Follow us on social

Capital Washington D.C. Pentagon Department of Defense DOD

Report: Pentagon will likely fail audits through 2028

GAO says DOD still ‘faces significant fraud exposure’ and massive financial deficiencies

Reporting | Washington Politics

The Defense Department has not taken adequate measures to address “significant fraud exposure,” and its timeline for fixing “pervasive weaknesses in its finances” is not likely to be met, according to a recently released government report.

The Government Accountability Office conducted the report to assist the Pentagon in meeting its timeline for a clean audit by 2028. DOD has failed every audit since it was legally required to submit to one each year beginning in 2018. In fact, the Pentagon is the only one of 24 federal agencies that has not been able to pass an unmodified financial audit since the Chief Financial Officers Act of 1990.

For more than two decades, the GAO has given over 100 recommendations on how the Pentagon can fix its financial weaknesses. Most cases are still open, with no progress satisfied other than a “leadership commitment.” Additionally, many of the thousands of identified deficiencies found in its 2018 audit remain outstanding.

Indeed, the GAO found that “to achieve a department-wide clean audit opinion by December 2028, the DOD needs to accelerate the pace at which it addresses its long-standing issues.”

GAO advises DOD to implement a fraud risk management system. From 2017 to 2024, the DOD reported $10.8 billion in confirmed fraud. While that number is small compared to the Pentagon’s budget over those years, “recoveries and confirmed fraud reflect only a small fraction of DOD’s potential fraud exposure,” the GAO says.

Examples of more egregious cases of fraud and abuse at the Pentagon — like the $52,000 trash can or the $7,600 coffee maker — have been well-documented over the years. But others are a bit more granular. The new GAO report noted that the Pentagon purchased a machine gun bipod component with subpar manufacturing standards because a vendor fraudulently edited paperwork to reflect a higher manufacturing score. Luckily, engineers caught the deficiency before the bipods entered the battlefield, but the incident could have placed soldiers in harm’s way.

Defense Secretary Pete Hegseth promised to return a clean DOD audit by the end of Trump’s administration, an outcome the GAO report and experts say is unlikely, barring significant changes.

Despite inadequate answers to these massive financial deficiencies, President Trump has ordered the Pentagon to increase its budget to over $1 trillion, up from the around $850 billion that the Biden administration requested for FY 2025.

“Congress set an ambitious deadline for the Pentagon to achieve an unmodified audit opinion in 2028, but there's little evidence to suggest the department can meet it,” says Julia Gledhill, Research Associate at the Stimson Center. “Lawmakers would be better off lowering Pentagon spending, which would help the department mitigate the risk of contractor fraud. With more limited resources, the Pentagon would have to tackle the issue head-on."


Top photo: credit Shutterstock. A 5% hike in US military spending would be absolutely nuts
A 5% hike in US military spending would be absolutely nuts
Reporting | Washington Politics
Ukraine war
Top image credit: HC FOTOSTUDIO via shutterstock.com

Should a Russia-Ukraine peace leave territorial control for later?

Europe

Since the beginning of President Donald Trump’s second term, there have been ongoing diplomatic efforts to broker a peace settlement in the three-year-long war between Russia and Ukraine. So far, however, negotiations have failed to bridge the stark divide between the two sides.

Two of the key contentious issues have been post-war security guarantees for Ukraine and the political status of Ukrainian territory claimed or annexed by Russia. Specifically, regarding territorial sovereignty, Ukraine and Russia have rejected the United States' proposal to “freeze” the war along the current line of conflict as a de facto new border. Ukraine has refused to renounce its claims of sovereignty over territories occupied by Russia (including Crimea, which was annexed in 2014). Russia, in turn, has demanded Ukraine’s recognition of Russia’s territorial claim over the entirety of the four Ukrainian regions, which Russia annexed in 2022.

keep readingShow less
Submarine based cruise missiles
Top photo credit: An official USN rendering of an Ohio-class submarine VLS system firing Tomahawk missiles (Wikipedia/US Navy)

Navy pushing billions for sea-based nukes that nobody seems to want

Military Industrial Complex

Sea-launched, nuclear-armed cruise missiles, or SLCM-Ns, were considered unnecessary for U.S. national security for years. But now, the Navy’s pushing to bring SLCM-Ns back — even if doing so costs taxpayers billions.

Indeed, U.S. Navy Vice Admiral Johnny Wolfe told House Armed Services Committee members on May 7 that the Navy was fast tracking the development of the Sea-Launched Cruise Missile - Nuclear, known as the SLCM-N, along with the Trident II D5 Strategic Weapons System and hypersonic missiles.

keep readingShow less
lockheed martin
Top photo credit: The Lockheed Martin Corporation on display during the Seoul International Aerospace and Defense Exhibition(ADEX) 2023 at the Seoul Air Base on October 18, 2023 in Seongnam, south of Seoul. (Photo by Chris Jung/NurPhoto)

Bipartisan bill seeks to put arms sales lobbyists on ice for 3-years

Military Industrial Complex

President Donald Trump announced some $200 billion in potential arms sales to Saudi Arabia and Qatar a week ago — this is huge potential business for major U.S. defense contractors like RTX, Lockheed Martin, Northrop Grumman and General Atomics, all of which deploy armies of lobbyists in Washington each year to influence such contracts.

A new bipartisan bill dropping this week will impose some of the strictest bans to date to make sure former government officials aren’t lobbying on behalf of those big companies or foreign countries to get their share of this massive federal pie. In fact, the legislation will make it a crime to do so.

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.