Defense Secretary Pete Hegseth has directed top Pentagon budget reduction plan officials an 8% annual reduction in the defense budget over five years. This initiative, revealed by, faces opposition within the Pentagon and Congress, where there is consensus on maintaining high spending to counter global threats.
Strategic Areas Exempt from Cuts
The memo confirms 17 exemptions, focusing on nuclear modernization, missile defense, and border security. Critical funding for attack drones remains safeguarded. Essential munitions supporting U.S. warfighting capabilities will continue receiving priority. These measures aim to strengthen national defense while maintaining strategic readiness.
Financial Impact on the 2025 Budget
With a budget of approximately $850 billion, the Pentagon would face tens of billions in annual cuts if implemented. The measure represents the most significant budget adjustment since 2013, when Congress approved automatic reductions known as “sequestration.”
Support for Key Strategic Commands
The document advocates maintaining funding for key commands, including Indo-Pacific, Northern, and Space Commands. However, it excludes European Command, vital to the Ukraine strategy, Central Command, responsible for the Middle East, and Africa Command, overseeing operations on the continent.

Mary Daly Emphasizes the Need to Maintain Restrictive Monetary Policy
Mary Daly, president of the Federal Reserve Bank of San Francisco, stated that…
Hegseth’s Vision: Reforms and Efficiency
Hegseth’s memo underscores Trump’s mandate to “achieve peace through strength” as a strategic priority. He stresses revitalizing forces and streamlining bureaucracy. Enhancing audits and cutting unnecessary expenses remain crucial for operational readiness. This approach aims to bolster military effectiveness while ensuring fiscal efficiency.
Pentagon’s Official Response Pending
Hegseth’s spokesperson, John Ullyot, confirmed the Pentagon will release a formal response soon. The directive sparks concerns about national security risks. Experts debate its potential consequences on military readiness and strategic operations. Officials emphasize the importance of addressing uncertainties to maintain defense effectiveness.
Concerns Over History of Cuts
If enacted, these cuts would resemble the 2013 crisis, where automatic reductions harmed operational capability. Bipartisan lawmakers caution against weakening military readiness. They emphasize risks amid escalating geopolitical tensions and global security threats. Strategic stability requires balancing fiscal responsibility with national defense priorities.
