Pentagon Cuts $580 Million in Contracts and Grants Deemed Wasteful

Defense Secretary Pete Hegseth announces terminations targeting misaligned programs, adding to $800 million in savings identified by the Department of Government Efficiency.

The Department of Defense has canceled $580 million in contracts and grants, including a delayed HR software project that was $280 million over budget.
Grants worth $360 million, including funding for decarbonizing Navy ships, diversity initiatives, and equitable AI development, were terminated for not aligning with DoD priorities.
An additional $30 million in consulting contracts with firms like Gartner and McKinsey was cut as part of broader cost-saving measures.
These cuts are part of a larger initiative by the Department of Government Efficiency, which has identified $800 million in savings at the Pentagon in recent weeks.
The Pentagon is planning further reductions, including cutting tens of thousands of civilian jobs, to address inefficiencies and redirect funds to mission-critical priorities.