Feds waste billions keeping ancient tech on life support
The federal government’s bloated, outdated information systems have finally come under scrutiny. On his first day in office, President Trump signed a series of executive orders to cut waste and boost efficiency. Defense Secretary Pete Hegseth has reinforced that mandate, spending his first 100 days reviewing the Pentagon “from top to bottom to ensure that we're getting more, faster, better, and more efficient.”
Earlier this month, Hegseth announced that in partnership with the Department of Government Efficiency, officials had uncovered $5.1 billion in savings — “and that's just the beginning.” That’s a good start. But if the DOGE hopes to prove its worth, it must confront the federal government’s disastrous record on IT spending and performance.
Companies should not have to wade through red tape at every agency — or even within the same agency — to deploy new solutions.
It can’t happen fast enough. A staggering 80% of the annual $100 billion IT spending goes to maintaining decades-old systems. According to the Government Accountability Office, “The older the systems are, the more the upkeep costs — and older systems are more vulnerable to hackers.”
Not only is outdated software expensive to maintain, but it also poses a significant vulnerability for our government — and that is particularly dangerous when it comes to national defense.
The Trump administration should make it a top priority to modernize federal IT infrastructure while also addressing how we got such a dysfunctional IT infrastructure in the first place.
Targeting outdated regulations
In today’s AI world, government agencies cannot adapt to the most innovative and efficient technology when burdened with regulations often written before the internet even existed.
The Department of Defense is a prime example. The U.S. military buys IT systems in a ridiculously bureaucratic fashion. It takes years and millions of dollars for a company — regardless of size — to get its software approved just to pitch a product to the department. When time and money are of the essence, the only firms that can wade through the red tape are big, entrenched companies with lawyers and lobbyists to throw at outdated rules.
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This procurement model directly clashes with how the private sector works. In the business world, innovators attract investment quickly. The Pentagon, by contrast, consistently favors large, well-connected firms over smaller companies and startups. Promising new technologies get ignored.
It’s the defense contractor model over the SpaceX model — and we’re paying the price.
Streamlining the regulators
Fixing the rules isn’t enough. We need to fix the people who enforce them. Right now, overlapping Defense Department bureaucracies oversee the procurement and deployment of new technology. A single point of contact — with one set of rules — would reduce red tape and create a unified standard for the department to follow.
That standard should reach beyond the Defense Department. Companies shouldn’t have to navigate a maze of conflicting rules across agencies — or even within the same agency — just to deploy new solutions. Procurement reform, including better training and clearer rules, must be a core part of the DOGE’s mission.
Last year’s National Defense Authorization Act made some progress, but much more still needs to be done.
Falling behind on technological modernization in defense is not just an economic disadvantage but a threat to national security. As the DOGE takes a much-needed axe to inflated government spending, let’s make sure we also cut burdensome regulations that hinder innovation and improvement. We must unleash the power of American innovation to equip our military with the finest tools — otherwise, our enemies will beat us to it.
Senator Jack Reed. Photo by Nathan Posner/Anadolu via Getty Images
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