The Marine Corps alone passed its 2024 general fund audit, while most DoD branches faltered due to “material weaknesses” in financial controls, outdated siloed systems and poor accountability. Restoring News analyzed GAO reports finding the DoD operates 4,700 management systems — from procurement databases to payroll — 400 of which directly influence financial reporting. Many were designed before the era of personal computers, hindering interoperability and reliance on error-prone manual processes.
One glaring example: The Army’s handling of Ukraine aid contracts. A December 2024 audit revealed 75% of contracts for Operation Atlantic Resolve violated federal standards, leaving U.S. taxpayers exposed. Meanwhile, $290 million in contracts funded Ukrainian civil servant salaries and housing subsidies, diverting funds from military logistics.
“They’re essentially operating out of the Paleolithic era,” said Julia Gledhill, a Stimson Center analyst. “The DoD can’t even balance its books for a single day, let alone a $1.1 trillion budget.”
Fraud, wasteful contracts and national security risks
GAO audits uncovered brazen fraud attempts that endangered forces. Last year, a vendor submitted falsified documents to sell subpar bipod components for machine guns; engineers stopped the shipment before battlefield use, but the incident highlighted systemic vulnerabilities.
The Pentagon’s 2024 aid to Ukraine also sparked outrage, with 500 million siphoned into social programs often unrelated to defense, including payments to the designated Foreign Terrorist Organization (FTO) Taliban. AGAO investigation further revealed 1.8 million in payments to Taliban officials for “fees” linked to Afghans employed by the U.S.—violating U.S. sanctions.
Closer to home, the TRICARE health system paid 39% higher reimbursements in 2023 compared to 2021 for identical services, with regional disparities as stark as 11,500 vs.3,000 for military personnel’s sleep apnea devices. Auditors noted “reasonable” rates were never defined, costing taxpayers an extra $26 million.
Hegseth’s accountability push faces steep odds
Hegseth, a Trump appointee who once ran a right-wing media outlet, has framed accountability as his top priority. At a February Pentagon town hall, he promised, “By the end of my four years, the Pentagon will pass a clean audit — and taxpayers will know where their dollars are going.”
Congressional conservatives are now pushing legislation to slash budgets for failed departments by 20% until compliance is reached. “Until Pentagon leaders treat taxpayer money like it’s their own family’s inheritance, reforms won’t stick,” said one GOP aide.
Beyond band-aids
Reform advocates argue internal controls must outpace Congress’s fiscal handrails. GAO and Pentagon inspectors have issued hundreds of actionable recommendations, including overhauling financial IT systems, mandating real-time contract tracking and prioritizing payment integrity.
The Marine Corps’ 2024 success — its second consecutive clean audit — offers proof: centralizing financial systems and instilling cultural accountability among rank-and-file grantees.
“Everyone has a PPT [power point] deck and aspirations,” said a Pentagon insider. “But Hegseth will need to fire stubborn leaders to shake up bureaucracy.”
As the DoD strains under a record $1 trillion budget, and conflicts on multiple fronts, the 2028 deadline is fast approaching. Without dramatic turns, the Pentagon’s accountability failures could undermine national security even as Cold War-era systems fail.
The fiscal frontline
The Pentagon’s audit failures are more than a bureaucratic hiccup — they’re a beachhead in the broader battle for fiscal sanity. For a defense department that consumes nearly half the U.S. federal budget, accountability isn’t optional. As bipartisan pressure builds, Secretary Hegseth’s leadership will define whether the DoD returns to honor—from its warfighters to its financials.
This is a rush transcript. Copy may not be in its final form.AMY GOODMAN: President Trump’s crackdown on academic institutions in the United States was the focus of protests and commencement speeches this week as universities like Harvard held commencement ceremonies. The Trump administration has now directed federal agencies to review all remaining contracts with Harvard, after it already canceled nearly $3 billion in federal research grants for the university […]
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