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An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

An hour in the Oval Office with President Trump Fortune Editor-in-Chief: Alyson Shontell sat down with President Trump in the Oval Office for an hour. Tariffs, Intel, AI, Boeing, Iran—and the question every CEO eventually has to answer: who's next?

FinanceDepartment of Defense

Defense Secretary Hegseth tells Pentagon to cut 8% of its 2026 budget to fund Trump priorities

By
Tara Copp
Tara Copp
and
The Associated Press
The Associated Press
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By
Tara Copp
Tara Copp
and
The Associated Press
The Associated Press
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February 20, 2025, 4:39 AM ET
United States Secretary of Defense Pete Hegseth speaks during a media conference after a meeting of NATO defense ministers at NATO headquarters in Brussels, on Feb. 13, 2025.
United States Secretary of Defense Pete Hegseth speaks during a media conference after a meeting of NATO defense ministers at NATO headquarters in Brussels, on Feb. 13, 2025. Virginia Mayo—AP

Defense Secretary Pete Hegseth has directed the military services to identify $50 billion in programs that could be cut next year in order to redirect those savings to fund President Donald Trump’s priorities.

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Hegseth has committed to redirecting Pentagon spending to more directly support warfighters. In a statement late Wednesday, Robert Salesses, who is performing the duties of deputy secretary of defense, said “the time for preparation is over” and “excessive bureaucracy” and programs targeting climate change or “other woke programs” such as diversity, equity and inclusion initiatives would be targeted.

“To achieve our mandate from President Trump, we are guided by his priorities including securing our borders, building the Iron Dome for America, and ending radical and wasteful government DEI programs and preferencing,” Salesses said.

Iron Dome is envisioned as an extensive, multilayered air defense system for the U.S. that Trump has said should include the ability to shoot down incoming missiles from space.

The roughly $50 billion would represent about 8% of the military’s budget. It was not immediately clear which parts of the Pentagon’s spending on diversity and equity programs, or its spending to address climate change — such as buying alternate fuels for aircraft, or making bases more resistant to the effects of extreme weather, such as the 2018 hurricane that caused significant damage to Tyndall Air Force Base in Florida — would be targeted or could add up to $50 billion in savings.

The spending cuts mandate comes as the military is quickly trying to build its fiscal year 2026 request, a congressional process that often starts late during transitions between new presidential administrations. Hegseth has asked the Pentagon to find offsets — programs that can be cut to achieve spending elsewhere — for fiscal year 2026, which starts Oct. 1.

The cuts would be as drastic as the single-year ordered savings across the military in the 2013 sequestration, a law passed by Congress that was intended to force the legislative branch to reach agreement on budget deficit reductions and instead forced the services to cut $56 billion in a matter of months.

Because of the way the military budget is structured, long-term, high-dollar procurement programs at the time were protected, as were most entitlements such as military retirement and health care.

At the time, the accounts that were easier to cut were found in operations, maintenance and personnel. The services lost noncommissioned officers — highly trained mid-level enlisted personnel — and cut training such as flight hours. Military training accidents quickly climbed.

In the years since the sequester, Congress and the services have directed additional protections to operations and maintenance spending.

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