You’ve probably seen the headlines. Pete Hegseth, the former Fox News host turned Pentagon chief, is basically everywhere in the news right now. It is January 2026, and the building we used to call the Department of Defense is officially the Department of War (DOW).
Honestly, the name change alone was enough to set the internet on fire back in September. But that’s just the tip of the iceberg.
Hegseth’s tenure has been anything but quiet. Whether he’s at SpaceX’s Starbase with Elon Musk or filing letters of censure against sitting U.S. Senators, the guy is moving at a speed that makes traditional DC bureaucrats dizzy. Some call it "innovation." Others call it "dangerous recklessness."
Let’s look at what’s really going on inside the Pentagon—or the "War Department"—and why people are so polarized about it.
The Mark Kelly Censure: A Legal Minefield
Last week, things got personal. Senator Mark Kelly, a retired Navy captain and astronaut, filed a lawsuit in the U.S. District Court for the District of Columbia against Secretary Hegseth. Why? Because Hegseth is trying to take away Kelly’s retired rank and pension.
It started with a video.
In late 2025, Kelly and a few other veterans-turned-lawmakers put out a clip reminding troops they have a legal duty to refuse "unlawful orders." The Trump administration didn't take that well. They called it sedition.
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Hegseth didn't just tweet about it. He issued a Secretarial Letter of Censure to Kelly. He also started a "retirement-grade review" to see if Kelly served "satisfactorily" way back when. If Hegseth wins this legal fight, Kelly could be demoted on the retired list and lose a chunk of his pay.
It’s a huge deal because it asks a scary question: Can the executive branch punish a civilian senator for something they said today by reaching back into their military records from ten years ago?
"Accelerate Like Hell": The New Tech Reality
While the lawyers fight in DC, Hegseth has been spending a lot of time in Texas. Specifically, he was recently at Starbase with Elon Musk to announce a massive overhaul of how the military buys tech.
"We are done running a peacetime science fair," Hegseth said. He's not kidding.
The new strategy is basically to act like a Silicon Valley startup. They’ve launched something called GenAI.mil, which gives the whole department access to AI models like Google Gemini and xAI’s Grok.
The 7 "Pace-Setting Projects" (PSPs)
Hegseth’s team, including Under Secretary Emil Michael, is pushing seven specific projects meant to "match the velocity" of the private sector:
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- Swarm Forge: Scaling up AI-enabled drone swarms.
- Agent Network: Using AI "agents" for battle management.
- Ender’s Foundry: AI-enabled simulations (yes, like the book).
- Open Arsenal: Speeding up weapons development using intelligence data.
- Project Grant: Shifting deterrence from static bases to "dynamic pressure."
- GenAI.mil: The department-wide AI platform.
- Enterprise Agents: AI to handle the boring office paperwork so humans can focus on "warfighting."
It sounds like sci-fi, but they’ve already put $1 billion into securing the solid rocket motor supply chain this month alone. They want to triple PAC-3 missile production by 2026. Basically, the goal is to make things, move things, and break things—fast.
The War on "Woke" and the Stars and Stripes Drama
You can’t talk about Hegseth without talking about the culture war.
Just a few days ago, Hegseth’s spokesman, Sean Parnell, announced on X that the Pentagon is "refocusing" Stars and Stripes. That’s the famous military newspaper that’s been around since the Civil War.
The plan?
- Cut out "woke distractions."
- Stop using Associated Press (AP) and Reuters.
- Have 50% of the content generated by the Department of War itself.
A lot of veteran reporters have already quit. They say it’s turning a news outlet into a PR machine. Hegseth argues it’s about returning the paper to its "original mission" of serving the warfighter, not the DC elite.
The Scandals: Boat Strikes and Signal Leaks
It hasn't all been tech summits and policy wins. Hegseth is currently facing a massive crisis over "boat strikes" in the Caribbean.
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There are allegations—and a pretty blistering Inspector General report—suggesting that a September 2025 operation against a suspected drug boat resulted in a "double-tap" attack. Basically, hitting the boat, and then hitting the survivors in the water.
On top of that, there’s a recurring issue with Signal.
Hegseth reportedly prefers using the encrypted app Signal for communication. The Inspector General says he’s mishandling classified intelligence and violating Pentagon records policies. Security experts are worried that these leaks make him a prime target for foreign espionage.
What This Means for You
If you're a contractor, a service member, or just someone trying to keep up, the landscape is changing daily.
First, the Small Business Administration’s 8(a) program is under a "comprehensive review" by the DOW. If you have a contract under that program, expect some scrutiny. Hegseth is looking to cut anything he deems as social engineering in favor of raw lethality.
Second, the "Arsenal of Freedom" tour is coming. Hegseth is planning to hit the road to "rally the nation" and promote this new, aggressive posture.
Actionable Insights for 2026
- Watch the Kelly Case: The outcome of the Mark Kelly lawsuit will define the First Amendment rights of every retired service member in America. If Hegseth wins, "retirement" doesn't mean you're out from under the Pentagon's thumb.
- Pivot to AI: If you work in defense tech, the "peacetime science fair" is over. The DOW is looking for "commercial first" acquisitions. If it’s not AI-driven or fast-to-field, it’s probably getting cut.
- Stay Skeptical of Media: With Stars and Stripes losing its independence and the DOW producing its own content, you’ll need to cross-reference military news more than ever.
- Brace for Rebranding: The shift from "Defense" to "War" isn't just a sign on the door. It’s a shift in mindset toward active "dynamic pressure" rather than passive deterrence.
The "War Department" under Pete Hegseth is a massive experiment in whether a 21st-century military can be run like a high-growth tech company. Whether it's a brilliant move to stay ahead of China or a reckless path toward legal and ethical disaster is the question that's going to dominate the rest of 2026.