Border enforcement programs are unaffected by a proposed 8 percent cut in U.S. military spending over the next five years

Hegseth said in a memo Tuesday that he directed "senior Pentagon officials," combatting commands, defense Department agencies, the military services and civilian agencies to come up with proposals to cut spending by 8 percent for fiscal 2026 and beyond. In the meantime, Hegseth wrote, "I will reassess my preparations" to date.

Hegseth listed 17 areas that "may not be subject to an 8 per cent spending cut". In addition to border enforcement, the list of exemptions includes Virginia-class submarines, the so-called "executable Surface Ship Program," homeland missile defense, the Air Force's new cooperative combat aircraft, one-way attack drones, "priority critical cybersecurity, munitions, Indo-Pacific Command construction projects," and private sector health care.

The military command, which oversees military operations in Europe, the Middle East and Africa, is not exempt.

Reuters quoted officials as saying Hegseth had given them until February 24 to submit proposals. Hegseth does not appear to want to make significant budget cuts, officials said, but instead wants to reprioritize funding to better align with Trump's national security priorities.

The Pentagon budget is close to $1 trillion a year. In December, then-President Joe Biden signed a bill authorizing US $895 billion (S $1,0201 billion) in defence spending for the fiscal year ending Sept 30.

Mr. Hegseth has said publicly that the Pentagon's focus is on the United States. Border security and threat posed by China. He noted that the United States can no longer "focus primarily on European security."

Playing to a favorite theme of President Trump and Hegseth, the memo calls for a focus on excessive bureaucracy and spending on programs related to climate change and diversity, Equity, and Inclusion (DEI). Hegseth called these projects "low-impact" and "a waste of resources."