Secretary of Defense Pete Hegseth has ordered a swift and sweeping review of the Pentagon budget, seeking cuts worth 8 percent of total spending over the next five years that he intends to shift to fund higher priority defense projects, according to a memorandum obtained by Air & Space Forces Magazine.
Hegseth directed the military services, defense agencies, and combatant commands to propose cuts totaling 8 percent of their budgets over the next five years, starting with the fiscal 2026 budget, he wrote in the memo dated Feb. 18. Hegseth said he was conducting a “relook” of the budget.
Some programs and offices will be exempt from the budget-cutting exercise, which is understood to provide defense organizations a means to prioritize their program and spending choices, a person familiar with the matter said. There are 17 specific areas that will be exempt from cuts, including the Air Force’s Collaborative Combat Aircraft program, nuclear modernization, one-way attack drones, and munitions.
Hegseth “has directed a review to identify offsets” from the Biden administration’s draft fiscal 2026 budget to fund priorities including “securing our borders” and building an “Iron Dome for America” missile defense system, said a Pentagon statement attributed to Acting Deputy Secretary of Defense Robert G. Salesses on Feb. 19.
“The Department will develop a list of potential offsets that could be used to fund [Trump administration] priorities, as well as to refocus the Department on its core mission of deterring and winning wars,” Salesses said. “The offsets are targeted at 8 percent of the Biden administration’s FY26 budget, totaling around $50 billion, which will then be spent on programs aligned with President Trump’s priorities.”
The current Pentagon budget is roughly $850 billion.
Hegseth wrote he wanted to “resource the capabilities and readiness necessary for a wartime tempo and offset those requirements with low-impact items.” Proposed cuts are due to be submitted by DOD organizations and services by Feb. 24.
Bloomberg was the first to report Hegseth’s spending shift.
Hegseth’s directive comes as representatives from DOGE—President Trump’s Department of Government Efficiency commission, directed by Elon Musk—have begun to work at the Pentagon, seeking to slash government spending, staffing, and waste. DOGE has already directed cuts at other agencies, and the Washington Post reports that the Pentagon could soon begin laying off thousands of probationary civilian employees as part of that effort. DOGE actions are understood to be distinct from any reallocation of funding ordered by Hegseth, who has cited spending on climate change initiatives and diversity, equity, and inclusion programs as examples of programs deserving to be cut.
“The time for preparation is over—we must act urgently to revive the warrior ethos, rebuild our military, and reestablish deterrence,” Hegseth wrote in the memo. “Our budget request will resource the fighting force we need, cease unnecessary spending, reject excessive bureaucracy, and drive actionable reform, including progress on the audit.”