Pentagon reviews 8A program contracts amid fraud concerns
Hegseth said the audit will start immediately, as part of the Trump administration’s efforts to eliminate what he described as “corruptive, unconstitutional, non-merit-based” diversity, equity, and inclusion (DEI) practices in the military.
“We’re taking a sledgehammer to the oldest DEI program in the federal government, a program few people outside of Washington have ever heard of,” he stated.
The 8A program, established in 1978 under the Small Business Act to support businesses run by “socially and economically disadvantaged” individuals, has grown over time, Hegseth claimed, into a “breeding ground for fraud.”
“In 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,” he added, referring to firms that profit from lucrative government contracts in Washington, D.C.
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