Trump’s Pentagon pick vows audit overhaul, industry-friendly reforms

Stephen A. Feinberg, a private equity executive with over 40 years of finance experience but no prior government role, testified before the Senate Armed Services Committee on 25 February 2025, Feinberg outlined his vision to manage DOD's daily operations and budget, exceeding $800 billion on confirmation. He criticized DOD’s lack of financial metrics and proposed a “war room” to scrutinize every program and cost, aiming to pass a full audit—a milestone the DOD has missed since audits began in 2018, with past waste-reduction efforts often failing.

Feinberg also pledged to strengthen the defense industrial base by enhancing private sector collaboration and streamlining costly program requirements. Critics, however, caution that such deregulation might favor corporate profits over military readiness, pointing to historical reforms that boosted contractor influence without cutting costs. Meanwhile, Defense Secretary Pete Hegseth announced redirecting 8 percent of the DOD budget from nonlethal programs to amorphous America First priorities.