Mar 4, 2025; Washington, DC, USA; U.S. Secretary of Defense Pete Hegseth gives a thumbs up as U.S. President Donald Trump address a joint session of Congress at the U.S. Capitol on March 04, 2025 in Washington, DC. Vice President JD Vance and Speaker of the House Mike Johnson (R-LA) applaud behind him. President Trump was expected to address Congress on his early achievements of his presidency and his upcoming legislative agenda. Mandatory Credit: Win McNamee-Pool via Imagn Images
Washington D.C. – In a move to reduce wasteful spending, Defense Secretary Pete Hegseth announced today that the Department of Defense (DOD) would terminate over $580 million in programs, contracts, and grants. This decision follows the department’s ongoing efforts to streamline operations and eliminate expenditures deemed unnecessary or misaligned with the priorities of the Trump administration.
Hegseth outlined the rationale behind the cuts during prerecorded remarks, emphasizing that taxpayer dollars must be used responsibly. “We owe taxpayers transparency and making sure we’re using [the money] well,” he said, underscoring the importance of fiscal responsibility in the defense sector.
The most significant cut is the cancellation of a software development program for the Defense Civilian Human Resources Management System, which aimed to modernize a portion of DOD’s legacy HR program. The project, which began in 2018, was initially budgeted at $36 million and slated for completion within a year. However, Hegseth revealed that the program is now nearly eight years behind schedule and $280 million over budget, a staggering 780% cost overrun. “So, that’s 780% over budget; we’re not doing that anymore,” Hegseth declared.
In addition to the software program, the Pentagon is also ending several external consulting contracts, including one valued at $30 million. According to Hegseth, this contract involved a company that purchased numerous unused licenses, a decision he described as inefficient and wasteful.
On top of these cuts, the DOD is eliminating $360 million in grants. Among the grants to be terminated are a $6 million initiative to decarbonize emissions from Navy ships, a $5.2 million effort to diversify the Navy, and a $9 million university grant aimed at developing “equitable AI and machine learning models.” Hegseth, however, expressed dissatisfaction with the focus of the AI grant, stating, “I need lethal machine learning models, not equitable machine learning models.”
The announced cuts come just a few weeks after Hegseth’s February 20, 2025, memo, which had already identified savings of $220 million, bringing the total amount saved to $800 million. Hegseth emphasized that these savings would be reinvested in ensuring that U.S. warfighters have the necessary resources, as the department works to eliminate what he referred to as “fraud, waste, and abuse.”
Despite the claims of progress, the timing and specifics of the cuts, particularly the elimination of some highly publicized grants, have raised questions about the broader implications for military readiness and innovation. Hegseth concluded his remarks with a promise: “Stay tuned … We’re going to keep going for you guys.”
