The Pentagon’s welfare racket needs to end



With tensions in Iran still boiling and our national debt hitting $40 trillion, it’s time to take a hard look at the military’s budget. We should preserve what the military needs to be capable and prepared — and cut the waste.

One little-known program has not only failed its mission but also driven excess government spending. The good news is that Secretary of War Pete Hegseth has already announced a review. The bad news? This program is so fundamentally defective that it should be abolished outright.

Every actor in the system profits from the abuse.

In the summer of 2024, a “socially disadvantaged” small business won two Defense Logistics Agency contracts worth more than $34 million. The firm then handed 95% of one contract’s value to Lockheed Martin and 94% of the other to a subsidiary of Leonardo DRS, two of the world’s largest defense contractors. The disadvantaged firm did little more than sign the paperwork and collect a fee.

The arrangement broke no law. It followed the standard business model of the Small Business Administration’s 8(a) Business Development Program, the federal government’s oldest identity-based contracting scheme — and one of Washington’s most durable corporate welfare rackets.

In January, Secretary Hegseth announced that the Pentagon would take a “sledgehammer” to the program and ordered a line-by-line review of every small business sole-source and set-aside award above $20 million. As he put it: “In many, many instances, these ‘socially disadvantaged’ businesses, they don’t even do work. They take a 10%, 20%, sometimes 50% fee off the top and then pass the contract off to a giant consulting firm.”

Hegseth has diagnosed the disease, but a contract review will not cure it. Several administrations and Congresses have tried to fix the 8(a) program. But all of them have failed because its own incentives reward the abuse. Congress cannot regulate those incentives away; it wrote them into the program’s design. The only reform that will work is to abolish the 8(a) program entirely.

Congress created the modern program in 1978, when it amended Section 8(a) of the Small Business Act to steer noncompetitive and set-aside contracts to firms owned by “socially and economically disadvantaged individuals.” The SBA promptly defined that term to cover nearly every racial and ethnic minority group while excluding white Americans. Lawmakers promised that nine years of preferential treatment would turn these firms into independent competitors. Nearly half a century later, the program has produced the opposite: a permanent class of pass-through firms selling access to the defense giants.

A Claremont Institute investigation found the same pattern under administrations of both parties. In 2011, under President Obama, EYAK Technology LLC subcontracted $2.6 million of a $2.9 million Army manufacturing contract — 91% of its value — to L3Harris Technologies.

Between 2009 and 2025, L3Harris received 47 subcontracts from 8(a) firms through the Department of Defense under prime contracts worth nearly $1 billion, and eight of those subcontracts exceeded 90% of the prime contract’s value. General Dynamics, Lockheed Martin, and other giants worked the same racket.

Reforms to the program keep failing because enforcement would require a small army of compliance officers. Even worse, every actor in the system profits from the abuse.

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EDUARDO SOTERAS/AFP/Getty Images

The 8(a) firms earn millions and face no pressure to build real capability. The defense giants pad their bottom line by accessing set-aside contracts they could never win directly. The contracting agency fills its procurement needs and hits the SBA’s small-business goals on paper. Nobody at the table has a reason to flip it over. The structure rewards dependency, not the development the program promises.

The program’s defenders blame a few bad actors, but the abuse flows from the design itself. Any program that confers preferential treatment on a favored class will produce the same result.

When government channels public money to a group in the name of solving its problems, the intended beneficiaries grow more dependent while middlemen and incumbents prosper at the taxpayer’s expense.

The Trump administration has made some encouraging early moves. The SBA demanded three years of financial records from participants and suspended roughly 1,000 firms that failed to produce them. Secretary Hegseth’s contract review shows the same willingness to act.

But audits and reviews leave the machine intact, and the next administration can switch it back on. As long as the program exists, the incentives will win.

Congress and the administration should stop trying to perfect the unreformable. After 48 years, the 8(a) program has failed its stated purpose and wasted taxpayer dollars while enriching prime contractors, pass-through firms, and the bureaucracy that certifies them. Secretary Hegseth should swing his sledgehammer through the program’s foundation and shut it down for good.

Editor’s note: This article was originally published at the American Mind.

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The Navy has a choice: Get better or become less relevant



The Navy has been through a lot over the past several months.

