On Wednesday ( local time ), the Trump administration requested from the Pentagon to reduce its budget by 8 % annually or by$ 29 billion over the course of the next five years.
According to The Washington Post, which cited a note on the subject, Defense Secretary Pete Hegseth directed the Pentagon to review serious budget cuts.
The Pentagon’s 2025 resources stands at roughly$ 850 billion, with bipartisan agreement among politicians that such large spending is needed to store global challenges, especially from China and Russia. But, if the proposed cuts are fully implemented, the resources would shrink by tens of billions periodically, reaching around$ 560 billion within five years.
A previous Post report suggested young human employees, not uniformed military personnel, were the main targets, though it is unclear where the cuts will fall.
Elon Musk’s Department of Government Efficiency visited the Pentagon next week, and both the government and Congress are expected to be in opposition to the walk.
The Pentagon facing prospective budget cuts, which is currently around 3.4 % of GDP, would fall even further below the five cent level that some politicians have suggested.
The defense field experienced stock fluctuations as a result of the news, which caused major US companies ‘ stock prices to fluctuate. Northrop Grumman dropped nearly 2 %, while Lockheed Martin experienced a brief decline before regaining control. Palantir suffered the most severe blow, closing down more than 10 %.
