With tensions in Iran still boiling and our national debt hitting $40 trillion, it’s time to take a hard look at the military’s budget. We should preserve what the military needs to be capable and prepared—and cut the waste. One little-known program has not only failed its mission but also driven excess government spending. The good news is that Secretary of War Pete Hegseth has already announced a review. The bad news? This program is so fundamentally defective that it should be abolished outright.
In the summer of 2024, a “socially disadvantaged” small business won two Defense Logistics Agency contracts worth more than $34 million. The firm then handed 95% of one contract’s value to Lockheed Martin and 94% of the other to a subsidiary of Leonardo DRS, two of the world’s largest defense contractors. The disadvantaged firm did little more than sign the paperwork and collect a fee.
The arrangement broke no law. It followed the standard business model of the Small Business Administration’s 8(a) Business Development Program, the federal government’s oldest identity-based contracting scheme—and one of Washington’s most durable corporate welfare rackets.