The US Department of Defense (DOD) has announced the termination of contracts for non-essential services totaling $5.1 billion, part of a broader trend of cuts aimed at reducing wasteful spending. Defense Secretary Pete Hegseth highlighted significant savings from consulting service contracts with major firms and plans to redirect these funds towards improving healthcare for warfighters. Although this reduction equates to only 0.58% of the overall defense budget, it signifies a continued effort to streamline DOD operations and minimize reliance on costly consulting services.
According to Hegseth, the funds saved through contract cuts would be better used to improve healthcare for US warfighters, rather than being burned on $500-an-hour consultants.
Hegseth emphasized the 'B' in 'billion' regarding the terminated contracts, highlighting the significant savings achieved by cutting non-essential services.
The DOGE-directed DOD savings of $5.1 billion represents about 0.58 percent of the defense budget, a modest trim already celebrated by the Pentagon.
We're also terminating, on the DEI front, 11 more contracts for DEI, climate, COVID-19 response, and related non-essential activities across the department.
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