Defense Secretary Hegseth Announces $580M in Pentagon Spending Cuts

The latest reductions, part of an $800M effort, target over-budget projects, green initiatives, and diversity programs to prioritize military needs.

The Department of Defense, led by Pete Hegseth, has eliminated $580 million in contracts and grants deemed wasteful, bringing recent savings to $800 million.
Cuts include $280 million for an over-budget HR software project, $6 million for Navy ship decarbonization, $9 million for equitable AI, and $30 million in consulting contracts.
Hegseth emphasized redirecting funds to 'warfighter priorities,' criticizing projects like diversity efforts and equitable AI as misaligned with current defense goals.
The Pentagon's failure to pass six consecutive audits and bipartisan concerns about spending inefficiencies have driven these reforms.
The announcement impacted markets, with Gartner's stock dropping nearly 8% following the cancellation of $30 million in consulting contracts.