The Trump administration has directed the Pentagon to implement sweeping budget cuts, aiming to reduce defense spending significantly. Defense Secretary and key officials are pushing for a $50 billion reduction this year to reallocate funds towards military priorities favored by the former president. High-profile defense companies such as Palantir have seen substantial drops in stock prices in response to fears surrounding these budget cuts. Lawmakers and military leaders are actively evaluating which areas of the defense budget can be trimmed, with discussions involving potential reductions of up to $290 billion over the next five years. The White House is considering annual cuts of 8% to boost Trump’s defense initiatives while requesting a detailed plan from the Pentagon for these anticipated changes.