Over the past three years, the Defense Department's budget has increased from about $700 billion to $850 billion.

Defense Secretary Pete Hegseth signed a memorandum Thursday outlining $5.1 billion in cuts to Department of Defense spending through terminated contracts. The Pentagon leader said the contracts amounted to “nonessential spending” on third-party consultants for services “more efficiently” performed by the department’s workforce using existing resources.

Defense Secretary Pete Hegseth announced that $5.1 billion in federal defense contracts will be cut as the Defense Department works with the Department of Government Efficiency to eliminate waste in the federal government.