Ships have stayed at sea longer than planned. Sailors have missed more time with their families. Aircraft have flown hard. Weapons have been fired in numbers we have not seen in decades. Maintenance has been pushed to the right because the mission came first.

We cannot keep shrinking the number of ships while expanding the number of missions and pretend the math will somehow work.

Now the bills are going to start coming due.

Ships will return needing repairs. Aircraft will need maintenance. Magazines will need to be refilled. Sailors will need time at home. Families that have carried an enormous burden will want some normalcy back. All of that is understandable. But what happens next will tell us a lot about the future of the United States Navy.

We can spend the next few years talking about how hard the Iran fight was, how tired the force is, and how much everything costs. We can lower expectations, reduce deployments, accept fewer ships at sea, and convince ourselves that this is simply the new reality.

Or we can decide to get better.

That may sound overly simple, but it isn’t. This is the choice facing this generation of Navy leaders, Pentagon officials, members of Congress, and the defense industrial base. Iran did not create the Navy’s problems. It exposed them.

Listen to sailors and learn the right lesson

The extended deployment of the USS Abraham Lincoln has become the most visible example of the strain on the force. Sailors and families have expressed frustration about deployment length, uncertainty, limited port calls, and conditions aboard the ship.

When we ask young Americans to spend month after month away from their spouses and children, they have earned the right to tell us when things are not working. Navy leaders should pay attention to quality of life, communications, food, sleep, medical care, and the information families receive back home.

But we should be careful about the conclusion we draw from their frustration. The lesson cannot simply be that deployments should never run long again. Wars don’t care about deployment schedules.

America’s national security commitments don’t disappear because a carrier strike group has been gone for eight or nine months.

Sometimes the mission requires more.

The real lesson is that America needs enough Navy that asking more of our sailors during a crisis does not become the only option available. That means more ships, more aircraft, more weapons, more logistics capacity, and more people.

It also means accepting something we sometimes became uncomfortable saying during the long years of peacetime operations: Serving in the military is supposed to be hard.

We should take care of sailors and their families. We should fix unnecessary problems and hold leaders accountable for poor decisions. But we also need a Navy that expects its people to be tough enough to fight and win a war.

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Yuan Hongyan/VCG/Getty Images

The maintenance bill is coming

The bigger problem may be what happens when these ships finally come home.

Engines accumulate hours. Aircraft fly more sorties. Radars and combat systems operate continuously. Parts wear out. Repairs that might normally happen during a deployment get delayed because the ship is needed on station.

Eventually all of that work has to be done. And the Navy was already struggling with maintenance before the war. Public shipyards are overloaded. Private repair yards are stretched. Submarine maintenance has been a problem for years. Surface ships routinely spend longer in maintenance than planned.

Now we are going to add ships returning from combat operations. We should not act surprised when the backlog grows. The question is whether we do something about it.

That means putting real money into ship repair capacity. It means expanding public and private yards. It means training more welders, electricians, pipe fitters, and other skilled workers. It means using predictive maintenance and better data, so we know what is going to fail before it fails.

And it means getting serious about spare parts.

None of this is glamorous. There are no ribbon cuttings for having the right pump sitting on a warehouse shelf. But wars are often won by the side that can keep equipment operating.

Refill the magazines

Iran also reminded us that modern warfare burns through weapons quickly.

Missiles that take years to develop and months or years to produce can disappear from a ship’s magazine in minutes.

That should scare us, not because the Navy performed poorly — it performed extremely well — but because Iran is not China.

Imagine the weapons requirements of a sustained fight across thousands of miles of the Pacific against an adversary with a large navy, advanced aircraft, submarines, ballistic missiles, cruise missiles, and enormous industrial capacity.

The math gets uncomfortable quickly.

We should treat every weapon fired during the Iran conflict as a data point.

How quickly can we replace it?

If the answer is measured in years, we have a problem.

This is where the Pentagon and Congress need to stop treating munitions like boutique acquisition programs. We need production lines that can surge. We need long-term contracts that give manufacturers confidence to invest. We need second sources for critical components.

And we need deeper magazines.

You cannot surge missile production after the shooting starts.

Don’t become the Royal Navy

There is a historical warning here.

