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The Pentagon announced on Wednesday that it has instructed military leaders to identify potential budget cuts amounting to $50 billion from the fiscal year 2026 budget to redirect funds towards President Donald Trump’s national defence priorities.
The move could pave the way for Defence Secretary Pete Hegseth to advance Trump’s strategic goals, which include increasing investments in the Asia-Pacific region and strengthening security along the US-Mexico border. The restructuring also aligns with broader reforms initiated under the administration.
It remains unclear how this effort will integrate with cost-cutting initiatives led by Elon Musk’s government downsizing teams, which have begun operations at the Pentagon. Civilian employees are already bracing for potential job reductions.
Robert Salesses, who is performing the duties of the deputy defence secretary, stated that the military would assess potential savings by reviewing the budget proposed under former President Joe Biden.
“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 said.
A memo from Hegseth, reported by Reuters on Wednesday, outlined that select military branches were asked to propose cuts of up to 8% annually over the next five years. However, certain areas were exempt from reductions, including the US Indo-Pacific Command, border security operations, missile defence, and autonomous weapons development. Military commands overseeing operations in Europe, the Middle East, and Africa were not granted exemptions.
The Pentagon’s annual budget is nearing $1 trillion. In December, then-President Joe Biden signed a bill approving $895 billion in defence spending for the fiscal year ending September 30.
Hegseth has publicly emphasised that the Pentagon’s focus under Trump’s leadership will be on securing the US border and countering threats from China, stating that the US can no longer be “primarily focused on the security of Europe.”
Meanwhile, as Musk’s teams begin their budget reviews, some civilian employees reported receiving emails on Thursday warning that they could face separation from government service if they were hired within the past year.
Faridah Abdulkadiri
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