Fact Sheet: President Donald J. Trump Modernizes Defense Acquisitions and Spurs Innovation in the Defense Industrial Base

Fact Sheets

TLDR

This is a “fact” sheet for executive order that aims to reform defense acquisition by expediting procedures, reducing bureaucracy, and promoting commercial solutions. It requires the Defense Secretary to submit reform plans, establishes penalties for programs exceeding cost/schedule by 15%+, and cites delayed programs as justification. Critics note the order oversimplifies complex acquisition issues, ignores that many cited delays began during Trump’s first term, lacks accountability mechanisms, misattributes longstanding problems to the previous administration, promotes “calculated risks” without defining protections, and lacks specific implementation metrics.

This is a “fact” sheet for an executive order that aims to reform and modernize the defense acquisition process by expediting procedures, reducing bureaucracy, and encouraging commercial solutions and innovation. It requires the Defense Secretary to submit plans for reforming acquisition processes, reviewing regulations, and reforming the acquisition workforce. The order establishes penalties for major programs exceeding schedule or budget by 15% or more. The administration justifies this by citing examples of delayed programs like the new Air Force One, Navy ship programs, the Sentinel ICBM, and aircraft carrier overhauls.

The executive order and fact sheet do identify real/legitimate problems in defense acquisition but present several concerns:

The order mandates cancellation scrutiny for programs exceeding 15% cost/schedule thresholds without acknowledging the complex reasons defense programs typically experience overruns. This rigid metric fails to consider capability importance, sunk costs, or alternatives.

Citing specific program delays without context ignores that many began during Trump’s first administration. For instance, the Air Force One contract was awarded in 2018 during his previous term, yet is presented as evidence of the current administration’s mismanagement.

The order emphasizes speed and flexibility but does not address how to balance these with program oversight and accountability. Previous acquisition reforms focused on speed have sometimes resulted in failed programs that wasted resources.

The executive order frames acquisition issues as recent developments under “the previous administration” when these are long-standing systemic challenges spanning multiple administrations, including Trump’s first term.

The order promotes “calculated risks” for acquisition personnel without defining protections for those who take such risks that result in failures, potentially creating perverse incentives.

While streamlining bureaucracy is generally positive, the specific metrics and mechanisms for implementation remain vague, potentially leading to inconsistent application across the DoD.

OVERHAULING THE ACQUISITION SYSTEM: Today, President Donald J. Trump signed an Executive Order modernizing defense acquisitions and spurring innovation in the defense industrial base.

  • The Order directs the Secretary of Defense to submit a plan to reform our acquisition process by: (1) using existing authorities to expedite acquisitions, such as a first preference for commercial solutions; (2) cutting unnecessary tasks, reducing duplicative approvals, and centralizing decision making; and (3) managing risk while encouraging innovation.
  • The Secretary of Defense will review internal Department of Defense (DoD) regulations with the intent to eliminate any unnecessary supplemental regulations and promote expedited and streamlined acquisitions.
  • The Secretary of Defense will also submit a plan to reform, right-size, and train the acquisition workforce by focusing performance evaluations on how well the employee uses efficient procurement methods and takes calculated risks in order to innovate.
  • All Major Defense Acquisitions Programs (MDAPs) will be reviewed to determine consistency with this new policy based on speed, flexibility, and execution.
    • Any program more than 15% behind schedule or 15% over cost will be scrutinized for cancellation.

STRENGTHENING OUR MILITARY EDGE: After years of mismanagement and inertia, President Trump is reprioritizing our defense acquisition system.

  • America’s defense acquisition workforce is a national strategic asset critical to maintaining military superiority, and its personnel must deliver on enhancing warfighting capabilities rather than being bogged down with bureaucratic procedures.

  • For decades, mountains of red tape have stifled innovation and slowed the defense industrial base’s ability to respond to emerging global threats and even basic requirements.

    • The new Air Force One is now five years behind schedule, delayed until 2029 or later, despite the contract being awarded in 2018.

    • Nine Navy ship programs (not just individual ships, but the entire procurement program) are between one and three years behind schedule.

    • The first flight of the Air Force’s new ICBM, the Sentinel, is already two years behind schedule and 37% more expensive than originally promised.

    • The nuclear-powered aircraft carrier USS John C. Stennis is in port for a scheduled overhaul and refueling stint—work that normally takes four years to complete—yet the carrier now won’t be ready for at least another year, marking over five years out of service.

  • In June 2024, the Government Accountability Office (GAO) described the Pentagon as “alarmingly slow” in fielding weapons for every Service. Yet the previous administration did nothing effective to address the problem.

  • With adversaries like China and Russia rapidly advancing their own military technologies, it is essential to prioritize speed, flexibility, and innovation to deliver cutting-edge capabilities to our Armed Forces.

REBUILDING OUR DEPLETED MILITARY: By signing this Executive Order, President Trump is demonstrating his serious commitment to ensuring our military remains the world’s most powerful.

  • President Trump campaigned on the promise to rebuild America’s depleted military, emphasizing the need to restore its strength and readiness after years of neglect.
  • President Trump: “[A]s I work to again rebuild America’s military strength and deterrence that Joe Biden so foolishly squandered, we need to take a long, hard look at defense procurement and our defense industrial base, because it’s been withered down to nothing. Given all the money we spend on the Pentagon, it’s unacceptable that we would ever run out of ammunition or be unable to quickly produce the weapons needed.”