Pete Hegseth. Photo: Stephanie Reynolds / Bloomberg / Getty Images
US Secretary of Defence Pete Huckabee has decided to suspend all new contracts for the Army and applications for new defence programmes. The decision, which was announced on 28 January, follows President Donald Trump’s executive order to end the Diversity, Equity and Inclusion (DEI) programme, which caused a significant shock in the defence industry.
According to Bloomberg, the pause in contracts may last only a few days, but there is a possibility that this process could last for several months. Sources indicate that the delay is due to a review of contract terms regarding diversity and inclusion, but the new administration may also use this time to assess priorities and determine funding areas.
At the same time, the review of the agreements will not affect the execution of already concluded contracts, the Pentagon assures. The US Army confirmed the review and stated that “contracting activities are ongoing”, but the details of the process have not yet been disclosed.
According to the agency, the army’s spending on procurement under unclassified contracts in fiscal year 2024 reached $113.8 billion.
