Veteran-Owned Small Businesses Reeling After DOGE-Led Contract Cuts

Summary: Rapid federal contract cancellations led by the administration’s efficiency effort known publicly as DOGE have left hundreds of veteran-owned companies scrambling, costing contracts that supported health services, translation, and other veteran-focused work.

Hundreds of veteran-owned firms hit by abrupt cancellations

Ten months into the Trump administration, a wave of contract terminations tied to the White House efficiency effort known as DOGE has upended the finances of many veteran-owned businesses that relied on federal contracts.

At least 1,251 contracts linked to veteran-owned firms were canceled, affecting roughly 550 companies, according to public contract lists and federal procurement records. Two-thirds of the contracts canceled at the Department of Veterans Affairs (VA) this year were with veteran-owned businesses, including work that helped register veterans with cancer and provided other health-support services.

Human cost: owners share the fallout

Veterans who built businesses serving the federal government describe severe financial strain. Jeremy Casanave, a nine-year Navy veteran, said his translation company collapsed after losing more than a dozen federal contracts; he and his wife took equity out of their home and started a dog-walking business to make ends meet. A 10-year Army veteran who previously worked at the VA said their company was forced to furlough half its staff after multiple contract cancellations. Another five-year Army veteran said they considered selling their car to meet payroll.

“They don't care about veterans, they just care about veteran votes,” Casanave said of the administration’s approach, adding that the sudden cuts left his business and others exposed.

Administration rationale and pushback

The White House has defended DOGE’s actions as efforts to eliminate waste, fraud and abuse and to redirect savings toward veteran care. DOGE’s public tally claims roughly $3 billion saved from canceled contracts as of Oct. 4, along with an additional $39 million from cut grants and $177 million tied to other VA contract changes. Critics and outside analysts have questioned the accounting method and noted that these figures do not necessarily translate into immediate taxpayer savings.

VA officials say the department reviewed tens of thousands of contracts and eliminated duplicative agreements, redirecting some of the savings into veteran care and infrastructure — including about $800 million in improvements to VA health facilities. Still, lawmakers from both parties have voiced concern about the impact on veteran-owned businesses and the communities they support.

Why veteran-owned firms were especially exposed

Federal procurement policy has long set targets for awarding contracts to veteran-owned small businesses: the Small Business Administration (SBA) has a 5 percent goal for service-disabled-veteran-owned small businesses (worth as much as about $34 billion in the fiscal year), and the VA had a 17 percent target in fiscal 2024. Those priorities made veteran-owned firms a visible target during DOGE’s reviews and cuts.

Officials also acknowledge the public contract lists undercount downstream impacts — particularly subcontracts — that many small businesses depend on. Several owners said they lost subcontract work that is not reflected in public tallies.

Administrative errors and longer-term concerns

Some contractors say terminations resulted from classification or administrative errors. Peter Whalen, CEO of Best Practices Group, said a $217,000 award for cancer registry services was labeled as a consulting contract and canceled; the VA says the work was consolidated into a larger agreement and that cancer registration services were maintained.

Small-business owners also reported far fewer new solicitations from the VA since these actions began. With the federal fiscal year turnover, many fear it could be months before new opportunities appear — creating a cash-flow gap that can be existential for micro and small firms.

Voices from Capitol Hill

Some Republican lawmakers — including Rep. Jen Kiggans (R-Va.), a former Navy pilot — have urged reexamination of the cuts affecting veteran-owned companies. Democrats and veteran advocates have also warned the approach risks eroding trust among contractors and the communities that rely on them.

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Methodology: This report combines public listings of contract cancellations from DOGE’s publicly posted records (last updated Oct. 4) with federal procurement data that records self-reported business designations such as veteran-owned or service-disabled veteran-owned. Archived versions of public contract lists were used where items have since been redacted.