Democrats are voicing sharp criticism after reports revealed that the Navy and Air Force are preparing to scrap nearly completed software projects valued at more than $800 million.
“The Pentagon has yet to show that it had a good reason for halting these contracts in the last inning and scrapping work American tax dollars have already paid for,” Senator Tim Kaine said in a statement. “If it can’t show its homework, then this announcement—just days after Palantir’s CEO spoke at Mike Johnson’s Wyoming donor retreat—reeks of corruption.”
Palantir CEO Alex Karp was reported by Punchbowl earlier this month to have addressed House Speaker Mike Johnson’s annual donor retreat in Jackson Hole, Wyoming.
The Pentagon and Air Force did not immediately respond to requests for comment, while the Navy declined to provide a statement.
Trump officials have defended the cancellations, arguing they are part of broader efforts to streamline contracting and eliminate government waste. The Department of Government Efficiency (DOGE), an agency Trump created for that purpose, claims to have canceled more than $14 billion in Defense Department contracts.
Still, critics point out contradictions. Democrats noted that Trump’s actions—including firing the Pentagon’s inspector general and issuing an executive order prioritizing speed and risk-taking in defense acquisitions—have undermined DOGE’s oversight role.
“If you’re serious about cracking down on waste, fraud, and abuse, the last thing you’d do is cancel $800 million in projects that are nearly ready to roll out just to turn around and steer the same work to corporations of your choosing,” said Representative Maggie Goodlander, a Navy Reserve veteran. “This maneuver is an insult to taxpayers and servicemembers across America.”
Representative Salud Carbajal echoed those concerns, calling the decision part of a broader pattern of mismanagement. “This administration has repeatedly shown a blatant disregard for the responsible use of taxpayer dollars,” he said. “From lavish military parades to unnecessary troop deployments in Los Angeles, President Trump has used our armed forces to inflate his ego and enrich his allies.”
The path forward for the projects remains unclear, with lawmakers demanding transparency and accountability from the Pentagon.
