The Pentagon is preparing to revamp its weapons-buying system with a new initiative that would let it invest in defense firms and offer loans, grants, and other financial incentives to speed up development and attract more bidders, Bloomberg News reported Tuesday, citing a draft memo.
The proposal aims to fix the military’s slow and costly procurement process, long criticized for producing weapons that are over budget and outdated before delivery. The plan would also create a new Economic Defense Unit tasked with designing modern contracting tools, including purchase commitments and investment programs.
Defense Secretary Pete Hegseth is expected to outline the overhaul, renaming the current Defense Acquisition System as the War-fighting Acquisition System, in an upcoming speech titled “The Arsenal of Freedom.” Each service branch would have 60 days to propose implementation plans and six months to issue new contracting rules encouraging faster delivery.
Analysts warned that the aggressive timelines may be difficult to meet, Bloomberg News reported. The proposal also faces criticism for suggesting looser testing and compliance rules, which some lawmakers say could weaken oversight. Still, it represents one of the Pentagon’s most sweeping efforts in decades to accelerate weapons development and open contracts to a wider range of companies.