Washington: The Pentagon announced on Wednesday that it has directed military leaders to prepare a list of potential budget cuts amounting to approximately $50 billion for the fiscal year 2026. These funds will be redirected toward President Donald Trump’s national defense priorities.
This review could allow Defense Secretary Pete Hegseth to advance his goals of increasing investment in the Asia-Pacific region and prioritizing security along the U.S.-Mexico border.
It remains unclear how this initiative aligns with cost-cutting efforts led by Elon Musk’s government downsizing teams, which have already started working within the Pentagon, raising concerns among civilian employees about possible job cuts.
Robert Salesses, who is currently performing the duties of the deputy defense secretary, stated that the military would draft a list of potential savings after reviewing the budget prepared by the previous administration under President Joe Biden.
“The offsets amount to around 8% of the Biden administration’s FY26 budget, totaling approximately $50 billion, which will then be allocated to programs in line with President Trump’s priorities,” Salesses explained.
According to sources, Hegseth has instructed some military branches to propose cuts of up to 8% over the next five years.
Several key areas have been exempted from these budget cuts, including U.S. Indo-Pacific Command, border security operations, missile defense, and autonomous weapons programs. However, military operations in Europe, the Middle East, and Africa are not exempt from these reductions.
The U.S. defense budget is rapidly approaching $1 trillion annually. In December, then-President Joe Biden approved a $895 billion defense spending bill for the fiscal year ending September 30.
Hegseth has publicly emphasized that the Pentagon’s primary focus should be on border security and countering threats from China, rather than maintaining a heavy security presence in Europe.
As Musk’s teams begin their evaluations, some civilian employees have received notices that they may be removed from government service if they have been employed for less than a year.
This move has drawn criticism from political leaders across the spectrum, particularly due to concerns that vital and classified defense programs might be affected.
Elon Musk, who is himself a major U.S. defense contractor, has openly criticized expensive defense programs, particularly the F-35 fighter jet project. He previously posted on X (formerly Twitter), stating, “Some U.S. weapons systems are good, albeit overpriced, but please, in the name of all that is holy, let us stop the worst military value for money in history that is the F-35 program!”
