Pentagon announces $580 million in cuts to grants, contracts deemed 'wasteful spending'

Defense Secretary Pete Hegseth on Thursday announced that the Pentagon will be shaving $580 million from its budget by canceling contracts and grants deemed "wasteful spending."

The move comes as the Trump administration, with the help of the new Department of Government Efficiency (DOGE), looks to cut waste and fraud from the federal budget. 

Some of the grants impacted fund research efforts related to diversity, equity and inclusion (DEI), and other social programs that do not align with the Department of Defense's (DoD) objectives.

“Today, I’m signing a memo directing the termination of over $580 million in DOD contracts and grants that do not match the priorities of this president or this department," Hegseth said in a video posted to the social platform X. "In other words, they are not a good use of taxpayer dollars."

The order includes the elimination of the “HR software effort” known as the Defense Civilian Human Resources Management System (DCHRMS), which is now more than $280 million over budget, per The Hill. 

The DCHRMS was only intended to last one year and cost $36 million. But it is now in its eighth year, and is still expected to take another two years minimum before it can be implemented. 

“Further investment in the DCHRMS project would be throwing more good taxpayer money after bad,” Hegseth wrote in a memo, reviewed by The Hill.

The Pentagon is also cutting another $30 million worth of contracts with consulting firms, Hegseth said.

The secretary additionally noted that the DoD has saved approximately $800 million total since February 20. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.