DOD CUTS $580M IN PROGRAMS, CONTRACTS & MORE TO REDUCE GOVERNMENT SPENDING
As Trump sets foot in the new administration, budget cuts have been ongoing to reduce spending that was believed to be overfunded or inefficient.
In the effort of the Defense Department’s ongoing budget cut for wasteful government spending, Defense Secretary Pete Hegseth signed a memo on March 20th, directing the termination of more than $580 million in programs, contracts, and grants.
Hegseth Signs a $580M Defense Budget Cut Memo
On Thursday, March 20th, Secretary Pete Hegseth of the Department of Defense announced the termination of contracts and grants amounting to more than $580 million.
On the same day he signed the memo he released the following statement, “Today, I’m signing a memo directing the termination of over $580 million in DOD contracts and grants that do not match the priorities of this president or this department. In other words, they are not a good use of taxpayer dollars,” Hegseth said. “Ultimately, that’s who funds us, and we owe you transparency and making sure we’re using it well.”
Republican lawmakers, such as Sen. Tommy Tuberville and Sen. Katie Britt (R-Ala.), have expressed concern about the DOGE's approach to cut wasteful government spending.
“Everybody’s concerned when you have people cutting out of your state,” Sen. Tuberville said. “But we all understand, it’s — that’s just part of it, you know, we’re way over, bloated, we got to cut back.”
More than five contracts and grants were terminated because they were “inconsistent with the priorities of the DOD.”
Hegseth also wrote that this move could result in saving about $170 million, which can be reallocated across the department.
Which Defense Programs and Contracts Are Affected?
The first of the contracts and grants to be terminated was the Defense Civilian Human Resources Management System (DCHRMS) software development program, which is also associated with active contracts at the Defense Human Resources Activity (DHRA). They are behind with the six-year schedule and have spent more than $280 million, which is over budget.
"So, that's 780% over budget; we're not doing that anymore," Hegseth said.
The program was intended to make the process efficient for the Department's legacy human resources (HR) information technology stack. Hegseth also noted that the DHRA, DOD chief information officer, military departments, and HR service providers should develop a new plan within 60 days so they could still achieve the mission intended for the program.
In the areas of diversity, equity, and inclusion and related social programs, climate change, social science, and the COVID-19 pandemic response, about $360 million in additional grants was also overfunded, which Hegseth said is not aligned with the DOD’s priorities.
Lastly, according to Hegseth, one of the “not mission-critical” aspects of executing his priorities in his department is having a $30 million overfund in contracts with external consulting firms for analysis products.
The termination has resulted in over $580 million of wasteful government spending that is not aligned with DOD’s priorities and about $170 million in estimated savings.
Political Motivations Behind the US Budget Cuts
The USA has an overflowing debt of $36 trillion and counting, and one of Trump’s goals in the current administration is to cut costs.
This is because there is wasteful spending related to certain contracts, grants, and programs, which the government has been working to eliminate.
Elon Musk, Trump's newest efficiency advisor, wants to take at least $2 trillion off the top of the annual federal budget, and earlier this month, defense officials said that DOGE had identified approximately $80 million in wasteful spending.
What to Expect After the Cuts
According to Hegseth, there is more to follow over the coming weeks to eliminate wasteful government spending.
"DOGE is helping us cut today," he said, where there is more than $800 million in wasteful spending that has been terminated in the first few weeks since the Department of Defense partnered with Elon Musk.
As the budget cuts continue, more reductions are expected to save money, aligning with Trump’s goal to cut wasteful government spending.
Read next:
- Here's How Federal Cuts Will Impact VA Research & the Job Market
- Hegseth Directs $50B in Pentagon Budget Cuts, New Spending Details Emerge
- $100B Military Spending Plan Advanced Amid Concerns of Budget Cuts Threatening Veterans
Sources:
JOIN OUR NEWSLETTER