The Pentagon failed its annual audit for the 8th year, with $4.7 trillion in liabilities, 26 “material weaknesses,” and $18.9 billion in misstatements—but aims to pass by 2028, officials say.
By yourNEWS Media Newsroom
WASHINGTON — The Pentagon failed its annual financial audit for the eighth consecutive year, according to a report by The Epoch Times, marking another setback in the Department of Defense’s (DoD) long-standing accounting struggles.
A Decade of Failed Audits
Since Congress mandated annual audits in 2018, the DoD has never passed. The 2025 audit, finalized December 18, uncovered:
- $4.65 trillion in assets.
- $4.72 trillion in liabilities.
- 26 “material weaknesses” and 2 significant deficiencies.
- 10 adverse opinions (inaccurate financial reporting) out of 28 subaudits.
Auditors also issued “disclaimers of opinion”—meaning they could not verify the accuracy of certain balance sheets.
Key Findings
- $18.9 billion in misstatements in programs supporting allied military capabilities.
- Errors in the F-35 Joint Strike Fighter Program (critical for U.S. and allied forces).
Pentagon’s Response
Pentagon Comptroller Jules Hurst acknowledged the failures but vowed improvement: “The Department of War is committed to resolving its critical issues and achieving an unmodified audit opinion by 2028.”
Secretary of War Pete Hegseth highlighted “significant progress”: “This year’s audit revealed remediations in key areas, reflecting improvements in financial management.”
What’s Next?
The Pentagon’s 2028 compliance goal remains uncertain, as decades of financial mismanagement persist. Critics argue the DoD’s inability to pass an audit raises serious accountability concerns.
“Eight years of failures demand real reform—not just promises,” a Congressional oversight committee member said.
The 2026 audit will be closely watched as the DoD races to meet its 2028 deadline.
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