By Ellen Brown / Original to ScheerPost.   August 26, 2025

The U.S. federal debt has now passed $37 trillion and is growing at the rate of $1 trillion every five months. Interest on the debt exceeds $1 trillion annually, second only to Social Security in the federal budget. The military outlay is also close to $1 trillion, consuming nearly half of the discretionary budget.

Under the Constitution, the military budget should not be paid at all, because the Pentagon has never passed an audit. Expenditures of public funds without a public accounting violate Article 1, Section 9, Clause 7of the Constitution, which provides:

“No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time. “

The Pentagon failed its seventh financial audit in 2024, with 63% of its $4.1 trillion in assets—approximately $2.58 trillion—untracked. From 1998 to 2015, it failed to account for $21 trillion in spending.

As concerning today as the financial burden is the wielding of secret power. Pres. Dwight Eisenhower warned in his 1961 farewell address, “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”

Pres. John F. Kennedy echoed that concern, warning in 1961 that “secret societies” and excessive secrecy are “repugnant in a free and open society,” threatening democracy by withholding truth from the public. He warned that excessive concealment, even for national security, undermines democracy by denying citizens the facts needed to hold power accountable. “No expenditure is questioned, no rumor is printed, no secret is revealed,” he said.  If untracked billions fund classified programs, citizens are left powerless, governed by a shadow entity answerable to no one.

Those concerns persist today. On Aug. 13, 2025, Joe Rogan interviewed U.S. Representative Anna Paulina Luna, who leads a House Oversight Committee focused on government transparency regarding various topics, including UAPs (Unidentified Anomalous Phenomena, formerly UFOs). Luna said the committee had been formed after she and two other congressmen were denied access at Eglin Air Force Base to information on UAPs provided by whistleblowers. The problem, she said, was that Congress was supposed to represent the public and be an investigative body for it, “and you have unelected people operating basically in secrecy. … I think this goes all the way back even to JFK, with how they basically have operated outside of the purview of Congress and basically… have gone rogue.….”

A Behemoth Without Oversight

The Department of Defense’s $885.7 billion budget for 2025, approved by the House of Representatives, dwarfs the military spending of China ($296 billion), Russia ($84 billion), and the next eight nations combined. Managing $4.1 trillion in assets—from aircraft carriers to secret drones—along with $4.3 trillion in liabilities (e.g. personnel costs and pensions), the federal government’s largest agency oversees a military empire spanning over 4,790 sites worldwide. Yet it operates with minimal oversight.

The Chief Financial Officers Act of 1990 mandated audits for all federal agencies, but the National Defense Authorization Act of 2018 delayed the Pentagon’s first department-wide audit to 2018 due to its unwieldy size, its decentralized systems, and its outdated software. The DOD has failed every audit since that time. In 2024, it could not account for its $824 billion FY 2024 budget, with 2,500 new audit issues identified. Of 24 reporting entities, only nine received clean opinions, while 15 received disclaimers due to insufficient data. In fact the Government Accountability Office (GAO) has flagged DoD financial management as high-risk for waste, fraud, and abuse ever since 1995.

As observed in a January 2019 article in Rolling Stone by Matt Taibbi, openly secret budgets were first legalized in 1949 with the passage of the Central Intelligence Agency Act, which exempted that newly created agency from public financial disclosure. The Act stated, “The sums made available to the Agency may be expended without regard to the provisions of law and regulations related to the expenditure of Government funds.”

The aim of the Chief Financial Officers Act of 1990 was to curb billions of dollars said to be lost each year through fraud, waste, abuse, and mismanagement of public budgets. Despite the mandated audits for all federal agencies, the DoD – the only major agency without a clean audit – has received $3.9 trillion in congressionally approved funding since 2018. “Every year that members of Congress vote to boost Pentagon spending with no strings attached,” observed federal budgeting expert Lindsay Kosgharian, “they choose to spend untold billions on weapons and war with no accountability.”

The Audit the Pentagon Act of 2023, backed by Sens. Bernie Sanders and Chuck Grassley, proposes docking 0.5–1% of budgets for audit failures, but the measure has not received a vote.

