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US Deputy Defense Secretary hopeful Stephen Feinberg has responded to in-depth questioning during his Senate confirmation hearing, detailing his plans for a Pentagon audit and priorities for revitalising America’s defence industrial base.
The nominee for the Pentagon’s top financial role, Stephen Feinberg, has vowed to overhaul the US Department of Defense’s (DOD) financial management and strengthen the nation’s struggling defence industrial base.
If confirmed, Feinberg will oversee the Pentagon’s daily business operations, manage its vast budget and execute the Defence Secretary’s strategic priorities.
His nomination comes at a time when America’s defence industrial base has faced serious challenges over the past 10 to 15 years. Successive budget constraints, supply chain weaknesses and inefficiencies in procurement processes have hindered the military’s ability to maintain its technological edge. The Pentagon has also failed multiple attempts at a full financial audit, raising concerns about transparency and accountability.
Feinberg believes significant improvements can be made in how the department conducts business.
“There is great opportunity to improve our cost structure, our efficiency, our operations and to really save a lot of money that could be redirected into our core mission,” he said during his confirmation hearing.
One of the key issues he highlighted was the Pentagon’s lack of financial accountability and the prevalence of outdated financial systems.
“There’s an awful lot of low-hanging fruit,” he said. “We can improve our cost structure significantly. This is my expertise – I’ve spent a career helping organisations improve.”
With more than 40 years of experience in financial markets, Feinberg was pressed by lawmakers on how he would help the DOD finally pass a financial audit. He criticised the lack of involvement of key personnel in budgetary details and pledged to take a hands-on approach.
“In my humble opinion, at times, some of the people in operational execution roles are not involved in the financial details as they should be,” he said. “If I’m confirmed, we’re going to set up a war room, and we’re going to go over every program, every cost, line by line, with an army of people, until it’s done.”
He emphasised that his approach would focus on understanding exactly where and how the Pentagon spends its money.
“We’re going to identify where the costs are, why we haven’t passed an audit, where the financial problems lie, and then develop a plan to fix them.”
Beyond budgetary concerns, Feinberg stressed the need to bolster America’s defence industrial base. Over the past decade, defence contractors have struggled with supply chain bottlenecks, workforce shortages and the slow pace of government acquisitions. The ability to produce critical hardware such as munitions, aircraft and naval vessels has been hampered by excessive bureaucracy and a shrinking manufacturing sector.
“Our supply chain is definitely weak. Our workforce needs improvement,” Feinberg said. “A big part of strengthening our supply chain is working more closely with private industry. We need people within government who understand how private sector companies operate, what drives their decision making, and how we can make it easier for them to develop and manufacture the weapons and equipment we need.”
He argued that better collaboration with the private sector would encourage more companies to enter the defence industry, addressing shortages and revitalising production capacity.
“We certainly have the manufacturing capability to meet these supply chain shortages and we need to encourage companies to step up and do it.”
His remarks follow a recent announcement by Defence Secretary Pete Hegseth that the Pentagon would redirect about 8 per cent of its budget away from non-lethal programs and inefficiencies, funnelling those funds into President Donald Trump’s national defence priorities.
Feinberg also pointed to inefficiencies in the Pentagon’s program requirements, arguing that they contribute to skyrocketing costs in defence projects, particularly for aircraft, helicopters and ships.
“Our program requirements are too rigid and expensive,” he said. “We can achieve the same goals with a simpler approach that cuts unnecessary costs.”
With America facing increasing geopolitical threats, Feinberg’s potential confirmation signals a push to rein in spending, streamline defence acquisitions and revitalise the nation’s military manufacturing base. Whether his ambitious plans will gain traction remains to be seen, but his pledge to shake up the status quo has drawn attention from both lawmakers and industry leaders.
