Pentagon is reallocating $50 billion to defense priorities from the Trump administration

On Wednesday, the Pentagon announced that it is instructing military leaders to compile a list of potential budget cuts amounting to approximately $50 billion from the fiscal year 2026 budget. This funding is intended to be redirected towards initiatives aligned with President Donald Trump‘s national defense priorities.

This review may pave the way for Defense Secretary Pete Hegseth to implement plans that focus on increased investment in the Asia-Pacific region and enhancing security along the U.S.-Mexico border, among other reforms.

It remains uncertain how this initiative will align with other cost-reduction efforts spearheaded by Elon Musk’s government downsizing teams, which have begun their work at the Pentagon as civilian employees prepare for potential layoffs.

Robert Salesses, who is currently fulfilling the role of deputy defense secretary, indicated that the military will identify possible savings by reviewing the budget established by the previous Biden administration. “The offsets are aimed at 8% of the Biden administration’s FY26 budget, totaling around $50 billion, which will subsequently be allocated to programs that reflect President Trump’s priorities,” Salesses stated.

This announcement elaborates on a memo from Hegseth, reported by Reuters, in which he requested various military branches to suggest potential cuts as part of a proposed 8% reduction in their budgets over the next five years, according to U.S. officials.

There are numerous exemptions from these cuts, including U.S. Indo-Pacific Command, funding for military operations along the U.S. border with Mexico, missile defense, and autonomous weapons, as noted by one official. However, military commands responsible for operations in Europe, the Middle East, and Africa are not exempt from these budget considerations.

The Pentagon’s budget is nearing $1 trillion annually. In December, former President Joe Biden approved a bill that allocated $895 billion for defense spending for the fiscal year concluding on September 30.

Hegseth has publicly stated that the Pentagon’s priorities are centered on U.S. border security and the threats posed by China, asserting that the U.S. can no longer maintain a “primary focus on the security of Europe.” As Musk’s teams initiate their review, some civilian military employees reported receiving emails on Thursday indicating that they could be separated from government service due to their employment duration of less than a year.

Political leaders from various parties have consistently criticized the Defense Department for its waste and inefficiency. However, Democrats and civil service unions argue that Musk, as the wealthiest individual globally, lacks the necessary expertise to effectively restructure the Pentagon, raising concerns that his team’s efforts may jeopardize classified programs.

Efforts to cancel defense programs could provoke resistance from lawmakers eager to protect spending in their electoral districts, a reality that defense contractors are acutely aware of. For instance, the F-35 fighter jet has suppliers in all 50 states, a fact highlighted by Lockheed Martin on its website, which illustrates the economic benefits associated with the production of these jets. Musk, a significant U.S. defense contractor himself, has expressed particular criticism of certain defense initiatives, notably the F-35. He has remarked on X that while “Some U.S. weapons systems are good, albeit overpriced,” it is imperative to “stop the worst military value for money in history that is the F-35 program!”