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The Department of Government Efficiency (DOGE) has officially begun working with the Department of Defense, sparking discussions on how Elon Musk’s cost-cutting initiatives might impact the Pentagon budget.
On Friday, DOGE confirmed the collaboration through its X account, stating that it had a “great kickoff” and was “looking forward to working together to safely save taxpayer dollars and eliminate waste, fraud, and abuse.”
Pentagon Memo Suggests Significant Budget Reductions
While specific details on potential budget cuts remain undisclosed, The Washington Post reported on Wednesday that Defense Secretary Pete Hegseth has instructed senior leaders within the Department of Defense (DoD) to draft plans for an 8% budget reduction annually over the next five years.
In a memo to senior officials, Hegseth underscored the importance of President Donald Trump’s directive to “achieve Peace through Strength.” He emphasized the need to “urgently revive the warrior ethos, rebuild our military, and reestablish deterrence.”
Bloomberg reported Tuesday night that the Pentagon has started providing Trump’s team with lists of probationary employees who could be affected by federal workforce reductions.
Areas of the Defense Budget Likely to Be Spared
Despite the push for budget cuts, certain areas within the Defense Department may remain untouched. The Washington Post and Bloomberg reported that the Trump administration has identified 17 categories as exempt from budget reductions. These include:
- Operations at the southern U.S. border, a longstanding focus for Trump
- Modernization of nuclear weapons and missile defense
- Procurement of one-way attack drones
- Development of the Air Force’s new Collaborative Combat Aircraft
- Expansion of private-sector medical care for military personnel
Defense budget reductions of this magnitude are rare. Each year, Congress passes the National Defense Authorization Act (NDAA), which authorizes appropriations and policies for the DoD. Typically, the NDAA garners bipartisan support, making substantial budget cuts uncommon.
Hegseth’s Views on DOGE’s Role in the Pentagon
Bloomberg noted that the widespread presence of military bases and programs across the country often leads lawmakers to resist reductions that could negatively impact their constituencies. If the proposed 8% annual cuts proceed, it would mark the most significant reduction effort in more than a decade, according to The Washington Post.
On February 11, Hegseth expressed enthusiasm about Musk and DOGE’s involvement, calling Musk “a great patriot” and stating that DOGE could help improve efficiency at the Pentagon.
“There are waste, redundancies, and head counts in headquarters that need to be addressed,” Hegseth told reporters. He added, “There’s plenty of places where we want the keen eye of DOGE” to identify inefficiencies. However, he assured that any cost-cutting measures would be implemented “in coordination” to avoid compromising “American operational or tactical capabilities.”
Trump’s Mixed Messages on Defense Spending
Since taking office in January, Trump has sent conflicting signals regarding defense spending. Last week, he suggested that the U.S. military budget could be cut in half in the future, CNBC reported. However, just days earlier, he told Fox News that he intended to increase defense spending.
The Defense Department’s budget for fiscal year 2025 stands at approximately $850 billion. According to the Congressional Budget Office, national defense accounts for about one-sixth of total federal spending.
Under Musk’s leadership, DOGE has expanded its efforts across multiple federal agencies, aiming to eliminate inefficiencies and reduce wasteful spending. As of Monday, the agency claimed it had saved the government $55 billion through measures such as fraud detection, contract and lease cancellations, and regulatory reforms.
Despite its aggressive cost-cutting approach, DOGE has faced legal and political pushback. Critics, including Democratic lawmakers and nonprofit groups, argue that the agency is exceeding its authority by implementing staff reductions and gaining access to sensitive government data. However, on Tuesday, DOGE secured a legal victory when a federal judge rejected a request from 14 state attorneys general to block Musk and DOGE from accessing government data or terminating federal employees.
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