The Pentagon failed its annual audit for the eighth consecutive year, underscoring long-standing financial-accountability problems that have drawn bipartisan criticism. The Department of Defense said it is targeting 2028 to secure a passing audit and is pursuing multi-year reforms to improve accounting and recordkeeping. Secretary Pete Hegseth warned that unchecked spending alone cannot resolve decades of war, industrial neglect, and rising national debt.
Pentagon Fails Eighth Straight Audit; Department Sets 2028 Goal to Pass
A general view of the Pentagon in Washington, D.C., U.S., October 15, 2025. REUTERS/Kevin Lamarque
WASHINGTON, Dec 19 (Reuters) — For the eighth consecutive year, the Pentagon failed its annual financial audit, the Department of Defense said on Friday. The result highlights persistent accountability problems that have drawn bipartisan criticism and have become a point of political debate.
The Department said it is targeting 2028 to achieve a passing audit, while continuing work to fix long-standing recordkeeping, accounting and financial-management weaknesses.
"The Department cannot resolve decades of war, neglect of America's defense industrial base, and soaring national debt through unchecked spending."
Secretary of Defense Pete Hegseth made the remark in a statement released alongside the audit results. The department’s announcement did not provide a precise timeline of specific fixes but reiterated a multi-year modernization and accounting-improvement effort aimed at meeting audit standards by the stated target.
Context and Reaction
Audit failures at the Defense Department have persisted for years amid complex financial systems, legacy accounting processes and challenges tied to wartime spending and procurement. Lawmakers from both parties have criticized the department’s inability to produce reliable financial statements, and the issue has surfaced in campaign discussions about fiscal stewardship and defense spending.
(Reporting by Mike Stone in Washington; Editing by Alex Richardson)
