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
US Marines
Top image credit: U.S. Marines with Force Reconnaissance Platoon, Maritime Raid Force, 31st Marine Expeditionary Unit, prepare to clear a room during a limited scale raid exercise at Sam Hill Airfield, Queensland, Australia, June 21, 2025. (U.S. Marine Corps photo by Cpl. Alora Finigan)

Cartels are bad but they're not 'terrorists.' This is mission creep.

Military Industrial Complex

There is a dangerous pattern on display by the Trump administration. The president and Secretary of Defense Pete Hegseth seem to hold the threat and use of military force as their go-to method of solving America’s problems and asserting state power.

The president’s reported authorization for the Pentagon to use U.S. military warfighting capacity to combat drug cartels — a domain that should remain within the realm of law enforcement — represents a significant escalation. This presents a concerning evolution and has serious implications for civil liberties — especially given the administration’s parallel moves with the deployment of troops to the southern border, the use of federal forces to quell protests in California, and the recent deployment of armed National Guard to the streets of our nation’s capital.

keep readingShow less
Howard Lutnick
Top photo credit: Commerce Secretary Howard Lutnick on CNBC, 8/26/25 (CNBC screengrab)

Is nationalizing the defense industry such a bad idea?

Military Industrial Complex

The U.S. arms industry is highly consolidated, specialized, and dependent on government contracts. Indeed, the largest U.S. military contractors are already effectively extensions of the state — and Commerce Secretary Howard Lutnick is right to point that out.

His suggestion in a recent media appearance to partially nationalize the likes of Lockheed Martin is hardly novel. The economist John Kenneth Galbraith argued for the nationalization of the largest military contractors in 1969. More recently, various academics and policy analysts have advocated for partial or full nationalization of military firms in publications including The Nation, The American Conservative, The Middle East Research and Information Project (MERIP), and The Seattle Journal for Social Justice.

keep readingShow less
Modi Trump
Top image credit: White House, February 2025

Trump's India problem could become a Global South crisis

Asia-Pacific

As President Trump’s second term kicked off, all signs pointed to a continued upswing in U.S.-India relations. At a White House press conference in February, Indian Prime Minister Narendra Modi spoke of his vision to “Make India Great Again” and how the United States under Trump would play a central role. “When it’s MAGA plus MIGA, it becomes a mega partnership for prosperity,” Modi said.

During Trump’s first term, the two populist leaders hosted rallies for each other in their respective countries and cultivated close personal ties. Aside from the Trump-Modi bromance, U.S.-Indian relations have been on a positive trajectory for over two decades, driven in part by mutual suspicion of China. But six months into his second term, Trump has taken several actions that have led to a dramatic downturn in U.S.-India relations, with India-China relations suddenly on the rise.

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.