US suspends new defense contracts — what is the reason?

U.S. Secretary of Defense Pete Hagel has suspended all new defense contracts and requests for defense project openings. The pause could last ten days or even several months.

Bloomberg reports this, citing two officials who have seen an official letter from the Pentagon chief.

Suspension of defense contracts in the United States

Newly appointed Pentagon chief Pete Gates has suspended new defense contracts and requests for new programs as one of his first orders in office. Sources said the pause could last ten days or even several months.

"The suspension is partly related to a review of the diversity, equity, and inclusion provisions in contracts. However, it is also a reassessment that the new Donald Trump administration may undertake to set priorities and free up funding," material reads.

At the same time, it is known that this review will not affect the fulfillment of contracts that have already been awarded.

Army spokeswoman, Ellen Lovett, said that as is traditional, the army is now reviewing existing solicitations and contracts to ensure that U.S. programs are consistent with the new administration's policies and directives.

"We remain committed to the principles of transparency and responsible stewardship of taxpayer funds," Lovett stressed.

As a reminder, it is known that Elon Musk will head a new department helping to reform the public administration system and will get an office near the White House.

We also wrote that the new U.S. Secretary of State, Marco Rubio, the administration of U.S. President Donald Trump aims to end the war in Ukraine in such a way that hostilities do not resume in a few years.