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The Pentagon has ordered military leaders to identify $50 billion in budget cuts for fiscal year 2026 to redirect funds toward President Donald Trump’s national defense priorities. Defense Secretary Pete Hegseth aims to increase investment in the Asia-Pacific and strengthen U.S. border security.
Deputy Defense Secretary Robert Salesses confirmed the cuts target 8% of the Biden administration’s FY26 defense budget. Some military branches must propose reductions of 8% annually over five years, as outlined in a memo from Hegseth. Exemptions include U.S. Indo-Pacific Command, border security, missile defense, and autonomous weapons. However, commands overseeing Europe, the Middle East, and Africa are not exempt.
The Pentagon's budget nears $1 trillion annually, with $895 billion authorized in December under former President Joe Biden. Hegseth emphasized shifting focus from Europe’s security to U.S. border protection and countering China.
Elon Musk’s government downsizing teams have started reviewing Pentagon expenditures. Some civilian employees, particularly those hired within the past year, reported receiving notices about potential job separations. Critics argue that Musk lacks the expertise to restructure the Pentagon and warn that his team’s efforts could risk exposing classified programs.
Defense spending cuts often face opposition from lawmakers and contractors, who seek to protect projects benefiting their districts. Lockheed Martin highlights that the F-35 fighter jet program has suppliers in all 50 states. Musk, a key U.S. defense contractor, has criticized the F-35 program, calling it the “worst military value for money in history.”
As cost-cutting measures take shape, political and industry leaders will closely monitor how these changes impact national security and defense programs.