The Department of Government Efficiency (DOGE), launched with promises to strip waste, fraud, and abuse from federal agencies, has conspicuously sidestepped the Pentagon. A June 2025 article titled “Why DOGE Was Always Doomed: The Pentagon Problem,” points out that the DOGE mission was seriously hampered by the Pentagon’s exemption from auditing:

“In FY 2024, total discretionary spending was about $1.6 trillion. Of that, the Pentagon alone received $842 billion. In other words, it got more funding than all other departments combined. You read that right: one (very special) department received more than all the rest put together.”

Funds that are not accounted for divert resources from critical needs like troop readiness, healthcare, and infrastructure. Overbilling by contractors enriches corporations while taxpayers foot the bill. And the lack of transparency erodes public confidence, as Americans struggle with domestic priorities.

The Missing $21 Trillion: Fraud, Waste or Something Worse?

The Pentagon’s audit failures mask not just inefficiency and waste but pervasive fraud and corruption. Between 1998 and 2015, Inspector General reports show that the DoD could not account for $21 trillion in spending—65% of federal spending during that period. For perspective, the entire U.S. GDP in 2015 was $18.2 trillion. In 2023, the agency failed to document 63% of its $3.8 trillion in assets, up from 61% the prior year. A 2015 DoD report identifying $125 billion in administrative waste was suppressed to protect budget increases.

There is plenty of verified waste to support the case for mismanagement. Military contractors, who receive over half of the Pentagon’s budget, are a major culprit. The F-35 program, managed by Lockheed Martin, was reported in 2021 to be $165 billion over budget, with $220 billion in spare parts poorly tracked. A 2023 CBS News investigation found that contractors routinely overcharged by 40–50%, with some markups reaching 4,451%. A 2016 report in the Nation highlighted $640 for a toilet seat and $7,600 for a coffee pot.

It is no longer even necessary to cover up fraud and corruption by wildly inflated prices. In 2017, former HUD official Catherine Austin Fitts collaborated with Mark Skidmore, an economics professor at Michigan State University, to document the missing $21 trillion in unsupported journal voucher adjustments at the DoD and HUD. In a June 2025 article published in Fitts’ journal The Solari Report titled “Should We Care about Secrecy in Financial Reporting?,” Dr. Skidmore discussed how the government responded to the publication of his research with Fitts. Its response was to immediately eliminate the paper trail leading to its covert financial operations. In particular, “Pentagon officials turned to the Federal Accounting Standards Advisory Board (FASAB) for advice. Several months later, FASAB posted a new document (FASAB 56), which recommended that the government be allowed to misstate and move funds to conceal expenditures if it is deemed necessary to protect national security interests.”

Fitts remarked, “The White House and Congress just opened a pipeline into the back of the US Treasury, and announced to every private army, mercenary and thug in the world that we are open for business.”

Speculation Run Rampant.

In a widely-viewed interview by Tucker Carlson on April 28, 2025, Fitts expressed her belief that the missing trillions had been funneled into classified projects involving advanced technologies, including massive underground bunkers to protect elites from a “near-extinction event;” and that they were using advanced energy systems and hidden transit networks possibly linked to extraterrestrial tech. She discussed “interdimensional intelligence” and a secret space program linked to a “breakaway civilization.” The latter term was coined by UFO researcher Richard Dolan and is defined by Google as “a theoretical, hidden society that operates outside of mainstream civilization with advanced technology, often linked to UFO phenomena and secret space programs.”

In a Danny Jones interview in May 2025, Fitts alluded to Deep Underground Military Bases (“DUMBs”), perhaps used for “advanced technology or off-world operations.” Existence of these bases was confirmed two decades earlier by whistleblower Philip Schneider, a U.S. government geologist and engineer involved in their construction. In his last presentation in 1995, Schneider said there were 131 of these cities connected underground by mag-lev rail, built at a cost of $17-26 billion each. According to his biographer, Schneider was assassinated in 1996 by a U.S. intelligence agency for disclosing the government cover-up of UFOs and aliens.

