Defense Secretary Pete Hegseth announced the spending drawback in a memo released on Thursday, writing that the terminated expenditures were “inconsistent with the priorities of the DOD.” In addition to the topline figure, Hegseth also wrote that the move would result in approximately $170 million in estimated savings which could be reallocated across the department.
The most noteworthy termination was a human resources software development program and its associated active contracts. DOD said the initiative was intended to help streamline a significant portion of the department’s legacy HR program but has become bogged down by hefty cost overruns and delays.
The program started in 2018 and was expected to be completed in one year at a cost of approximately $36 million. It is now six years behind schedule and the total cost has soared to more than $280 million over its initial estimate.
"So, that's 780% over budget; we're not doing that anymore," Hegseth said in a video that was shared on his X account.
He noted in the memo, however, that the initiative is “an important mission we still need to achieve,” and that he has directed key DOD personnel to develop a new plan within 60 days to achieve the program’s initial objective.
Hegseth also announced that DOD is cutting $360 million in grants tied to diversity, equity and inclusion initiatives — a key target of the Trump administration and Elon Musk’s cost-cutting Department of Government Efficiency — including a $9 million university grant for de ..
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