Ahead of Confirmation Vote, Warren Calls On Hegseth to Address Conflicts of Interest, Commit to Public Integrity Standards

Mr. Hegseth’s wife owns $15,000 worth of stock in two of DoD’s top 10 largest contractors, and stock in other top-100 defense contractors, including companies that have settled allegations that they overbilled DoD by millions of dollars
Despite advocating for the generals he would oversee to not join a defense contractor after leaving public service, Mr. Hegseth refused to commit to the same
“When military leaders expect to cash in on their government service by joining a defense contractor after leaving DoD, it leads to questions about the extent to which they made contracting, policy, and programmatic decisions that benefitted defense contractors more than U.S. national security.”
Text of Letter (PDF)
Washington, D.C. –U.S. Senator Elizabeth Warren (D-Mass.) wrote to Mr. Pete Hegseth, nominee for Secretary of the Department of Defense, regarding his ethics conflicts ahead of the Senate’s consideration of his nomination. Mr. Hegseth’s household’s ownership of stock in several defense contractors and his unwillingness to commit to post-employment restrictions he previously advocated for at his confirmation hearing are particularly troubling for the role of Secretary of Defense.
During the Biden Administration, former Secretary of Defense Lloyd Austin III and several other Pentagon appointees mitigated concerns about their potential conflicts of interest by going beyond what was required under ethics law, the presidential ethics pledge, and even agreements with the Office of Government Ethics and the Designated Agency Ethics Officials. During the first Trump administration, Defense Deputy Secretary Patrick Shanahanalso agreedto go beyond what was required by law and set up a screening process to mitigate conflicts of interest.
Senator Warren asked Mr. