• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FinanceDepartment of Defense

Defense Secretary Hegseth tells Pentagon to cut 8% of its 2026 budget to fund Trump priorities

By
Tara Copp
Tara Copp
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Tara Copp
Tara Copp
and
The Associated Press
The Associated Press
Down Arrow Button Icon
February 20, 2025, 4:39 AM ET
United States Secretary of Defense Pete Hegseth speaks during a media conference after a meeting of NATO defense ministers at NATO headquarters in Brussels, on Feb. 13, 2025.
United States Secretary of Defense Pete Hegseth speaks during a media conference after a meeting of NATO defense ministers at NATO headquarters in Brussels, on Feb. 13, 2025. Virginia Mayo—AP

Defense Secretary Pete Hegseth has directed the military services to identify $50 billion in programs that could be cut next year in order to redirect those savings to fund President Donald Trump’s priorities.

Recommended Video

Hegseth has committed to redirecting Pentagon spending to more directly support warfighters. In a statement late Wednesday, Robert Salesses, who is performing the duties of deputy secretary of defense, said “the time for preparation is over” and “excessive bureaucracy” and programs targeting climate change or “other woke programs” such as diversity, equity and inclusion initiatives would be targeted.

“To achieve our mandate from President Trump, we are guided by his priorities including securing our borders, building the Iron Dome for America, and ending radical and wasteful government DEI programs and preferencing,” Salesses said.

Iron Dome is envisioned as an extensive, multilayered air defense system for the U.S. that Trump has said should include the ability to shoot down incoming missiles from space.

The roughly $50 billion would represent about 8% of the military’s budget. It was not immediately clear which parts of the Pentagon’s spending on diversity and equity programs, or its spending to address climate change — such as buying alternate fuels for aircraft, or making bases more resistant to the effects of extreme weather, such as the 2018 hurricane that caused significant damage to Tyndall Air Force Base in Florida — would be targeted or could add up to $50 billion in savings.

The spending cuts mandate comes as the military is quickly trying to build its fiscal year 2026 request, a congressional process that often starts late during transitions between new presidential administrations. Hegseth has asked the Pentagon to find offsets — programs that can be cut to achieve spending elsewhere — for fiscal year 2026, which starts Oct. 1.

The cuts would be as drastic as the single-year ordered savings across the military in the 2013 sequestration, a law passed by Congress that was intended to force the legislative branch to reach agreement on budget deficit reductions and instead forced the services to cut $56 billion in a matter of months.

Because of the way the military budget is structured, long-term, high-dollar procurement programs at the time were protected, as were most entitlements such as military retirement and health care.

At the time, the accounts that were easier to cut were found in operations, maintenance and personnel. The services lost noncommissioned officers — highly trained mid-level enlisted personnel — and cut training such as flight hours. Military training accidents quickly climbed.

In the years since the sequester, Congress and the services have directed additional protections to operations and maintenance spending.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Tara Copp
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Finance

EconomyAgriculture
More financially distressed farmers are expected to lose their property soon as loan repayments and incomes continue to falter
By Jason MaDecember 13, 2025
44 minutes ago
InvestingStock
There have been head fakes before, but this time may be different as the latest stock rotation out of AI is just getting started, analysts say
By Jason MaDecember 13, 2025
4 hours ago
Politicsdavid sacks
Can there be competency without conflict in Washington?
By Alyson ShontellDecember 13, 2025
4 hours ago
Investingspace
SpaceX sets $800 billion valuation, confirms 2026 IPO plans
By Loren Grush, Edward Ludlow and BloombergDecember 13, 2025
5 hours ago
PoliticsAffordable Care Act (ACA)
With just days to go before ACA subsidies expire, Congress is about to wrap up its work with no consensus solution in sight
By Kevin Freking, Lisa Mascaro and The Associated PressDecember 13, 2025
6 hours ago
InnovationRobots
Even in Silicon Valley, skepticism looms over robots, while ‘China has certainly a lot more momentum on humanoids’
By Matt O'Brien and The Associated PressDecember 13, 2025
6 hours ago

Most Popular

placeholder alt text
Economy
Tariffs are taxes and they were used to finance the federal government until the 1913 income tax. A top economist breaks it down
By Kent JonesDecember 12, 2025
1 day ago
placeholder alt text
Success
Apple cofounder Ronald Wayne sold his 10% stake for $800 in 1976—today it’d be worth up to $400 billion
By Preston ForeDecember 12, 2025
1 day ago
placeholder alt text
Success
40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate
By Preston ForeDecember 12, 2025
1 day ago
placeholder alt text
Economy
The Fed just ‘Trump-proofed’ itself with a unanimous move to preempt a potential leadership shake-up
By Jason MaDecember 12, 2025
1 day ago
placeholder alt text
Economy
For the first time since Trump’s tariff rollout, import tax revenue has fallen, threatening his lofty plans to slash the $38 trillion national debt
By Sasha RogelbergDecember 12, 2025
1 day ago
placeholder alt text
Success
Apple CEO Tim Cook out-earns the average American’s salary in just 7 hours—to put that into context, he could buy a new $439,000 home in just 2 days
By Emma BurleighDecember 12, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.