Posted on January 19, 2026

Hegseth ‘Taking a Sledgehammer’ to Costly DEI Program You’ve Likely Never Heard Of

Mariane Angela, Daily Caller, January 16, 2026

Secretary of War Pete Hegseth said Friday the Pentagon is launching a sweeping crackdown on a little-known federal contracting program he said has become a breeding ground for waste, fraud, and race-based preferences.

Hegseth took to social media to announce a sweeping overhaul of the Small Business Administration’s 8(a) program, saying that the initiative has drifted from its original purpose and now siphons defense funds into what he described as corrupt diversity, equity and inclusion (DEI) schemes. He said the move follows through on promises he made after President Donald Trump appointed him to lead the Department of War, including redirecting taxpayer funds toward building a more lethal military.

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Hegseth identified the 8(a) program as a prime target, describing it as the oldest DEI program in the federal government and one largely unknown outside Washington.

“We’re actually taking a sledgehammer to the oldest DEI program in the federal government. A program few people outside of Washington have ever heard of, that I hadn’t heard of. It’s called the 8A program… 8A refers to the Small Business Administration’s program to assist, quote, small disadvantaged businesses owned by a socially disadvantaged individual or tribe, end quote. Providing these small businesses with opportunities is a laudable goal, but, over the decades, as it happens, the 8A program has morphed into swamp code words for DEI race-based contracting.” Hegseth said. “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, commonly known as Beltway Bandits.”

Hegseth said the Pentagon alone sends out enormous sole-source contracts through the program with little oversight or competition.

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