US Secretary of Defense Pete Hegseth has decided to suspend new contracts with the army and the introduction of new programs. This was reported by Bloomberg, according to UNN.
Details
This step is driven by the need to reassess the equity, fairness, and inclusion provisions in contracts. In addition, the new administration is seeking to set strategic priorities and reallocate resources. At the same time, existing contracts are being implemented without changes.
According to information, details on the scope and timing of the review have not yet been disclosed. Representatives of the military department emphasized that such actions are part of the usual practice after a change of leadership and are aimed at ensuring compliance with new political guidelines.
There is no official Pentagon position on this decision yet, and it is not known whether it will apply to other branches of the armed forces. According to the data, in fiscal year 2024, the army spent $113.8 billion on procurement under unclassified contracts.