Pentagon cancels over $580 million in contracts and grants to cut waste

On March 20, US Defense Secretary Pete Hegseth announced that the Pentagon is cancelling over $580 million in contracts and grants that do not align with the Trump administration's priorities. This move is part of a broader effort to deepen ties with Elon Musk’s Department of Government Efficiency (DOGE).

Among the cancelled programs is an HR software initiative that was initially expected to be completed in one year with a projected cost of $36 million, Caliber.Az reports, referring to US media.

However, the project is now in its eighth year and $280 million over budget. “That’s 780% over budget. We’re not doing that anymore,” Hegseth stated in a video posted on social media platform X.

Hegseth also cancelled a series of DoD grants totalling around $350 million, including funding intended to decarbonize emissions from Navy ships, which was part of the Obama-Biden administrations’ green agenda.

Additionally, a $5.2 million grant aimed at expanding access for underrepresented BIPOC (Black, Indigenous, and People of Color) students and scholars to naval career pathways, particularly in STEM fields and leadership roles, was also cut.

Another $9 million grant for university research on equitable AI and machine learning models was also cancelled. “I need lethal machine learning models, not equitable machine learning models,” Hegseth remarked.

The Pentagon is also cancelling $30 million in contracts with consulting firms Gartner and McKinsey for IT services.

“When you add it all up, $580 million in DoD contracts and grants DOGE is helping us cut today,” Hegseth said. “They are not a good use of taxpayer dollars. Ultimately, that’s who funds us, and we owe you transparency and make sure we’re using it well.”

To date, DOGE has identified $800 million in what it deems wasteful spending. In its initial round, DOGE pinpointed $80 million in wasteful spending to slash, including $1.9 million for diversity, equity, and inclusion training in the Air Force and $6 million to the University of Montana to “strengthen American democracy by bridging divides.”

“As DoD partners with DOGE, we’re here to make sure that our war fighters have what they need by cutting the waste, fraud, and abuse. They’re working hard, and we’re working hard with them. We appreciate the work that they’re doing, and we have a lot more coming. Stay tuned,” Hegseth added.

By Tamilla Hasanova