Spending Cutback Absorbs $5.1 Billion from the Pentagon

12th April 2025

1 minute read

Spending Cutback Absorbs $5.1 Billion from the Pentagon

U.S. Secretary of Defense, Pete Hegseth, announced that the Pentagon will reduce “unnecessary” spending by $5.1 billion.

The cuts include grants provided to two prominent U.S. universities, according to the AFP news agency.

Hegseth said in a video posted on the “X” platform, “We will sign in the meantime a memorandum that orders the termination of contracts with the Department of Defense worth $5.1 billion.”

This announcement is part of a large federal program to reduce the budget, which was pledged by Elon Musk, with the approval of President Donald Trump, as part of his mandate for government efficiency.

The affected expenses include $500 million in grants allocated to Northwestern University and Cornell University, which were described as “academic institutions that tolerate anti-Semitism and support divisive diversity, equity, and inclusion programs.”

For its part, the Cornell University presidency said in a statement on Tuesday that it had received 75 orders to halt work from the Department of Defense regarding research “critical to national defense, cybersecurity, and health in the United States.”

One of the grants mentioned concerns cancer research, according to the statement.

Pete Hegseth pointed out that eleven contracts related to diversity, equity, inclusion, climate, and the COVID-19 pandemic response, as well as “non-essential activities,” were also halted.

He clarified, “We need this money to improve healthcare for our fighters and their families, rather than paying $500 an hour to consultants.”

The Pentagon‘s budget for 2025 is around $850 billion.

In February, the Secretary of Defense ordered in a memorandum seen by the Washington Post to implement measures aimed at reducing his department’s budget by 8% annually, as part of the administration’s efforts to cut overall government spending.