U.S. DoD Ends 8 Years Overdue Software Project Among $580M Project Cuts

The U.S. Department of Defense (DoD) is terminating more than $580 million in programs, contracts, and grants as part of a broader effort to eliminate wasteful spending, Defense Secretary Pete Hegseth announced in a memo today.

Among the largest cuts is a software development project for the Defense Civilian Human Resources Management System, which was meant to modernize DoD’s HR operations. Launched in 2018 with an estimated cost of $36 million and a one-year timeline, the project is now eight years behind schedule and has exceeded its budget by $280 million.

“So, that’s 780% over budget; we’re not doing that anymore,” Hegseth said in a prerecorded statement.

The cuts also affect consulting contracts, including $30 million for a firm that purchased unused software licenses. Additionally, DoD is reducing $360 million in grants, including $6 million for decarbonizing Navy ship emissions, $5.2 million for diversifying the Navy, and $9 million for university research into “equitable AI and machine learning models.”

Hegseth emphasized that the savings would be redirected to ensure military personnel have the necessary resources.

“The warfighters are working hard, we’re working hard with them, and we have a lot more coming,” he said.

Today’s announcement brings total DoD spending reductions to $800 million since Hegseth first outlined the department’s cost-cutting strategy on February 20, 2025.