Explorer

Pentagon Cancels $5.1 Billion In IT Contracts, Targeting 'Wasteful Spending'

In a memorandum signed April 10, Hegseth characterised the contracts as ‘non-essential spending on third-party consultants’ for work that could be handled internally by Pentagon staff

US Defense Secretary Pete Hegseth has announced the cancellation of IT service contracts totaling $5.1 billion, impacting major consulting firms including Accenture and Deloitte. The move is part of a broader Pentagon initiative aimed at curbing what it calls “wasteful spending,” the Department of Defense said Friday (IST).

Hegseth said, “... for consulting services from Accenture, Deloitte, Booz Allen, and other firms. They're going to save the department $1.8 billion.”  

In a memorandum signed April 10, Hegseth characterised the contracts as ‘non-essential spending on third-party consultants’ for work that could be handled internally by Pentagon staff. He estimated the cuts could generate nearly $4 billion in total savings.

Pentagon Slashes Funding Across IT Contracts and Universities

The US Department of Defense is cutting several high-value contracts as part of its cost-saving initiative. Among them is a $1.8 billion consulting agreement managed by the Defense Health Agency, a $1.4 billion enterprise cloud IT services deal with a software reseller, and a $500 million Navy contract for business process consulting.

A separate $500 million contract for IT help desk services under the Defense Advanced Research Projects Agency (DARPA) will also be terminated, with the Pentagon citing overlapping capabilities already provided by the Defense Information Systems Agency (DISA).

In addition to the contract cuts, the Pentagon will halt over $500 million in funding to two universities accused of tolerating antisemitism and promoting diversity, equity, and inclusion (DEI) programs. This follows the recent rescission of $70 million from three other academic institutions.

Pentagon To Redirect Funds

Defense Secretary Pete Hegseth defended the sweeping contract cancellations, saying the funds would be better spent on enhancing healthcare services for military personnel and their families, rather than paying “$500 an hour” for outside consultants. He reaffirmed the Trump administration’s broader push to cut what it considers wasteful spending, particularly contracts tied to diversity, equity, and inclusion (DEI) initiatives, climate change programs, and pandemic-related efforts.

Also Read: Gold Rate Today (April 11): Check Out Gold Prices In Delhi, Mumbai, Bengaluru, Ahmedabad, More Cities

Nearly $6 Billion Cut Under Efficiency Drive

The latest announcement builds on a March 20 statement from Hegseth, in which he outlined $580 million in cuts to various programs, contracts, and grants. To date, the Department of Government Efficiency (DOGE) initiative has slashed nearly $6 billion in Pentagon spending, with a focus on reallocating resources toward core defense and warfighting priorities.

“We’re excited to make these cuts on behalf of you, the taxpayer, and the warfighters here at the department,” Hegseth said.

About the author ABP Live Business

ABP Live Business is your daily window into India’s money matters, tracking stock market moves, gold and silver prices, auto industry shifts, global and domestic economic trends, and the fast-moving world of cryptocurrency, with sharp, reliable reporting that helps readers stay informed, invested, and ahead of the curve.

Read

Top Headlines

Iran Warns Neighbours After Trump Threats, Says US Bases Could Be Targeted
Iran Warns Neighbours After Trump Threats, Says US Bases Could Be Targeted
Trump’s Big Decision: US To Deny Visas To 75 Countries-Is India Or Pakistan On The List?
Trump’s Big Decision: US To Deny Visas To 75 Countries-Is India Or Pakistan On The List?
Banned Chinese Kite Strings Turn Deadly: Two Killed, Nationwide Safety Concern Grows
Banned Chinese Kite Strings Turn Deadly: Two Killed, Nationwide Safety Concern Grows
Zubeen Garg Was Drunk, Declined Life Jacket Before Drowning: Singapore Police To Court
Zubeen Garg Was Drunk, Declined Life Jacket Before Drowning: Singapore Police To Court

Videos

Breaking: Delhi Government Expands Ayushman Arogya Mandir Network to 319 Centres
Breaking: Joint Police Operation Busts Major Drug Racket in Madhya Pradesh, 10 Kg Narcotics Seized
Breaking: Calcutta High Court Tightens Security Ahead of ED–I-PAC Raid Hearing, Only Case Lawyers Allowed
Breaking: Tej Pratap Yadav Hosts Dahi Chura Bhoj in Patna, Lalu Prasad and Governor Attend Amid Political Speculations
Breaking: Pakistani Drones Spotted Near LoC in Jammu and Kashmir, Indian Army on High Alert

Photo Gallery

25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Embed widget