Too over the top? Perhaps, but the Pentagon is so secretive that the public is left to speculate. Are we dealing with a scenario like that in such Hollywood movies as the 1997 film Men in Black, in which hidden forces—human or alien—control our fate?

The Pentagon’s All-domain Anomaly Resolution Office (AARO) contends that no verifiable evidence supports extraterrestrial activity. But other prominent figures support the UFO/UAP narrative. In 2017, the New York Times exposed the Advanced Aerospace Threat Identification Program (AATIP), said to be a $22 million DoD initiative run by Luis Elizondo investigating UAPs from 2007–2012.

According to BBC News, Haim Eshed, former head of Israel’s space security program, claimed in a 2020 interview with the Yediot Aharonot newspaper that the U.S. government has an “agreement” with a “Galactic Federation” of extraterrestrials. He alleged aliens have been in contact with the U.S. and Israel, with secret underground bases where they collaborate on experiments. Eshed claimed the United States was on the verge of disclosing this under President Trump but withheld it to avoid “mass hysteria.” The claims were unverified but provocative.

In recent years, Congress has increased its focus on UAPs, with high-profile hearings in 2022, 2023, and 2024. In 2023, whistleblower David Grusch, a former intelligence officer, testified that the U.S. possesses “non-human origin” craft and “dead pilots,” based on classified briefings. On November 13, 2024, the House Oversight Committee’s hearing, “Unidentified Anomalous Phenomena: Exposing the Truth,” featured testimony from Luis Elizondo, retired Navy Rear Admiral Tim Gallaudet, journalist Michael Shellenberger, and former NASA official Michael Gold, who claimed the U.S. possesses UAP technologies and has harmed personnel in secret retrieval programs. Shellenberger alleged that a covert “Immaculate Constellation” program hides UAP data from Congress.

Some lawmakers, including Rep. Luna and Rep. Tim Burchett, continue to criticize Pentagon secrecy and to push for transparency. In May 2024, Burchett introduced the UAP Transparency Act, requiring the declassification of all UAP-related documents within 270 days. He stated:

“This bill isn’t all about finding little green men or flying saucers, it’s about forcing the Pentagon and federal agencies to be transparent with the American people. I’m sick of hearing bureaucrats telling me these things don’t exist while we’ve spent millions of taxpayer dollars on studying them for decades. “

Secrecy Undermines Democracy.

With $21 trillion unaccounted for historically, $165 billion in F-35 overruns, and $125 billion in buried waste, the DoD’s financial mismanagement needs urgent reform. Congress is primarily responsible for overseeing the DoD budget, exercising its constitutional “power of the purse” under Article 1 of the U.S. Constitution. So why isn’t it enforcing this mandate?

The chief excuse given is the need for secrecy for security reasons, but a congressional committee could be given access to the Pentagon’s financial data in closed session in order to exercise public oversight and enforce accountability. Other factors are obviously at play, including political influence, lobbying, campaign contributions from the defense sector, and a lack of penalties for noncompliance.

To restore accountability, Congress needs to enforce the Audit the Pentagon Act, modernize DoD systems, and investigate contractors profiting from lax oversight. UAP transparency is also critical, whether to debunk myths or uncover truths.

As taxpayers footing the bill, we are entitled to know not only where our money is being spent but who is really in charge of our government. The Pentagon’s secrecy and lack of accountability could be shielding anything from contractor fraud to UAP programs and alien alliances. If there is information so secret that even our elected representatives don’t have access to it, who does have access? Is there a secret government above the government we know? Without fiscal transparency and accountability, we can no longer call ourselves a democracy, as JFK warned.

First published on ScheerPost.com.

 

 

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Why Military Spending Remains Untouchable

BY ANDREW BACEVICH
07/01/2025

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In defense circles, “cutting” the Pentagon budget has once again become a topic of conversation.  Americans should not confuse that talk with reality.  Any cuts exacted will at most reduce the rate of growth.  The essential facts remain: U.S. military outlays today equal that of every other nation on the planet combined, a situation without precedent in modern history.

