Trump administration to cut defense budget by 8% annually: Report

US President Donald Trump’s administration ordered the Department of Defense to slash spending, while exempting several programs, such as the expanded military mission along the US-Mexico border, according to a report.

US Secretary of Defense Pete Hegseth ordered senior Pentagon and military leaders to develop plans to cut the defense budget by about 8% over the next five years, The Washington Post reported, citing sources familiar with the matter on Feb. 19.

A memo cited by the newspaper showed that the administration plans to exempt 17 categories, including operations along the southern US border, nuclear weapons modernization, missile defense, and submarine procurement. Hegseth ordered the relevant proposals to be finalized by Feb. 24.

This came after the Trump administration requested lists of thousands of temporary Defense Department employees expected to be laid off this week. The Pentagon's budget for 2025 is estimated at $850 billion.