In a move to realign the Pentagon’s priorities and eliminate wasteful spending, Defense Secretary Pete Hegseth issued a directive Wednesday terminating over $580 million in programs, contracts, and grants deemed inconsistent with the Department of Defense’s mission.
In a memo sent to senior Pentagon leaders and commanders across all combatant commands, Hegseth outlined immediate cancellations targeting bloated software projects, ideologically driven research, and non-essential consulting contracts, calling the effort part of the Trump administration’s broader push to “restore accountability” and rebuild the U.S. military.
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“These terminations represent over $580 million in wasteful spending, with nearly $170 million in immediate savings that can be reallocated to mission-critical priorities,” Hegseth wrote. “I commend Department leadership for identifying these opportunities, and I encourage others to follow suit.”
Among the most notable terminations:
- The Defense Civilian Human Resources Management System (DCHRMS):
Once billed as a solution to modernize the Pentagon’s HR systems, the software program is now six years behind schedule and 780% over budget, having exceeded $280 million with at least two more years of development still required. Hegseth called further investment in DCHRMS “throwing good taxpayer money after bad.” - $360 million in grants for non-core priorities:
Funding for research and programs tied to Diversity, Equity, and Inclusion (DEI) initiatives, climate change, social science, and COVID-19 pandemic responses will be slashed. Hegseth said these efforts “are not aligned with DoD priorities.” - $30 million in consulting contracts:
External contracts producing “non-mission-critical analysis products” are being eliminated in the first wave of a larger initiative to reduce Pentagon reliance on costly consulting services.
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The cuts come amid a broader Trump administration overhaul of the Department of Defense, with a renewed emphasis on combat readiness, military lethality, and accountability. Since returning to office in January, President Donald Trump and Secretary Hegseth have promised to end what they describe as “bureaucratic bloat and ideological drift” within the armed forces.
“We are going to focus this department on its core mission: fighting and winning wars,” Hegseth said earlier this month.
In his memo, Hegseth directed the DoD Performance Improvement Officer, along with other top officials, to deliver a new plan within 60 days for streamlining HR systems across the department — but without repeating the failures of DCHRMS.
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Hegseth signaled that this is just the beginning. “This first batch of cancellations is part of a broader effort… with more to follow in the weeks ahead,” he wrote, indicating that additional wasteful or ideologically motivated programs may be on the chopping block.
Hegseth’s memo ends with a call to action: “I encourage other leaders across the enterprise to identify more opportunities for savings which we can re-invest in critical mission needs.”
The message is clear: under the Trump administration’s direction, the Pentagon is trading bureaucracy for battlefield readiness — and doing it with speed.
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