The Pentagon presently spends more in constant dollars than it did at any time during the Cold War — this despite the absence of anything remotely approximating what national security experts like to call a “peer competitor.”  Evil Empire?  It exists only in the fevered imaginations of those who quiver at the prospect of China adding a rust-bucket Russian aircraft carrier to its fleet or who take seriously the ravings of radical Islamists promising from deep inside their caves to unite the Umma in a new caliphate.

What are Americans getting for their money?  Sadly, not much.  Despite extraordinary expenditures (not to mention exertions and sacrifices by U.S. forces), the return on investment is, to be generous, unimpressive.  The chief lesson to emerge from the battlefields of the post-9/11 era is this: the Pentagon possesses next to no ability to translate “military supremacy” into meaningful victory.

Washington knows how to start wars and how to prolong them, but is clueless when it comes to ending them.  Iraq, the latest addition to the roster of America’s forgotten wars, stands as exhibit A.  Each bomb that blows up in Baghdad or some other Iraqi city, splattering blood all over the streets, testifies to the manifest absurdity of judging “the surge” as the epic feat of arms celebrated by the Petraeus lobby.

The problems are strategic as well as operational.  Old Cold War-era expectations that projecting U.S. power will enhance American clout and standing no longer apply, especially in the Islamic world.  There, American military activities are instead fostering instability and inciting anti-Americanism.  For Exhibit B, see the deepening morass that Washington refers to as AfPak or the Afghanistan-Pakistan theater of operations.

Add to that the mountain of evidence showing that Pentagon, Inc. is a miserably managed enterprise: hide-bound, bloated, slow-moving, and prone to wasting resources on a prodigious scale — nowhere more so than in weapons procurement and the outsourcing of previously military functions to “contractors.”  When it comes to national security, effectiveness (what works) should rightly take precedence over efficiency (at what cost?) as the overriding measure of merit.  Yet beyond a certain level, inefficiency undermines effectiveness, with the Pentagon stubbornly and habitually exceeding that level.  By comparison, Detroit’s much-maligned Big Three offer models of well-run enterprises.

Impregnable Defenses

All of this takes place against the backdrop of mounting problems at home: stubbornly high unemployment, trillion-dollar federal deficits, massive and mounting debt, and domestic needs like education, infrastructure, and employment crying out for attention.

Yet the defense budget — a misnomer since for Pentagon, Inc. defense per se figures as an afterthought — remains a sacred cow.  Why is that?

The answer lies first in understanding the defenses arrayed around that cow to ensure that it remains untouched and untouchable.  Exemplifying what the military likes to call a “defense in depth,” that protective shield consists of four distinct but mutually supporting layers.

Institutional Self-Interest: Victory in World War II produced not peace, but an atmosphere of permanent national security crisis.  As never before in U.S. history, threats to the nation’s existence seemed omnipresent, an attitude first born in the late 1940s that still persists today.  In Washington, fear — partly genuine, partly contrived — triggered a powerful response.

One result was the emergence of the national security state, an array of institutions that depended on (and therefore strove to perpetuate) this atmosphere of crisis to justify their existence, status, prerogatives, and budgetary claims.  In addition, a permanent arms industry arose, which soon became a major source of jobs and corporate profits.  Politicians of both parties were quick to identify the advantages of aligning with this “military-industrial complex,” as President Eisenhower described it.

Allied with (and feeding off of) this vast apparatus that transformed tax dollars into appropriations, corporate profits, campaign contributions, and votes was an intellectual axis of sorts  — government-supported laboratories, university research institutes, publications, think tanks, and lobbying firms (many staffed by former or would-be senior officials) — devoted to identifying (or conjuring up) ostensible national security challenges and alarms, always assumed to be serious and getting worse, and then devising responses to them.

The upshot: within Washington, the voices carrying weight in any national security “debate” all share a predisposition for sustaining very high levels of military spending for reasons having increasingly little to do with the well-being of the country.

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Strategic Inertia: In a 1948 State Department document, diplomat George F. Kennan offered this observation: “We have about 50 percent of the world’s wealth, but only 6.3 percent of its population.”  The challenge facing American policymakers, he continued, was “to devise a pattern of relationships that will permit us to maintain this disparity.”  Here we have a description of American purposes that is far more candid than all of the rhetoric about promoting freedom and democracy, seeking world peace, or exercising global leadership.

