Pentagon Implements Strict Spending Limits Amid Cost-Cutting Measures

WASHINGTON, D.C. — The Pentagon has enacted stringent spending restrictions for federal civilian employees amid a broader initiative aimed at reducing wasteful expenditures. The measures, effective immediately, follow a recent executive order issued by the Department of Government Efficiency (DOGE), designed to hold government employees accountable for taxpayer spending.

According to newly released memos, civilian employees are effectively prohibited from traveling or making taxpayer-funded purchases. The spending limit for government-issued travel and purchase cards has been slashed to just $1, with Department of Defense (DoD) employees required to cancel all non-exempted travel plans and return to their permanent duty stations as soon as possible.

“DoD civilian employees must cancel all future non-exempted official travel reservations,” the memo states emphatically. Non-exempt travel includes conferences and other non-essential purposes unless approved through a formal justification process.

Additionally, the Pentagon has frozen all civilian credit cards for 30 days, which impact purchases from office supplies to items priced up to $10,000. These changes come in the wake of a February 26 executive order that mandated the DOGE to pursue cost-saving efforts across federal agencies.

At a recent meeting, U.S. Defense Secretary Pete Hegseth and British Defense Secretary John Healey discussed collaborative defense efforts, underscoring the critical nature of efficient resource utilization in national defense. The Pentagon’s spokesperson Sean Parnell reported that the department has already identified $80 million in wasteful spending, primarily linked to diversity, equity, and inclusion (DEI) and climate initiatives.

“We are looking meticulously at our operations to realize efficiencies that will save taxpayers’ money while maintaining our commitment to national defense,” said John Tenaglia, the Pentagon’s principal director of defense pricing, contracting, and acquisition policy. “We have also instituted a hiring freeze and will reduce our civilian workforce by 5-8% in the coming weeks.”

The Pentagon, which holds the largest agency budget at $840 billion, is not only constraining spending but also reevaluating its contracting processes. A comprehensive review is currently in process to build a centralized system for managing contracts and expenditures.

“The new system will allow for clearer insights into agency needs and justifications for spending, which will be critical for effective oversight,” Tenaglia noted in a memo. “The duration of our review period will extend until March 28, 2025, during which no new contracting officer warrant appointments will be issued.”