U.S. Defense Spending and Efficiency Audit

By Phil Stewart and Idrees Ali

WASHINGTON (Reuters) – U.S. Defense Secretary Pete Hegseth stated on Tuesday his intention to increase overall U.S. defense spending and downplayed concerns about an upcoming audit by Elon Musk aiming to uncover billions in waste at the Pentagon.

While visiting Germany during his first overseas trip, Hegseth mentioned he had already contacted Musk and expressed confidence in the initiative to identify cost-cutting measures and improve Pentagon efficiency.

> “There are plenty of places (at the Pentagon) where we want the keen eye of DOGE, but we’ll do it in coordination,” Hegseth remarked, referring to Musk’s
Department of Government Efficiency. “We’re not going to do things that are to the detriment of American operational or tactical capabilities.”

Hegseth indicated he was already “intimately” engaged with significant committees in Congress regarding the enhancement of U.S. military capabilities.

Musk’s firms, such as SpaceX, hold substantial contracts with the Pentagon, raising notable conflict of interest concerns. U.S. President Donald Trump remarked that the Pentagon would soon be a primary target of Musk’s DOGE to review defense spending after addressing the Department of Education’s budget. Trump expects Musk to uncover hundreds of billions of dollars in fraud and abuse within the Pentagon.

Critics from across the political spectrum have long targeted wasteful spending at the Defense Department, yet Democrats and civil service unions argue that Musk lacks the necessary expertise to restructure the Pentagon, risking the exposure of classified programs.

Hegseth dismissed fears of extensive cuts to Pentagon agencies akin to those at the U.S. Agency for International Development, emphasizing: “The Defense Department is not U.S. AID.”

He claimed, “U.S. AID has a lot of problems … pursuing globalist agendas that don’t connect with America First. That’s not the Defense Department.”

Hegseth hinted that Musk might scrutinize Pentagon climate change initiatives but offered no specifics.

> “I hope to welcome Elon to the Pentagon very soon,” Hegseth said. “Look at the climate programs pursued at the Defense Department. The Defense Department is not in the business of climate change solving the global thermostat. We’re in the business of deterring and winning wars.”

In a recent statement, Trump’s National Security Adviser Mike Waltz indicated that the Pentagon’s shipbuilding practices could be a significant focus area for DOGE.

The Pentagon’s budget is nearing $1 trillion annually, with a bill signed in December by then-President Joe Biden authorizing $895 billion for defense spending for the fiscal year ending September 30.

While acknowledging worries about rising U.S. debt, which he cited as a “national security liability”, Hegseth argued for an increase in defense spending above what the Biden administration deemed acceptable, criticizing it for historically underinvesting in military capabilities.

> “The president is committed, as he was in the first term, to rebuilding America’s military by investing.”

Hegseth asserted that U.S. defense spending should remain above 3% of GDP, noting that in 2023, the U.S. spent about 3.4% of GDP on defense, according to the World Bank’s data from the Stockholm International Peace Research Institute.