Follow us on social

Shutterstock_1794320848-scaled

The Pentagon fails its fifth audit in a row

If the Defense Department can't get its books straight, how can it be trusted with a budget of more than $800 billion per year?

Military Industrial Complex

Last week, the Department of Defense revealed that it had failed its fifth consecutive audit.

“I would not say that we flunked,” said DoD Comptroller Mike McCord, although his office did note that the Pentagon only managed to account for 39 percent of its $3.5 trillion in assets. “The process is important for us to do, and it is making us get better. It is not making us get better as fast as we want.”

The news came as no surprise to Pentagon watchers. After all, the U.S. military has the distinction of being the only U.S. government agency to have never passed a comprehensive audit.

But what did raise some eyebrows was the fact that DoD made almost no progress in this year’s bookkeeping: Of the 27 areas investigated, only seven earned a clean bill of financial health, which McCord described as “basically the same picture as last year.”

Given this accounting disaster, it should come as no surprise that the Pentagon has a habit of bad financial math. This is especially true when it comes to estimating the cost of weapons programs.

The Pentagon’s most famous recent boondoggle is the F-35 program, which has gone over its original budget by $165 billion to date. But examples of overruns abound: As Sens. Jim Inhofe (R-Okla.) and Jack Reed (D-RI) wrote in 2020, the lead vessel for every one of the Navy’s last eight combatant ships came in at least 10 percent over budget, leading to more than $8 billion in additional costs.

And another major overrun is poised to happen soon, according to a recent report from the Congressional Budget Office.

The Navy plans to expand its ship production in an effort to maintain an edge over China, with a particular focus on a new attack submarine and destroyer ship. The Pentagon has proposed three versions of this plan at an average cost of $27 billion per year between 2023 and 2052, a 10 percent jump from current annual shipbuilding costs.

But the CBO says this is a big underestimate. The independent agency’s math says the average annual cost of this shipbuilding initiative will be over $31 billion, meaning that the Navy is underestimating costs by $120 billion over the program’s life.

As Mark Thompson of the Project on Government Oversight recently noted, these overruns “shouldn’t come as a shock” to anyone who has paid attention to DoD acquisitions in recent years. “But it does suggest a continuing, and stunning, inability by the Navy to get its ducks, and dollars, in a row,” Thompson wrote.

So will the Pentagon manage to get its financial house in order any time soon? It’s possible, if a bit unlikely.

Despite the long odds, a bipartisan group of lawmakers led by Sen. Bernie Sanders (I-Vt.) proposed a bill last year that could help make that happen. The legislation would cut one percent off the top of the budget of any part of the Pentagon that fails an audit. That means that, if the proposal had already passed, 20 of the agency’s 27 auditing units would face a budget cut this year.

Unfortunately, momentum around that bill appears to have fizzled out, leaving the Pentagon’s accountants as the last line of defense. Per Comptroller McCord, the DoD hopes to finally pass an audit by 2027, a mere 14 years after every other agency in the U.S. government blew past that milestone. That may coincide with another historical moment, according to Andrew Lautz of the National Taxpayers Union.

“[W]e could reach a $1 trillion defense budget five years sooner [than the CBO estimates], in 2027,” Lautz wrote.

Responsible Statecraft’s independent, authentic journalism promotes democratic accountability and poses a transpartisan challenge to militaristic foreign policy! Responsible Statecraft is the online magazine of the Quincy Institute(QI). Please help us lift up new voices of realism and military restraint with your 100% tax-deductible donation to the Quincy Institute in support of Responsible Statecraft. Donate here.


gualtiero boffi/shutterstock
Military Industrial Complex
Trump ASEAN
Top photo credit: U.S. President Donald Trump looks at Philippine President Ferdinand Marcos Jr., next to Malaysian Prime Minister Anwar Ibrahim when posing for a family photo with leaders at the ASEAN Summit in Kuala Lumpur, Malaysia, October 26, 2025. Vincent Thian/Pool via REUTERS

‘America First’ meets ‘ASEAN Way’ in Kuala Lumpur

Asia-Pacific

The 2025 ASEAN and East Asia Summits in Kuala Lumpur beginning today are set to be consequential multilateral gatherings — defining not only ASEAN’s internal cohesion but also the shape of U.S.–China relations in the Indo-Pacific.

