United States Department of Defense, Pentagon, has ordered military leaders to identify potential budget cuts totaling approximately $50 billion for fiscal year 2026 to redirect funds toward President Donald Trump’s national defense priorities.
The directive, announced on Wednesday, signals a shift in spending focus under Defense Secretary, Pete Hegseth, with increased investment expected in the Asia-Pacific region and U.S.-Mexico border security.
Robert Salesses, performing the duties of deputy defense secretary, confirmed that the proposed cuts would amount to roughly 8% of the budget inherited from the previous administration.
“The offsets are targeted at 8% of the Biden administration’s FY26 budget, totaling around $50 billion, which will then be spent on programs aligned with President Trump’s priorities,” Salesses stated.
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A memo from Hegseth, reported by Reuters, instructed certain military branches to propose spending reductions over the next five years, though key areas such as the U.S.
Indo-Pacific Command, border security operations, missile defense, and autonomous weapons were exempt. Meanwhile, commands overseeing Europe, the Middle East, and Africa were not given similar exemptions.
The Pentagon’s annual budget nears $1 trillion, with the latest defense authorisation under former President Joe Biden setting spending at $895 billion for the fiscal year ending September 30.
Hegseth has emphasised a strategic pivot away from Europe, stating that U.S. defense efforts must prioritise border security and countering threats from China. “He has said the U.S. can no longer be ‘primarily focused on the security of Europe,’” the report noted.
The budget overhaul comes as Elon Musk’s government downsizing teams begin their work from the Pentagon, raising questions about how their cost-saving initiatives will align with the military’s restructuring.
Civilian employees have already reported receiving notices on Thursday warning that some, particularly those hired within the past year, could face job separations.
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