By Alexandra Alper
WASHINGTON (Reuters) -Democrats took aim at the Trump administration after Reuters reported on Wednesday that the Navy and Air Force were poised to cancel nearly completed software projects worth over $800 million.
The reason for the move was an effort by some officials at the services to steer new projects to companies like Salesforce and Palantir, in what could amount to a costly do-over.
“The Pentagon has yet to show that it had a good reason for halting these contracts in the last inning and scrapping work American tax dollars have already paid for,” Democratic Senator Tim Kaine said in a statement. “If it can’t show its homework, then this announcement – just days after Palantir’s CEO spoke at Mike Johnson’s Wyoming donor retreat – reeks of corruption.”
Punchbowl reported this month that Palantir CEO Alex Karp planned to address Republican House Speaker Mike Johnson’s annual big-donor retreat in Jackson Hole, Wyoming.
The Pentagon and Air Force did not respond to requests for comment. The Navy declined to comment. Trump officials have said the administration is striving to make the contracting process more efficient.
The comments show growing concern among Democratic lawmakers over waste at the Pentagon, even as Donald Trump took office vowing to rid the government of waste and abuse. The website of the Department of Government Efficiency, the agency he created to spearhead those efforts, lists over $14 billion in Defense Department contracts it claims to have canceled.
But seven months into his presidency, some of his own actions have complicated DOGE’s work, from firing the Pentagon’s inspector general to issuing an executive order prioritizing speed and risk-taking in defense acquisitions.
“If you’re serious about cracking down on waste, fraud, and abuse, the last thing you’d do is cancel $800 million in projects that are nearly ready to roll out just to turn around and steer the same work to corporations of your choosing,” said Democratic Representative Maggie Goodlander, who sits on the House Armed Services Committee and served as an intelligence officer in the United States Navy Reserve.
“This maneuver is an insult to taxpayers and servicemembers across America,” she added.
Salud Carbajal, another House Democrat who sits on the Armed Services Committee, said the behavior was part of a pattern of waste at the Pentagon under Trump.
“I understand that our military’s acquisition and procurement processes aren’t flawless, but this administration has repeatedly shown a blatant disregard for the responsible use of taxpayer dollars,” said Carbajal, citing “lavish” military parades and “unnecessary” troop deployments in Los Angeles.
Democratic U.S. Representative Jill Tokuda, who also sits on the committee, echoed Carbajal’s remarks.
“Stripping away critical oversight guardrails is unnecessary and downright reckless,” she said, adding that after many delays, the Pentagon was finally poised to implement military pay systems that could pass an audit. “Taxpayers should not fund sweetheart deals for the well connected.”
(Reporting by Alexandra Alper; Editing by Andrea Ricci)
