In a recorded statement from his office, Secretary Hegseth emphasised the scale of the cuts: “That’s with a ‘B’; USD 5.1 billion in DOD contracts for ancillary things like consulting and other nonessential services.” The latest reductions follow a previous $580 million round of cuts unveiled in March, bringing the total to nearly USD 6 billion within six weeks.
New @DOGE findings, this time it’s $5.1 billion. pic.twitter.com/vHRnDHZSUS
— Secretary of Defense Pete Hegseth (@SecDef) April 10, 2025
Key cuts outlined in the department’s memorandum include $1.8 billion in consulting contracts awarded by the Defense Health Agency, USD 1.4 billion from an enterprise cloud IT services contract, and USD 500 million from a Navy business process consultancy. “We need this money to spend on better health care for our warfighters and their families, instead of USD 500 an hour business process consultant,” Hegseth said, adding, “That’s a lot of consulting.”
Also on the list is a USD 500 million contract given to the Defense Advanced Research Projects Agency for IT support, which Hegseth described as “completely duplicative” of services already offered by the Defense Information Systems Agency. In addition, 11 contracts tied to diversity, equity and inclusion (DEI), climate change, and the COVID-19 response have been cancelled as part of a broader review of nonessential activities.
“We are committed to rooting out DEI — root and branch — throughout this department … [And] I’m going to keep looking,” the Secretary stated. The department is also pausing over USD 500 million in funding to two universities alleged to tolerate antisemitism and promote “divisive DEI programmes,” following previous funding cuts of USD 70 million at three other institutions.
The Defence Department’s ongoing review is being led by the newly established Department of Government Efficiency (DOGE), first introduced in February this year. “If you’re keeping score at home, today’s cuts bring our running total to nearly USD 6 billion in wasteful spending,” said Hegseth, underlining DOGE’s role in redirecting funds to enhance military readiness.
Concluding his message, Hegseth thanked the DOGE team and reaffirmed the department’s commitment to fiscal discipline. “We’re excited to make these cuts on behalf of you, the taxpayer and the warfighters here at the department,” he said.
Source: U.S. Department of Defense.
