In a significant move, U.S. Defense Secretary Pete Hegseth has initiated a comprehensive review of the Defense Department’s 2026 budget, following reports of an intent to implement substantial cuts to military spending. The Pentagon confirmed that Hegseth is directing a reallocation effort aimed at identifying $50 billion to be repurposed within the budget, a shift believed to prioritize programs endorsed by former President Donald Trump over those established under his predecessor, Joe Biden.
Sources within U.S. media have indicated that Hegseth has instructed senior Defense Department officials to prepare for a potential cut of around eight percent to the defense budget annually. This could amount to approximately $290 billion in reductions over the next five years. Though the Pentagon did not outright deny these reports, it emphasized that the review is part of a broader strategy to adjust funding from Biden-era programs deemed as low-impact to align with Trump’s “America First” defense priorities.
Robert Salesses, who is currently performing the duties of deputy secretary of defense, elaborated that the review will focus on realigning the proposed cuts to ensure that funding is redirected to higher priority initiatives. “Secretary Hegseth has directed a review to identify offsets from the Biden administration’s FY26 budget that could be realigned… to align with President Trump’s America First priorities for our national defense,” Salesses stated.
According to a report from the Washington Post, Hegseth issued a memo outlining the parameters for the cuts. This memo, dated Tuesday, instructed that plans demonstrating how to achieve an eight percent reduction be submitted by February 24. The memo specifies 17 categories that Trump wants to be exempt from these cuts, which includes operations at the U.S.-Mexico border and the modernization of nuclear weapons and missile defense systems. Conversely, funding for initiatives such as the European Command, critical in the U.S. strategy regarding the ongoing war in Ukraine, appears to not be prioritized in the same manner.
Hegseth asserted that the Pentagon must “act urgently to revive the warrior ethos, rebuild our military, and reestablish deterrence,” highlighting a commitment to sharpen the focus on the Defense Department’s core mission of war readiness. His memo emphasizes the necessity of eliminating perceived excesses from the budget to enhance the overall efficiency of military spending and to foster actionable reforms, including advancements in budget audits.
The Pentagon’s budget for 2025 stands at approximately $850 billion, with the potential reductions outlined in Hegseth’s memo posing a significant impact on future allocations, potentially lowering expenditures to around $560 billion by the end of the five-year cycle.
Prominent figures in the Trump administration have expressed intentions to initiate sharp cuts in government expenditure, a commitment echoed by initiatives such as Elon Musk’s Department of Government Efficiency (DOGE), which is currently engaged with the Pentagon to assess areas for financial streamlining. Hegseth has publicly supported DOGE’s mission, calling for a concentrated effort to eliminate waste and reaffirming the need to enhance capabilities within military operations.
As the review progresses, it remains to be seen how these proposed changes will unfold, particularly concerning the balance of military capabilities and the evolving geopolitical landscape.
