US halts all defense contract signings, Bloomberg reports
Photo: Pete Hegseth (Getty Images)
US Defense Secretary Pete Hegset has halted all new army contracts and requests for new programs. It causes shockwaves in the global defense industry, according to Bloomberg.
The pause may last from 10 days to several months. The suspension is partly related to a review of diversity, equity, and inclusion provisions in contracts, but it also involves a review by the Trump administration to set priorities and release funding.
The review does not affect the implementation of already signed contracts.
“As is customary, the Army is currently conducting a review of existing solicitations and awards of contracts to ensure that our programs are aligned with the incoming leadership’s policies and directives. We remain committed to transparency and being responsible stewards of taxpayer dollars,” said Army spokesperson Ellen Lovett.
Earlier, we reported that Trump's nomination of Hegset for the Pentagon chief position shocked Washington. According to media reports, Trump had considered other candidates for the role of US Secretary of Defense.
Recently, CNN reported that Hegset paid $50,000 to a woman who claimed he had sexually harassed her. Western media noted that the payment reportedly occurred as part of a confidentiality agreement with the victim.
Learn more about Hegset in the material by RBC-Ukraine.
