DOD cuts $580M in programs, contracts, and grants
The latest round of Pentagon spending cuts, which include a delayed HR software program, brings the department’s running total of eliminated programs to $800 million.
Defense Secretary Pete Hegseth announced the cuts in a memo released on Thursday, writing that they affected efforts “inconsistent with the priorities of the DOD.” In addition to the topline figure, Hegseth also wrote that the move would enable about $170 million to be shifted to other Pentagon programs.
The most noteworthy termination was a human-resources software-development program and its associated active contracts. DOD said the initiative was intended to help streamline the department’s HR program but has become bogged down by hefty cost overruns and delays.
The program started in 2018 and was expected to be completed in one year at a cost of approximately $36 million. It is now six years behind schedule and the total cost has soared to more than $280 million over its initial estimate.
"So, that's 780% over budget; we're not doing that anymore," Hegseth said in a video that was shared on his X account.
He noted in the memo, however, that the initiative is “an important mission we still need to achieve,” and that he has directed key DOD personnel to develop a new plan within 60 days to achieve the program’s initial objective.
Hegseth also announced that DOD is cutting $360 million in grants tied to diversity, equity and inclusion initiatives — a key target of the Trump administration and Elon Musk’s cost-cutting Department of Government Efficiency — including a $9 million university grant for developing equitable AI and machine learning models.
"I need lethal machine learning models, not equitable machine learning models," he said.
DOD also announced the termination of $30 million in contracts with external consultants, including with the firms McKinsey & Company and Gartner for IT services. Those cuts come after the Trump administration asked agencies to review their consulting contracts with large firms in an effort to cut “non-essential consulting contracts.”
Hegseth said the recent round of contract terminations — which he attributed to DOGE’s help — brings the department’s running total of cuts to $800 million since the beginning of the Trump administration. ]]>
