Pentagon orders budget revamp to reinvest $50 billion into Trump's defense priorities

The Pentagon said on Wednesday it was directing military leaders to draw up a list of potential cuts totaling about $50 billion from the upcoming budget for fiscal year 2026 to be redirected into President Donald Trump's priorities for national defense.

The review could set the stage for Defense Secretary Pete Hegseth to follow through with goals to invest more in the Asia-Pacific and prioritize securing the U.S. border with Mexico, along with other reforms.

It was unclear how the effort would square with other cost-savings initiatives led by Elon Musk's government downsizing teams, which have started working from the Pentagon as civilian employees brace for job cuts.

Robert Salesses, performing the duties of the deputy defense secretary, said the military would develop a list of potential savings after examining the budget drawn up by the previous administration of President Joe Biden.

"The offsets are targeted at 8% of the Biden administration's FY26 budget, totaling around $50 billion, which will then be spent on programs aligned with President Trump's priorities," Salesses said.

Reuters