The British Royal Navy did not wake up one morning and suddenly stop being the world’s dominant navy.

The decline happened slowly.

Britain still had excellent ships. It still had talented sailors. It still had proud traditions. What it gradually lost was mass. The commitments remained large while the fleet became smaller. That should sound familiar.

America expects its Navy to deter China, operate in Europe, protect shipping in the Middle East, defend the homeland, reassure allies, and respond whenever something goes wrong anywhere in the world.

We cannot keep shrinking the number of ships while expanding the number of missions and pretend the math will somehow work. Eventually something gives. Iran gave us a warning. We should take it.

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BSIP/UIG/Getty Images

Get better

There will be a temptation after this conflict to focus almost entirely on recovery. The Navy absolutely needs to recover. But recovery cannot become retreat. This needs to be a period of brutal institutional learning.

What broke? What ran out? What took too long to repair? Which supply chains failed?

Capture those lessons and move out — don’t spend five years studying them.

Some fixes will require money. Others will require leadership. Many will require getting rid of processes and assumptions that made sense during peacetime but make no sense after experiencing sustained combat.

This should change how the Navy trains, buys weapons, maintains ships, designs the fleet, and supports families.

Most importantly, it should change the Navy’s mindset.

The service should come out of this tougher than it went in.

The choice

Every generation gets a few moments when the direction of an institution can change.

This is one of them.

Iran showed what sustained combat does to a Navy. A war with a peer competitor would ask far more. So we have a choice — slump our shoulders and talk about how difficult this is and how far behind we feel.

Or we can stop talking, learn from the last couple of years, and get better.

Fix the ships. Refill the magazines. Expand the yards.

Take care of Navy families. Demand better leadership. And expect toughness from the force.

The United States Navy is still the most capable navy in the world. The question is whether we intend to keep it that way.

Iran should not be remembered as the fight that wore down the U.S. Navy. It should be remembered as the fight that woke it up.

This article was originally published by RealClearDefense and made available via RealClearWire.

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Gay senior Pentagon official vows to 'undo' MAGA progress on undercover video. It doesn't go well.



Undercover reporter James O'Keefe has struck again.

The U.S. Navy has placed a senior Pentagon official on administrative leave after a hidden camera from a "gay" date with O'Keefe on July 6 appeared to catch the official criticizing President Donald Trump and vowing to reverse the administration's policy changes.

'Why do the gays in DC spill all the beans to me each and every single time?'

In footage shared to social media by O'Keefe on Wednesday, a disguised O'Keefe is out with an individual he identified as the director of business operations in the Office of the Secretary of the Navy, Brandon Newsom. On the video, Newsom claims to "oversee all corporate ops, so like HR, IT, security."

Newsom tells O'Keefe that while the Trump administration policies challenge his morals, "I want to stay and stick it out, so that way, when the time comes, I can undo whatever's been done [by the Trump administration]," video appears to show.

The alternative, he suggests in the video, is risking having someone who supports the administration take over his responsibilities.

When asked what specific policies he would seek to undo, Newsom appears to tell O'Keefe, whose disguise consisted of a blonde dye-job and a "Freddie Mercury" mustache, "I don't think there should be one specific prayer service."

The Pentagon's monthly voluntary worship services have ruffled feathers besides Newsom's in recent months.

Rachel Laser, the CEO of Americans United for Separation of Church and State, complained in March, "Even if these prayer services are presented as voluntary, there is pressure on federal employees to attend in order to appease their bosses — especially since these services occur amidst the Trump administration’s campaign to punish anyone who doesn’t comply with its Christian Nationalist agenda."

Newsom, who expressed an openness to holding a prayer service where "all religions are recognized," is apparently keen also on doing away with the administration's schedule policy/career reform, which he told O'Keefe directly impacted him.

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"I was converted to schedule policy, which means all of my protections as an employee have been stripped away," Newsom appears to say in the video. "Hopefully that's the first thing that gets undone."

Although he acknowledged that he lacked the authority to change policy, Newsom appears to tell the undercover reporter that he has "the influence."

In addition to apparently divulging his desire to see multiple MAGA policies reversed, Newsom appears to tell O'Keefe that rogue elements have already done their best to hinder implementation.

