Trump administration pledges overhaul of Pentagon acquisition system for defense startups

The Trump administration announced a major reform of the Pentagon's defense‑acquisition process to make it easier for emerging technology firms to win military contracts. At the Pennsylvania Defense and Innovation Summit, Defense Secretary Pete Hegseth said the administration is removing bureaucratic barriers that have long favored established contractors and hindered new entrants.

"Our bureaucracy was designed so that most of you could not even enter the defense sector," Hegseth told attendees, adding that the goal is to align procurement decisions with the speed of commercial markets. The reforms include faster decision‑making, reduced paperwork, and a shift toward competition, speed, and innovation.

Investors at the summit noted early effects, with billions of dollars earmarked for projects in AI, autonomous systems, robotics, advanced manufacturing and aerospace. A $10 billion investment package was also announced for shipbuilding, missile production and related technologies, aiming to strengthen the U.S. defense industrial base while integrating new tech firms.