U.S. Secretary of Defense Pete Hegset has halted all new military contracts as well as requests for new programs. This is causing shockwaves throughout the global defense industry.
This was reported by RBK-Ukraine citing Bloomberg.
According to sources from the publication, the pause may last from 10 days to several months. The suspension is partly linked to a review of diversity, equity, and inclusion provisions in contracts. However, it is also a reassessment that the Trump administration may undertake to set priorities and release funding.
The review does not affect the execution of existing contracts.
"Traditionally, the Army is currently conducting a review of existing requests and awarded contracts to ensure that our programs align with the policies and directives of the new leadership. We remain committed to the principles of transparency and responsible management of taxpayer funds," stated Army spokesperson Ellen Lovett.
Previously, we reported that Trump's nomination of Hegset for the head of the Pentagon shocked Washington. Additionally, according to media reports, Trump considered other candidates for the position of U.S. Secretary of Defense.
Recently, CNN reported that Hegset paid $50,000 to a woman who claimed he had harassed her. Western media noted that such a payment allegedly occurred as part of a confidentiality agreement with the victim.
To learn more about Hegset, see the separate article by RBK-Ukraine.