President Trump’s pick to be the second-highest official at the Defense Department told lawmakers that his background in private sector financial markets makes him the right candidate to help manage the Pentagon’s massive budget and slash the cost overruns and delays that plague the military.

Stephen A. Feinberg, the billionaire founder of Cerebus Capital Management, testified Tuesday before the Senate Armed Services Committee after Mr. Trump nominated him as deputy defense secretary.

The Pentagon failed to pass its annual audit in November 2024, meaning the nation’s military leaders couldn’t account for how its $824 billion budget was being used. It was the 7th time in a row that the Defense Department failed an audit since 2018, when it became a requirement.

The Pentagon lacks adequate financial accountability practices that are needed to help the military meet its current and future force requirements, Mr. Feinberg said. 

“There is a great opportunity to improve our cost structure, our efficiency, our operations [and] to really save a lot of money that could be plowed into the mission,” he said. “This is in my wheelhouse … I spent a career helping organizations improve.”

Mr. Feinberg warned that Beijing is focused on surpassing the military capability of the U.S., pointing to shortages in several areas including shipbuilding, nuclear modernization and counter-drone technologies.

“China is incredibly determined, they feel a great sense of urgency, and they’ll be fully dedicated to becoming the strongest nation in the world and having dominance over the United States,” he said. “We really need to plug these shortages, focus on our priorities, get rid of legacy programs [and] be very disciplined.”

Failing to do so will put the nation’s security at risk, Mr. Feinberg said.

• Mike Glenn can be reached at mglenn@washingtontimes.com.