Pentagon says it fails eighth audit, targets 2028 to pass

The Pentagon has failed its annual audit for the eighth consecutive year, highlighting ongoing financial accountability issues. The first audit began in 2018 and has revealed persistent system and accounting problems.

Secretary of Defense Pete Hegseth stated, "The Department cannot resolve decades of war, neglect of America's defense industrial base, and soaring national debt through unchecked spending." The Department of Defense holds $4.65 trillion in assets and $4.73 trillion in liabilities, with auditors citing 26 material weaknesses.

The department aims for an unmodified audit opinion by 2028. Despite some progress in resolving accounting issues, it remains the only Cabinet-level agency without a clean financial report.