The Department of Government Efficiency (DOGE) has initiated collaboration with the Department of Defense (DoD) as of last week, stirring discussions about the potential effects on the Pentagon’s budget, particularly concerning Elon Musk’s cost-reduction initiatives.
The DOGE X account announced on Friday that it has begun its partnership with the Defense Department, expressing enthusiasm for a “great kickoff” and anticipation for jointly working towards safeguarding taxpayer dollars while reducing waste, fraud, and abuse.
Although specific details regarding potential cuts by DOGE and Defense Secretary Pete Hegseth are not publicly available, reports from The Washington Post indicate that Hegseth has directed senior DoD officials to devise plans for an 8% reduction in each of the next five years. He clarified in a memo that President Donald Trump’s mandate of “achieving Peace through Strength” remains vital, necessitating urgent action to restore the military’s warrior ethos and bolster deterrence.
Additionally, on Tuesday, Bloomberg reported that the Pentagon is providing Trump’s team with lists of provisional employees who might be targeted for workforce reductions.
In a memo that was reviewed by The Washington Post, Hegseth stated, “Our budget will resource the fighting force we need, cease unnecessary defense spending, reject excessive bureaucracy, and drive actionable reform including progress on the audit.”
What Parts of the Defense Department Could Be Safe From Cuts?
The memo specified 17 categories that the Trump administration aims to exempt from budget cuts, including operations along the southern U.S. border—an ongoing focus since Trump’s presidency—modernization of nuclear weapons, missile defense, procurement of one-way attack drones, the Air Force’s latest Collaborative Combat Aircraft, and private sector medical services.
Are Defense Spending Cuts Common?
Typically, Congress must approve the National Defense Authorization Act (NDAA) annually, which outlines appropriations and policies for the DoD, and this normally garners bipartisan support. Significant cuts to the DoD’s budget are rare due to the extensive presence of the department’s bases and programs across the U.S., which often leads lawmakers to resist cuts that may affect their regions. If the proposed 8% reductions occur, they would represent the largest effort to trim the department’s spending in over a decade, according to The Washington Post.
What Has Pete Hegseth Said About DOGE?
On February 11, Hegseth expressed a willingness to collaborate with Musk, referring to him as “a great patriot,” along with DOGE, to enhance efficiency within the Pentagon. “There are waste, redundancies and head counts in headquarters that need to be addressed,” Hegseth remarked, emphasizing a coordinated approach that prioritizes American operational and tactical capabilities.
What Has Trump Said About The Defense Budget?
Trump’s stance on defense spending has been inconsistent since taking office. Recently, he suggested the possibility of halving the military budget in the future, as reported by CNBC, although he has also expressed an interest in increasing defense spending in earlier statements.
Big Number
Approximately $850 billion. This figure represents the projected budget for the Defense Department for fiscal year 2025. The Congressional Budget Office indicates that about one-sixth of federal spending is allocated for national defense.
Key Background
Musk and DOGE have been active in various federal departments, aiming to identify and eliminate what they perceive as wasteful or inefficient spending. Up until Monday, DOGE claimed to have saved the government $55 billion by detecting fraud, canceling contracts and leases, and realizing regulatory efficiencies. However, DOGE’s initiatives face ongoing criticism and legal scrutiny, with Democrat lawmakers and nonprofit organizations arguing that the agency exceeds its authority in implementing budget cuts and staff reductions, as well as mishandling sensitive government data. Recently, DOGE achieved a legal victory, with a federal judge denying a petition from 14 state attorneys general that sought to block Musk and DOGE from accessing data or terminating federal employees.
Tangent
Palantir, a software company and defense contractor, experienced a rapid decline in share prices, dropping approximately 12% soon after The Washington Post disclosed Hegseth’s memo regarding budget cuts. The share prices ultimately closed down by 10% at $112.06, negating nearly two weeks’ worth of gains.
