Pentagon fails financial audit for 8th year in a row
The US Department of Defense (DOD) has failed its financial audit for the eighth year in a row. It remains the only one of the government’s 24 major agencies never to pass such a review. Defense Secretary Pete Hegseth has now reaffirmed the department’s commitment to improving its financial accountability.
The latest audit exposed ongoing issues, including missing data on high-value military assets and persistent weaknesses in reporting. Despite these failures, officials claim progress is being made toward a clean audit by 2028.
The Pentagon’s 2025 financial statements revealed 26 material weaknesses and two significant deficiencies. Among the most serious problems was the inability to verify assets tied to the Joint Strike Fighter Program’s Global Spares Pool. Auditors found that the DOD could not provide reliable data on the existence, completeness, or value of these assets, leading to a material misstatement in its records.
The department’s financial scale complicates the process. Its latest report listed $4.65 trillion in assets and $4.7 trillion in liabilities, spread across all 50 states and over 40 countries. Such vast operations make accurate tracking difficult, yet officials admit the current system falls short of basic standards. Defense Secretary Pete Hegseth, in office since January 2025, acknowledged the failures but stressed ongoing efforts. He stated that the DOD remains dedicated to annual audits and is conducting a full review of its budget. Jules Hurst, the Pentagon’s chief financial officer, echoed this stance, writing that the goal is an unmodified audit opinion by 2028. The repeated failures follow years of scrutiny, including controversies under Hegseth’s leadership. Despite pledges of reform, the DOD’s inability to account for critical assets—particularly in high-profile programs like the Joint Strike Fighter—raises questions about oversight and financial management.
The Pentagon’s latest audit failure marks its eighth consecutive year without approval. Officials now face pressure to address 26 material weaknesses and improve asset tracking before the 2028 deadline. Without reliable financial data, the DOD’s long-term budgeting and accountability remain in doubt.