President Donald Trump’s participation will be the first by a U.S. president in an ASEAN-led summit since 2022. President Biden skipped the last two such summits in 2023 and 2024, sending then-Vice President Harris instead.

keep readingShow less
iran, china, russia
Top photo credit: Top image credit: Russian Deputy Foreign Minister Sergei Ryabkov and and Iranian Deputy Foreign Minister Kazem Gharibabadi shake hands as Chinese Vice Foreign Minister Ma Zhaoxu looks on during their meet with reporters after their meeting at Diaoyutai State Guest House on March 14, 2025 in Beijing, China. Lintao Zhang/Pool via REUTERS

'Annulled'! Russia won't abide snapback sanctions on Iran

Middle East

“A raider attack on the U.N. Security Council.” This was the explosive accusation leveled by Russian Deputy Foreign Minister Sergey Ryabkov this week. His target was the U.N. Secretariat and Western powers, whom he blamed for what Russia sees as an illegitimate attempt to restore the nuclear-related international sanctions on Iran.

Beyond the fiery rhetoric, Ryabkov’s statement contained a message: Russia, he said, now considers all pre-2015 U.N. sanctions on Iran, snapped back by the European signatories of the 2015 nuclear deal (JCPOA) — the United Kingdom, France, Germany — “annulled.” Moscow will deepen its military-technical cooperation with Tehran accordingly, according to Ryabkov.

This is more than a diplomatic spat; it is the formal announcement of a split in international legal reality. The world’s major powers are now operating under two irreconcilable interpretations of international law. On one side, the United States, the United Kingdom, France, and Germany assert that the sanctions snapback mechanism of the JCPOA was legitimately triggered for Iran’s alleged violations. On the other, Iran, Russia, and China reject this as an illegitimate procedural act.

This schism was not inevitable, and its origin reveals a profound incongruence. The Western powers that most frequently appeal to the sanctity of the "rules-based international order" and international law have, in this instance, taken an action whose effects fundamentally undermine it. By pushing through a legal maneuver that a significant part of the Security Council considers illegitimate, they have ushered the world into a new and more dangerous state. The predictable, if imperfect, framework of universally recognized Security Council decisions is being replaced by a system where legal facts are determined by political interests espoused by competing power blocs.

This rupture followed a deliberate Western choice to reject compromises in a stand-off with Iran. While Iran was in a technical violation of the provisions of the JCPOA — by, notably, amassing a stockpile of highly enriched uranium (up to 60% as opposed to the 3.67% for a civilian use permissible under the JCPOA), there was a chance to avert the crisis. In the critical weeks leading to the snapback, Iran had signaled concessions in talks with the International Atomic Energy Agency in Cairo, in terms of renewing cooperation with the U.N. nuclear watchdog’s inspectors.

keep readingShow less
On Ukraine and Venezuela, Trump needs to dump the sycophants
Top Photo Credit: (Official White House Photo by Molly Riley)

On Ukraine and Venezuela, Trump needs to dump the sycophants

Europe

While diplomats labored to produce the Dayton Accords in 1995, then-Secretary of Defense Bill Perry advised, “No agreement is better than a bad agreement.” Given that Washington’s allies in London, Paris, Berlin and Warsaw are opposed to any outcome that might end the war in Ukraine, no agreement may be preferable. But for President Trump, there is no point in equating the illusion of peace in Ukraine with a meaningless ceasefire that settles nothing.

Today, Ukraine is mired in corruption, starting at the very highest levels of the administration in Kyiv. Sending $175 billion of borrowed money there "for however long it takes" has turned out to be worse than reckless. The U.S. national sovereign debt is surging to nearly $38 trillion and rising by $425 billion with each passing month. President Trump needs to turn his attention away from funding Joe Biden’s wars and instead focus on the faltering American economy.

keep readingShow less

LATEST

QIOSK

Newsletter

Subscribe now to our weekly round-up and don't miss a beat with your favorite RS contributors and reporters, as well as staff analysis, opinion, and news promoting a positive, non-partisan vision of U.S. foreign policy.