Saturday, 19 April 2025

WOW: Pete Hegseth Announces $5.1 BILLION In Additional DOD Spending Cuts


Secretary of Defense Pete Hegseth just announced a whopping $5.1 billion in additional spending cuts at the Department of Defense.

Yes, you read that right. $5.1 billion.

Following a review from Elon Musk’s Department of Efficiency, Hegseth said that he is terminating billions of dollars in DOD contracts for wasteful things like consulting and “other nonessential services.”

That number is just wild.

And, it’s on top of the $580 million that Hegseth cut last month in DOD programs, contracts, and grants.

Watch Hegseth’s announcement here:

The DOD website listed some specifics on the types of contracts that will be cut:

Defense Secretary Pete Hegseth signed a memorandum today announcing the cutting of $5.1 billion in wasteful Defense Department contracts.

“That’s with a ‘B’; $5.1 billion in DOD contracts for ancillary things like consulting and other nonessential services,” Hegseth said while recording a video of the announcement from his office.

The memo lists some of the cuts, including $1.8 billion in consulting contracts the Defense Health Agency awarded to various private sector firms, a $1.4 billion enterprise cloud IT services contract awarded to a software reseller, and a $500 million Navy contract for business process consulting.

“We need this money to spend on better health care for our warfighters and their families, instead of $500 an hour business process consultant,” Hegseth said. “That’s a lot of consulting.”

He also mentioned cutting a $500 million contract awarded to the Defense Advanced Research Projects Agency for IT help desk services that are “completely duplicative” of services that the Defense Information Systems Agency already provides.

Additionally, Hegseth said the department is cutting 11 contracts related to diversity, equity and inclusion, climate change, the department’s response to the COVID-19 pandemic and related nonessential activities across DOD.

“We are committed to rooting out DEI — root and branch — throughout this department … [And] I’m going to keep looking,” Hegseth said.

Business Insider also reported on the sweeping cuts:

The US’s defense secretary, Pete Hegseth, just ordered the termination of IT and consulting contracts with companies like Accenture and Deloitte, calling it “wasteful spending.”
In a Department of Defense memo, Hegseth said he would cut a Defense Health Agency contract “for consulting services from Accenture, Deloitte, Booz Allen, and other firms that can be performed by our civilian workforce.”Also on the chopping block is the Air Force’s contract with Accenture to “re-sell third-party Enterprise Cloud IT Services,” which Hegseth says the government can “already fulfill directly with existing procurement resources.”In the memo, Hegseth also said he was terminating 11 other contracts for “consulting services” that support “non-essential” activities, like Diversity, Equity and Inclusion (DEI), climate matters, and the Pentagon’s COVID-19 response.

Hegseth said the terminations “represent $5.1 billion in wasteful spending” at the DOD and would result in nearly $4 billion in savings.

The savings would be reallocated, Hegseth said, to serve “critical priorities to Revive the Warrior Ethos, Rebuild the Military, and Reestablish Deterrence.”

Talk about cutting the bureaucratic bloat!

You love to see it.

 

This is a Guest Post from our friends over at WLTReport.

View the original article here.


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