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February 12, 2025

Defense Secretary Hegseth's contractor ties affect $816 billion Pentagon budget

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Pentagon procurement decisions questioned over official financial relationships

The Department of Defense’s annual budget for FY2025 is $816 billion, representing 54% of all discretionary federal spending and equaling the combined military budgets of the next ten largest spenders (Department of Defense Budget FY2025: https://comptroller.defense.gov/Budget-Materials/Budget2025/).

The F-35 Lightning II program is $183 billion over its original budget, seven years behind schedule, with a projected total cost of $1.7 trillion and ongoing performance limitations such as inability to fly in lightning (GAO-24-106154: https://www.gao.gov/products/gao-24-106154).

The top five defense contractors—Lockheed Martin, Boeing, Raytheon, General Dynamics and Northrop Grumman—receive approximately 40% of all Pentagon contract dollars, concentrating nearly half of procurement in a handful of firms (Pentagon Contractor Concentration Analysis: https://www.pogo.org/analysis/2023/06/pentagon-contractor-concentration).

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People, bills, and sources

Pete Hegseth (Secretary of Defense)

oversees the $816 billion annual Pentagon budget and has disclosed financial relationships with defense contractors now under scrutiny (Topic

What you can do

1

Review the Department of Defense Budget FY2025 on the Office of the Comptroller website (https://comptroller.defense.gov/Budget-Materials/Budget2025/) to confirm the full $816 billion in annual spending overseen by the Secretary of Defense.

2

Examine ethics disclosure requirements and recusal filings for Defense Department officials at the U.S. Office of Government Ethics (https://www.oge.gov/web/oge.nsf/Resources/Ethics+Rules+for+DoD+Officials) to identify any consulting fees, speaking engagements or board positions with defense contractors.

3

Query the Federal Procurement Data System (FPDS) at https://www.fpds.gov/ezsearch/FEEDS/ATOM?FEEDNAME=PUBLIC&q=AGENCY_CODE%3A%2297%22 to track the proportion of competitive awards (65%) versus sole-source awards (35%) in Pentagon contracting.