The real winners of Trump's war

10h

U.S. President Donald Trump gestures at the McDonald's Impact Summit at the Westin Hotel in Washington, D.C., U.S., November 17, 2025. REUTERS Evelyn Hockstein

Today I want to talk about who’s getting the most out of Trump’s war.

That war is costing the U.S. about $1 billion a day. The Pentagon’s budget is around $1 trillion this year, and Trump wants an additional $500 billion. Because of the war, the cost of oil has topped $100 a barrel, and the price of a gallon of gas at the U.S. pump now averages $3.67 — up from $2.92 before the war.

The strain on the federal budget has given Republicans an excuse to demand further cuts in federal assistance to people in need. JD Vance recently kicked off a “war on waste and fraud” by announcing suspension of Medicaid payments to Minnesota, charging thatthe program is rife with fraud perpetrated by “bad actors in our society … [who] decide to make themselves rich.”

But if you want to find real waste and fraud, look no further than Pete Hegseth’s “Department of War.”

A new analysis by government watchdog Open the Books found that as the 2025 fiscal year was ending, Hegseth’s Pentagon spent: nearly $100,000 on a Steinway grand piano to outfit the home of the Air Force chief of staff; $60,719 on premium office furniture, including at least one luxurious $1,844 Aeron Chair; $12,540 for three-tiered fruit basket stands; $2 million on Alaskan king crab, $6.9 million on lobster tail, $15.1 million on ribeye steak, and $1 million on salmon; $124,000 for ice cream machines; and $26,000 for sushi preparation tables.

The Pentagon has failed every audit since it was legally required to start submitting them in 2018, and reports say it will continue to fail them at least through 2028.

The ballooning profits of military contractors are helped by their near monopoly on defense production. Since the 1990s, the number of prime contractors for the Defense Department has shrunk from 55 to five.

Keep following the money.

These giants have been spending more on enriching their investors than expanding production. Between 2020 and 2025, top military contractors devoted $110 billion to stock buybacks and dividends — more than double what they spent on capital expenditures — which boosted their stock values and the pay packages of their CEOs.

And who are their biggest investors and CEOs? Trump loyalists.

Larry Ellison’s Oracle provides Hegseth’s war machine with cloud infrastructure and enterprise software. (Reminder: Ellison is the second-richest person in America and a Trump loyalist on the verge of owning a media empire comprised of CBS, CNN, TikTok, Comedy Central, and HBO.)

Elon Musk’s SpaceX has secured billions in contracts for launching sensitive satellites and space surveillance. Musk’s xAI has received a Pentagon contract to develop advanced AI tools. (Reminder: Musk is the richest person in the world and spent a quarter of a billion dollars getting Trump reelected in 2024.)

Peter Thiel’s Palantir Technologies has landed multibillion-dollar defense contracts, including a $10 billion agreement with the U.S. Army to provide AI-driven data analytics and software to integrate AI, surveillance, and battlefield management systems. (Reminder: Thiel is a billionaire who contributed $1.25 million to Trump’s 2016 presidential campaign, including $1 million to a pro-Trump super PAC, and then $10 million to getting JD Vance elected to the U.S. Senate in 2022.)

Not to forget Big Oil, now enjoying windfall profits as global oil prices soar. (Recall Trump asking oil company executives for $1 billion for his 2024 campaign, in return for undisclosed favors.)

Among others benefitting from the turmoil is Jared Kushner, Trump’s son-in-law and one of the U.S. government’s chief negotiators in the Middle East, who’s busily raising at least $5 billion or more for his private-equity investment firm from governments in the Middle East, including Saudi Arabia’s Public Investment Fund.

Finally, there’s Trump’s on-again, off-again ally Vladimir Putin. In just two weeks of war, Russia has reaped an estimated $6.9 billion from the increase in oil prices and the easing of sanctions.

What to do? At the very least, Congress should:

Prohibit defense contractors from making campaign donations or lobbying Congress. Why should taxpayers subsidize these activities?

Tax windfall profits from Trump’s war (or from any war). America has had windfall profits taxes during wartime before. Given the size of current windfalls, we need it again.

Cut the defense budget. Start by cutting it 10 percent each year it fails audits. This is particularly important during the Trump-Hegseth era of defense bloat.

As long as Trump and his Republicans control Congress and the executive branch, these reforms don’t have a prayer. Still, Democrats should introduce them and push for them. Let Trump and his Republicans go on record voting against them.

Robert Reich is a professor of public policy at Berkeley and former secretary of labor. His writings can be found at https://robertreich.substack.com/.

From Your Site Articles