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Pentagon announces $5.1 billion in spending cuts, terminates multiple contracts


Defense Secretary Pete Hegseth responds to questions from reporters during a meeting with Britain's Defense Secretary John Healey at the Pentagon, Thursday, March 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)
Defense Secretary Pete Hegseth responds to questions from reporters during a meeting with Britain's Defense Secretary John Healey at the Pentagon, Thursday, March 6, 2025, in Washington. (AP Photo/Rod Lamkey, Jr.)
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The Pentagon has announced $5.1 billion in spending cuts. Defense Secretary Pete Hegseth signing a memorandum detailing the cuts to the Department of Defense through terminated contracts.

In a video on 'X' this week, Hegseth announced the spending cuts.

"$5.1 billion in DOD contracts for ancillary things for consulting and other nonessential services," Hegseth said.

Hegseth noted, the Department of Defense needs this money for better healthcare for warfighters and their families. Instead of $500/hour business process consultants.

"DHA contracts for consulting services from Accenture, Booz Allen, and other firms. They're going to save the department $1.8 billion," said Hegseth.

Michael Wallace, retired military and a professor of emergency & security studies at Tulane University, tells us, since these cuts have more to do with consulting, they likely don't pose a national security threat.

There's probably no harm in looking at these contracts and making sure that the best interest of the U.S. military and Department of Defense and the United States. You know, are these really supporting the warfighter? " Wallace said.

But he does say you need to be cautious when transferring the work to the current department workforce because overloading employees could create problems.

"If you put too much on these military personnel, then that's going to lead to decreased morale, and that might lead to retention problems in the future," said Wallace.

Hegseth added, the department is also cutting eleven contracts related to diversity, equity, and inclusion along with climate change and the pandemic. Plus, Pentagon officials are also working to reduce its civilian workforce by 5-8%.


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