Department of Defense leadership, under the direction of Pete Hegseth, has announced the termination of more than $580 million in contracts and grants deemed wasteful or not aligned with the current administration’s defense priorities.
The move brings total cuts to $800 million in the first few weeks of Hegseth’s tenure, with further reductions anticipated.
In a public update, Hegseth explained the rationale behind the decision and outlined specific programs being shut down.
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“We’re back with another quick update on our efforts to cut wasteful spending and cut it quickly at the Department of Defense so we get the dollars to the things that the war fighters need,” Hegseth said.
Among the largest terminations is a long-delayed HR software project, initially expected to cost $36 million and be completed within a year.
Instead, the effort has stretched over eight years and ballooned to more than $280 million.
“So today, I’m signing a memo directing the termination of over $580 million in DOD contracts, in 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. Ultimately, that’s who funds us. We owe you transparency and making sure we’re using it well,” Hegseth said.
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The canceled HR project alone is “780% over budget,” according to Hegseth. “We’re not doing that anymore,” he said.
Hegseth also identified $360 million in Department of Defense grants being eliminated, many of which were tied to decarbonization initiatives and diversity-focused programs linked to the Obama-Biden-era agenda.
“Another batch of DOD grants, $360 million worth this time decarbonizing emissions from Navy ships, part of the Obama-Biden green agenda,” Hegseth said.
He continued: “That’s 6 million bucks, $5.2 million on something that would diversify and engage the Navy by engaging underrepresented BIPOC students and scholars. Another $9 million at a university to approach equitable AI and machine learning models.”
On that note, Hegseth made clear his priorities differ sharply from those initiatives.
“I need lethal machine learning models, not equitable machine learning models,” he said.
Additionally, the Department of Defense is cutting $30 million in consulting contracts with Gartner and McKinsey, citing wasteful spending on unused software licenses.
“In our ongoing effort to cut wasteful spending on external consulting services, 30 million bucks in contracts with Gartner and McKinsey. It’s it purchasing unused licenses,” Hegseth stated.
All told, the newly announced terminations bring the total amount of wasteful spending canceled to $800 million since Hegseth began implementing cost-cutting measures.
“So when you add it all up, $580 million in DOD Contracts and Grants, Doge is helping us cut today. What does that bring our total number up? Total cuts running total $800 million in wasteful spending canceled over the first few weeks as DoD partners with Doge here to make sure that our war fighters have what they need,” he said.
Hegseth emphasized that the savings are not simply budgetary victories, but part of a broader push to ensure taxpayer dollars are being used to directly support military readiness and capability.
“By cutting the waste, fraud and abuse, they’re working hard. We’re working hard with them. We appreciate the work that they’re doing, and we have a lot more coming. So stay tuned,” Hegseth said.
Before concluding his update, Hegseth signed the memo on camera.
“So if might as well not waste any more time right now. Just sign this thing. How about that? So this makes it official. We’re going to keep going for you guys.”
Another round of @DOGE findings here at the Department of Defense. pic.twitter.com/PSrHn8Zjlq
— Secretary of Defense Pete Hegseth (@SecDef) March 20, 2025
The Department of Defense is expected to continue reviewing additional contracts and programs as part of its effort to streamline operations and redirect resources to frontline priorities.
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