The end of World War II found the United States in a spectacularly privileged position.  Not for nothing do Americans remember the immediate postwar era as a Golden Age of middle-class prosperity.  Policymakers since Kennan’s time have sought to preserve that globally privileged position.  The effort has been a largely futile one.

By 1950 at the latest, those policymakers (with Kennan by then a notable dissenter) had concluded that the possession and deployment of military power held the key to preserving America’s exalted status.  The presence of U.S. forces abroad and a demonstrated willingness to intervene, whether overtly or covertly, just about anywhere on the planet would promote stability, ensure U.S. access to markets and resources, and generally serve to enhance the country’s influence in the eyes of friend and foe alike — this was the idea, at least.

In postwar Europe and postwar Japan, this formula achieved considerable success.  Elsewhere — notably in Korea, Vietnam, Latin America, and (especially after 1980) in the so-called Greater Middle East — it either produced mixed results or failed catastrophically.  Certainly, the events of the post-9/11 era provide little reason to believe that this presence/power-projection paradigm will provide an antidote to the threat posed by violent anti-Western jihadism.  If anything, adherence to it is exacerbating the problem by creating ever greater anti-American animus.

One might think that the manifest shortcomings of the presence/power-projection approach — trillions expended in Iraq for what? — might stimulate present-day Washington to pose some first-order questions about basic U.S. national security strategy.  A certain amount of introspection would seem to be called for.  Could, for example, the effort to sustain what remains of America’s privileged status benefit from another approach?

Yet there are few indications that our political leaders, the senior-most echelons of the officer corps, or those who shape opinion outside of government are capable of seriously entertaining any such debate.  Whether through ignorance, arrogance, or a lack of imagination, the pre-existing strategic paradigm stubbornly persists; so, too, as if by default do the high levels of military spending that the strategy entails.

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Cultural Dissonance: The rise of the Tea Party movement should disabuse any American of the thought that the cleavages produced by the “culture wars” have healed.  The cultural upheaval touched off by the 1960s and centered on Vietnam remains unfinished business in this country.

Among other things, the sixties destroyed an American consensus, forged during World War II, about the meaning of patriotism.  During the so-called Good War, love of country implied, even required, deference to the state, shown most clearly in the willingness of individuals to accept the government’s authority to mandate military service.  GI’s, the vast majority of them draftees, were the embodiment of American patriotism, risking life and limb to defend the country.

The GI of World War II had been an American Everyman.  Those soldiers both represented and reflected the values of the nation from which they came (a perception affirmed by the ironic fact that the military adhered to prevailing standards of racial segregation).  It was “our army” because that army was “us.”

With Vietnam, things became more complicated.  The war’s supporters argued that the World War II tradition still applied: patriotism required deference to the commands of the state.  Opponents of the war, especially those facing the prospect of conscription, insisted otherwise.  They revived the distinction, formulated a generation earlier by the radical journalist Randolph Bourne, that distinguished between the country and the state.  Real patriots, the ones who most truly loved their country, were those who opposed state policies they regarded as misguided, illegal, or immoral.

In many respects, the soldiers who fought the Vietnam War found themselves caught uncomfortably in the center of this dispute.  Was the soldier who died in Vietnam a martyr, a tragic figure, or a sap?  Who deserved greater admiration:  the soldier who fought bravely and uncomplainingly or the one who served and then turned against the war?  Or was the war resister — the one who never served at all — the real hero?

War’s end left these matters disconcertingly unresolved.  President Richard Nixon’s 1971 decision to kill the draft in favor of an All-Volunteer Force, predicated on the notion that the country might be better served with a military that was no longer “us,” only complicated things further.  So, too, did the trends in American politics where bona fide war heroes (George H.W. Bush, Bob Dole, John Kerry, and John McCain) routinely lost to opponents whose military credentials were non-existent or exceedingly slight (Bill Clinton, George W. Bush, and Barack Obama), yet who demonstrated once in office a remarkable propensity for expending American blood (none belonging to members of their own families) in places like Somalia, Iraq, and Afghanistan.  It was all more than a little unseemly.