"There's a lot of things that they [the Trump administration] tried to do at the very beginning ... they've still not rolled out because you have certain folks in certain positions who can slow-roll things," Newsom appears to say in the footage.

Later in the video, O'Keefe's date appears not only to call Trump a "textbook narcissist" but claims that the Iran war is "completely stupid" and "based on one man's ego."

O'Keefe later tweeted, "Why do the gays in DC spill all the beans to me each and every single time?"

When asked for comment, the Pentagon referred Blaze News to the Navy, which did not immediately respond.

Acting Secretary of the Navy Hung Cao did, however, address the undercover report on Wednesday evening, stating, "The Department of the Navy takes the conduct shown in this video extremely seriously."

"Such statements and apparent intent to leverage a position to undermine the policies and direction set by our elected leaders are inappropriate and incompatible with the standards expected of Department personnel," continued Cao. "Effective immediately, this individual has been placed on administrative leave while we determine next steps to ensure accountability and protect the integrity of our mission."

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Pentagon identifies 2 US soldiers killed in Jordan — others remain unidentified



The Pentagon has named two previously unidentified U.S. soldiers who were killed in an Iranian attack in Jordan late last week.

On Monday, the Department of War identified the fallen soldiers as 1st Lt. Tyler James Feehan, 25, of Ewa Beach, Hawaii, and Pvt. Isabella Gonzales, 19, of Carrollton, Texas, both of whom were killed during an enemy attack at Muwaffaq Salti Air Base in Jordan.

'She gave the ultimate sacrifice for her country and will always be remembered as a hero.'

Pvt. Isabella Gonzales, who was killed in action on Friday, enlisted with the U.S. Army in 2025.

Gonzales was assigned to 1st Battalion, 57th Air Defense Artillery Regiment, 10th Army Air and Missile Defense Command, Fort Bragg, North Carolina. She served as a 14P Air and Missile Defense crew member, according to the 10th Army Air and Missile Defense Command Public Affairs press release.

“We are profoundly saddened by the loss of Pvt. Isabella Gonzales,” said Brig. Gen. Glenn Henke, commanding general of the 10th Army Air and Missile Defense Command. “She gave the ultimate sacrifice for her country and will always be remembered as a hero. Our hearts go out to her family, friends, and teammates. Our immediate priority is ensuring they have the resources and support they need to process this grief together.”

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1st Lt. Tyler James Feehan, who died on Saturday, was assigned to 2nd Battalion, 55th Air Defense Artillery Regiment, 32nd Army Air Missile Defense Command, Fort Bragg, North Carolina.

"1st Lt. Feehan’s unwavering dedication to our mission, our values, and the air defenders he led will leave an enduring legacy,” Brig. Gen. John Dawber, 32nd AAMDC commanding general, said. “We stand fully committed to supporting his family and loved ones through this incredibly difficult time, and we will never forget his ultimate sacrifice in defense of our nation.”

Feehan will receive "the Bronze Star, Purple Heart, and Combat Action Badge, and be posthumously promoted to captain," according to a U.S. Army press release.

"Godspeed, heroes. Their sacrifice only stiffens our resolve," Secretary of War Pete Hegseth said on Saturday, following an initial CENTCOM announcement of the casualties.

The CENTCOM post added that four American service members were medically evacuated to Jordanian hospitals and have since been discharged. Other personnel were evaluated for minor injuries and have since returned to duty.

CENTCOM also announced that "one service member is currently missing," in the same Saturday post.

The identity of the missing service member has not yet been confirmed, though a Central Command public release announced that U.S. military personnel found unidentified remains at the location on Sunday. The remains were being examined at the time of the release.

In the same release, CENTCOM announced a separate incident in northern Iraq that left one U.S. service member dead and another wounded during a "controlled detonation of unexploded ordnance from a downed Iranian one-way attack drone."

This brings the casualties over the weekend to at least three, with many more injuries being reported as well.

These announcements come at the end of more than a week of consecutive strikes against Iran as ceasefire negotiations continued to deteriorate. On Sunday, CENTCOM announced the conclusion of the ninth consecutive evening of strikes to "further diminish Iran's ability to attack commercial vessels and civilian mariners transiting the Strait of Hormuz."

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