OAN Staff Rayana Unutoa
8:53 AM – Friday, March 21, 2025
Secretary of Defense Pete Hegseth has given an update on the Department of Defense’s efforts to cut wasteful spending.
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In a video posted to X on Thursday, Hegseth announced the termination of over $580 million in Department of Defense (DOD) contracts and grants that do not match the priority of tax payer dollars.
The first removal is an HR software that was intended to take a year to complete and would have costed $36 million. Instead, it has costed the DOD $280 million and is taking eight years to complete.
“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,” Hegseth explained in the video while going though a list on a few of the savings.
The Defense Secretary also announced that the department will cut $30 million in contracts with Gartner and McKinsey consulting services for unused licenses and technology-related expenses.
Hegseth has been vocal about his support of Elon Musk’s Department of Government Efficiency (DOGE) and it’s effort to discover cost savings across the government.
The Pentagon, where the Department of Defense is located, oversees the largest budget of any federal government agency. During the last fiscal year, Congress allowed the department $825 billion. The DOD employees over 2 million individuals.
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