Patriotism, once a simple concept, had become both confusing and contentious.  What obligations, if any, did patriotism impose?  And if the answer was none — the option Americans seemed increasingly to prefer — then was patriotism itself still a viable proposition?

Wanting to answer that question in the affirmative — to distract attention from the fact that patriotism had become little more than an excuse for fireworks displays and taking the occasional day off from work — people and politicians alike found a way to do so by exalting those Americans actually choosing to serve in uniform.  The thinking went this way: soldiers offer living proof that America is a place still worth dying for, that patriotism (at least in some quarters) remains alive and well; by common consent, therefore, soldiers are the nation’s “best,” committed to “something bigger than self” in a land otherwise increasingly absorbed in pursuing a material and narcissistic definition of self-fulfillment.

In effect, soldiers offer much-needed assurance that old-fashioned values still survive, even if confined to a small and unrepresentative segment of American society.  Rather than Everyman, today’s warrior has ascended to the status of icon, deemed morally superior to the nation for which he or she fights, the repository of virtues that prop up, however precariously, the nation’s increasingly sketchy claim to singularity.

Politically, therefore, “supporting the troops” has become a categorical imperative across the political spectrum.  In theory, such support might find expression in a determination to protect those troops from abuse, and so translate into wariness about committing soldiers to unnecessary or unnecessarily costly wars.  In practice, however, “supporting the troops” has found expression in an insistence upon providing the Pentagon with open-ended drawing rights on the nation’s treasury, thereby creating massive barriers to any proposal to affect more than symbolic reductions in military spending.

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Misremembered History: The duopoly of American politics no longer allows for a principled anti-interventionist position.  Both parties are war parties.  They differ mainly in the rationale they devise to argue for interventionism.  The Republicans tout liberty; the Democrats emphasize human rights.  The results tend to be the same: a penchant for activism that sustains a never-ending demand for high levels of military outlays.

American politics once nourished a lively anti-interventionist tradition.  Leading proponents included luminaries such as George Washington and John Quincy Adams.  That tradition found its basis not in principled pacifism, a position that has never attracted widespread support in this country, but in pragmatic realism.  What happened to that realist tradition?  Simply put, World War II killed it — or at least discredited it.  In the intense and divisive debate that occurred in 1939-1941, the anti-interventionists lost, their cause thereafter tarred with the label “isolationism.”

The passage of time has transformed World War II from a massive tragedy into a morality tale, one that casts opponents of intervention as blackguards.  Whether explicitly or implicitly, the debate over how the United States should respond to some ostensible threat — Iraq in 2003, Iran today — replays the debate finally ended by the events of December 7, 1941.  To express skepticism about the necessity and prudence of using military power is to invite the charge of being an appeaser or an isolationist.  Few politicians or individuals aspiring to power will risk the consequences of being tagged with that label.

In this sense, American politics remains stuck in the 1930s — always discovering a new Hitler, always privileging Churchillian rhetoric — even though the circumstances in which we live today bear scant resemblance to that earlier time.  There was only one Hitler and he’s long dead.  As for Churchill, his achievements and legacy are far more mixed than his battalions of defenders are willing to acknowledge.  And if any one figure deserves particular credit for demolishing Hitler’s Reich and winning World War II, it’s Josef Stalin, a dictator as vile and murderous as Hitler himself.

Until Americans accept these facts, until they come to a more nuanced view of World War II that takes fully into account the political and moral implications of the U.S. alliance with the Soviet Union and the U.S. campaign of obliteration bombing directed against Germany and Japan, the mythic version of “the Good War” will continue to provide glib justifications for continuing to dodge that perennial question: How much is enough?

Like concentric security barriers arrayed around the Pentagon, these four factors — institutional self-interest, strategic inertia, cultural dissonance, and misremembered history — insulate the military budget from serious scrutiny.  For advocates of a militarized approach to policy, they provide invaluable assets, to be defended at all costs.

Copyright 2025 Andrew Bacevich

First published on TomDispatch.com.

 

 

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