By Charles Switzer
1:50am PDT, Mar 22, 2025
Hegseth Announces New Budget Reductions
Defense Secretary
Pete Hegseth revealed another significant round of spending cuts on Thursday, March 20, totaling $580 million, the
New York Post reported. He stated these reductions targeted programs that either conflicted with the current administration's goals or represented inefficient use of funds.
These latest savings bring the estimated total identified by the Department of Government Efficiency
(DOGE) to approximately $800 million since Hegseth began his review of Pentagon expenditures.
"They are not a good use of taxpayer dollars — ultimately that's who funds us and we owe you transparency and make sure we're using it well," he explained in a video posted to X.
Here are four takeaways to keep in mind about Hegseth's plans…
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Examples of Eliminated Programs
In the clip, Pete Hegseth highlighted several of the eliminated initiatives. One particularly costly program involved a human resources software development effort that had exceeded its original budget by over $280 million and was running seven years late.
Initially estimated at $36 million and scheduled for completion in just one year, the project was deemed unsalvageable.
The Defense Secretary also cited $360 million in grants that were cut, including those meant to reduce carbon emissions for Navy operations, promote diversity in higher education and support "equitable" artificial intelligence models at a university he did not name.
Philosophy Behind the Cuts
Pete Hegseth emphasized that his focus is on responsible stewardship of taxpayer money. He reiterated the need for accountability in defense spending, asserting that some initiatives strayed too far from national security priorities.
In a pointed remark, he dismissed the notion of "equitable machine-learning models," insisting the military requires "lethal"
AI applications instead.
He also noted that $30 million in consulting expenses with firms like McKinsey and Gartner had been eliminated due to unused services and licensing costs.
DOGE's Expanding Role and Musk's Influence
The Department of Government Efficiency, which has received strong backing from tech entrepreneur
Elon Musk, continues to play a major role in identifying federal waste.
Pete Hegseth praised the collaboration with DOGE and signaled that additional budget trims are forthcoming. He has remained a vocal advocate for DOGE's mission of streamlining federal operations and committed early on to helping the Defense Department pass a comprehensive audit — an achievement that has eluded the Pentagon for seven consecutive years.
The Bigger Picture and Political Shifts
With more than two million employees and an annual budget of $825 billion, the Department of Defense manages the largest financial portfolio in the U.S. government.
Pete Hegseth's ongoing cuts are part of a broader initiative to rein in inefficiencies. Tensions have reportedly arisen between Elon Musk and some federal officials, prompting President
Donald Trump to declare that cabinet-level leaders will now have greater influence over staffing decisions.
Meanwhile, DOGE continues to claim substantial taxpayer savings, with reported totals reaching into the tens of billions.
