President Trump has ordered Elon Musk and the Department of Government Efficiency (DOGE) to examine Pentagon expenditures following the Defense Department’s seventh consecutive failed audit. The
announcement came during a pre-Super Bowl interview with Fox News host Bret Baier, where Trump outlined plans for DOGE to scrutinize both the Defense Department and Department of Education.
Speaking alongside Japanese Prime Minister Shigeru Ishiba at a press conference, Trump expressed confidence that Musk would uncover significant waste and misuse of funds, though he suggested the scale might not match recent findings at USAID, where 97% of staff were recently placed on leave amid allegations of billions in stolen funds.
The Pentagon review represents a massive undertaking, given the department’s annual budget of approximately $800 billion and workforce of 3.3 million personnel, including both military and civilian employees. Notably, the Defense Department has consistently failed to pass its financial audits, with the Marine Corps being the sole exception.
Musk, serving as a special government employee and key adviser to Trump, leads DOGE with an ambitious target of reducing federal spending by $2 trillion by July 2026. The agency recently reported success in cutting over $1 billion through various measures, including the elimination of DEI-related contracts and halting certain foreign organization payments.
In a significant development, Musk announced that DOGE and the Treasury Department have collaborated on new anti-fraud initiatives designed to prevent billions in fraudulent government payments. These measures include mandatory payment categorization codes and rationales for all government disbursements, as well as enhanced implementation of the DO-NOT-PAY list targeting fraudulent entities and terrorist organizations.
Musk expressed particular concern about reported entitlement payments exceeding $100 billion annually to individuals lacking Social Security numbers or temporary identification. According to Treasury consensus, approximately half of these payments – around $50 billion yearly – likely constitute clear fraud.
Treasury Secretary Scott Bessent has defended DOGE’s approach, emphasizing to Bloomberg that the agency employs highly qualified professionals rather than operating as an unstructured disruptive force. This statement appeared to address criticisms of DOGE’s adoption of Silicon Valley’s “move fast and break things” philosophy.
The examination of Pentagon spending follows DOGE’s broader efforts to identify and eliminate government waste and fraud. This initiative has already led to significant changes in various federal departments, with the agency implementing stricter payment protocols and enhanced oversight measures.
The new anti-fraud framework represents a fundamental shift in government payment procedures, with Musk noting that these changes should have been implemented long ago. The measures focus on creating clear audit trails and establishing stronger verification processes for government disbursements.
These reforms come amid growing concerns about federal spending efficiency and accountability. The Pentagon’s repeated audit failures have highlighted the need for improved financial management within one of the government’s largest departments. With DOGE’s involvement, the administration aims to bring greater transparency and fiscal responsibility to military spending.
The initiative reflects a broader push by the Trump administration to streamline government operations and reduce wasteful spending across federal agencies. As DOGE continues its work, the focus on Pentagon spending represents one of its most significant challenges yet, given the department’s size and complexity.