Hegseth announces $5.1 billion in additional Defense Department spending cuts

Defense Secretary Pete Hegseth reported that he signed a memorandum Friday ordering $5.1 billion in cuts to unnecessary Department of Defense (DOD) contracts. The action was taken in collaboration with the Department of Government Efficiency (DOGE).

"That's with a 'B'; $5.1 billion in DOD contracts for ancillary things like consulting and other nonessential services," Hegseth said in a video he recorded from his office.

In that regard, the DOD explained that the memo lists some of the cuts, including $1.8 billion in consulting contracts that the Defense Health Agency awarded to several private-sector companies; a $1.4 billion business computer 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.

Also, the memo mentioned the elimination of a $500 million contract awarded to the Defense Advanced Research Projects Agency for technical support services. In addition, 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 non-essential activities across the Defense Department.

"We are committed to rooting out DEI — root and branch — throughout this department … [And] I'm going to keep looking," Hegseth assured.

Similarly, he pointed to cuts in academia: more than $500 million in funding for two universities that "tolerate antisemitism and support divisive DEI programs." This is in addition to the $70 million already cut in funding from three other universities in recent weeks.