US Defence Secretary Pete Hegseth unveiled on Thursday more than $580 million in contract terminations as part of a collaborative effort with the Department of Government Efficiency (DOGE).
The move is aimed at reducing wasteful spending and redirecting funds towards critical military needs.
In a video posted on X, Hegseth stated, “We’re back with another quick update on our efforts to cut wasteful spending and cut it quickly at the Department of Defenсe so we get the dollars to the things that the war fighters need.”
So 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 previously expressed support for tech billionaire Elon Musk’s DOGE initiative, which seeks to streamline and reduce expenditure at the Pentagon.
Among the cuts highlighted by Hegseth was an “HR software effort” initially projected to take one year and cost 36 million. However, the project has now stretched to eight years and is currently 280 million over budget.
Number two, another batch of DOD grants, $360 million worth this time.
Hegseth also revealed that $30 million had been slashed from spending on external consulting services, particularly contracts with firms such as Gartner and McKinsey.
It’s IT purchasing unused licenses.
The defence secretary emphasised that the total cuts now amount to $800 million in wasteful spending, all cancelled within the first few weeks of the DoD’s partnership with DOGE.
