After a review of DOGE, Hegseth will cut USD 5.1 billion in spending.

The United States Secretary of Defense, Pete Hegseth, announced this Thursday that the Department of Defense (DOD) will cancel USD 5.1 billion in contracts deemed unnecessary, as part of efforts to reduce federal spending led by the Office of Government Efficiency (DOGE), an initiative driven by President Donald Trump and led by Elon Musk.

In a video posted on social media, Hegseth detailed that he signed a memorandum ordering the termination of multiple DOD contracts, including USD 1.8 billion in consulting services for the Defense Department's Health Agency, and USD 1.4 billion in enterprise IT cloud services, contracted with private firms like Accenture, Deloitte, and Booz Allen.

According to Hegseth, these services can be covered internally by the government's civilian staff.

Also, 11 contracts related to diversity, equity, and inclusion (DEI), climate change, and COVID-19 response were eliminated. Hegseth described these programs as "non-essential activities" for the Pentagon's main mission.

He also announced the suspension of more than USD 500 million in funding to Northwestern and Cornell universities, citing tolerance of antisemitism and support for divisive DEI programs as reasons.

Hegseth explained that these cuts are part of a strategy to "rebuild the military" and refocus resources on priorities like healthcare for soldiers and strengthening military deterrence.

"We need that money to provide better healthcare to our fighters and their families, not to pay USD 500 per hour to business process consultants," he stated.

Musk also reiterated his commitment to streamlining public spending and said that "the cuts will not only not negatively affect services, but will even improve them."

DOGE, created by executive order of Trump on January 20, 2025, is a task force focused on identifying fraud, waste, and redundant expenses throughout the public administration.

On its website, DOGE claims to have caused USD 150 billion in estimated savings as of April 8.

The focus on spending cuts has had a significant impact on federal employment. More than 75,000 government workers have accepted offers to resign and continue receiving salaries and benefits until September 30. Additionally, tens of thousands of layoffs have been announced:

• The Department of Health and Human Services (HHS) will eliminate 10,000 jobs.
• The Environmental Protection Agency (EPA) plans to lay off more than 1,000 scientists.
• The Internal Revenue Service (IRS) will lose about 20% of its workforce (18,000 employees).
• The Department of Education will lay off 1,300 employees.
• The Department of Veterans Affairs (VA) will reorganize and lay off 80,000 people.
• The Pentagon plans to cut between 50,000 and 60,000 civilian employees.

Additionally, about 24,000 probationary employees have been dismissed, leading to lawsuits from nearly 20 states incorrectly alleging that the measures are illegal.