “I need lethal machine learning models, not ‘equitable’ machine learning models.”
Additionally, $30 million in contracts with consulting firms Gartner and McKinsey were terminated after being deemed non-essential to the department’s core mission. This focus on eliminating non-essential spending represents a significant departure from the previous administration’s approach to defense budgeting.
“Ultimately, that’s who funds us,” Hegseth said, referring to American taxpayers. “We owe you transparency and making sure we’re using it well.”
The initiative has caused stock prices to fall for several major defense contractors and consulting firms, including Lockheed Martin, Northrop Grumman, General Dynamics, Booz Allen Hamilton, Accenture, and Palantir Technologies. Despite this short-term market disruption, Hegseth’s team remains focused on ensuring taxpayer dollars are directed toward actual military readiness.
Broader Government Efficiency Push
The Pentagon’s efficiency drive is part of a broader Trump administration effort spearheaded by Elon Musk’s DOGE initiative, which claims to have already saved taxpayers tens of billions of dollars across government agencies. With the latest cuts, Hegseth’s Department of Defense has now eliminated $800 million in wasteful spending since the beginning of the administration.
Hegseth emphasized that his department is working toward passing an audit, something the Defense Department has failed to do for seven consecutive years. The Pentagon manages the largest federal budget, with $825 billion allocated last fiscal year and oversight of more than 2 million employees.
Rep. Nancy Mace has praised Hegseth’s transparency and decisive action, with many conservatives viewing these cuts as just the beginning of a much-needed overhaul of federal spending. To date, 239 contracts with a total value of $1.7 billion have been terminated as part of the efficiency initiative.
Hegseth concluded his announcement with a warning that more cuts are coming: “We’re working hard with them. We appreciate the work that they’re doing, and we have a lot more coming.”
