For decades, the U.S. Department of Defense has been plagued by waste, fraud, and mismanagement. With a budget larger than any other federal agency, the Pentagon controls over $3.1 trillion in assets, yet it has failed to pass an independent audit for over 30 years. The consequences are severe: billions of taxpayer dollars squandered on inefficiencies, overbilling, and fraud, all while our defense capabilities suffer. But efforts like the Department of Government Efficiency (DOGE) are beginning to address this crisis, uncovering even more waste and redirecting vital resources to where they can be used most effectively and efficiently.
The Government Accountability Office (GAO) documented the Pentagon’s financial mismanagement in 2024, providing examples of cost overruns, delays, and poor oversight. One example is the F-35 Lightning II fighter jet program. Despite a $400 billion price tag for the entire fleet, the program continues to face massive delays and underperformance. Lockheed Martin failed to deliver the aircraft on time 91 percent of the time, while engine supplier Pratt & Whitney missed every delivery deadline to date. These failures result in a significant waste of taxpayer funds, money that could be used for other lethal programs which enhance military readiness.
The Navy’s mismanagement of the $22 billion Constellation-class frigate program showcases the Pentagon’s inability to meet expectations. Originally scheduled to deliver its first ship by 2026, the program now won’t yield its first vessel until 2029—three years later than planned. This delay puts our Navy at a further strategic disadvantage, as the Navy wasted $1.84 billion modernizing four Ticonderoga-class guided missile cruisers that were never deployed again. Additionally, 16 of the Navy’s 32 amphibious ships are in “poor material condition.” Such inefficiencies directly impact the Pentagon’s ability to respond to threats, diminishing defense capabilities when they are needed most.
The Pentagon’s financial mismanagement is compounded by its failure to properly account for spending. In the 2022 Navy audit, $4.4 billion in untracked inventory was uncovered, and the Air Force found $5.2 billion in discrepancies. Contractors regularly overcharge the Pentagon by 40-50 percent, and in some cases, by as much as 4,451 percent.
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Worse yet, some funds have been completely misused. In 2021, the U.S. military was unknowingly funding “ghost troops” in the Afghan military, nonexistent soldiers who existed only on paper. These phantom personnel allowed corrupt Afghan officials to pocket millions of dollars, weakening the Afghan military and contributing to its collapse, one that damaged the military reputation of the United States and its allies abroad.
But under Secretary Pete Hegseth and the Trump administration, there is finally light at the end of the tunnel. The Department of Government Efficiency (DOGE) has begun to tackle this rampant waste and fraud. By increasing oversight and shining a light on systemic problems within the Pentagon, DOGE will ensure taxpayer dollars are spent more wisely, specifically on the service members who need it most. This new agency’s work is critical in making the Pentagon more transparent, accountable, and efficient, ultimately reallocating funds that would otherwise be wasted on bureaucratic inefficiencies and contractor profiteering.
For his part, Secretary Hegseth recently told senior Pentagon leadership to prepare to cut 8 percent, or around $50 billion, from the department’s budget over each of the next five years. Hegseth says this is part of his mission to reduce “excessive bureaucracy” and focus more on “the warrior ethos.” Specifically, Hegseth wants the Pentagon to target the “woke programs” that are expensive and bloat the Pentagon’s budget. Every dollar spent must be tied to outcomes rooted in our strategic imperatives.
It’s time for the Pentagon to urgently address its financial mismanagement. Each dollar wasted is one less dollar available to increase our ability to wage war and improve military readiness. Rooting out waste, fraud, and abuse will allow the Pentagon to operate more efficiently, freeing up funds to enhance capabilities and provide better support for the men and women who serve our country. With increased oversight from agencies like DOGE, we can finally ensure that defense spending is used where it’s needed most—on the troops who defend our nation.
Meaghan Mobbs, PhD, is the Director for the Center for American Safety and Security at Independent Women’s Forum. She is also the Military Advocacy and Policy Liaison for the Coalition for Military Excellence.
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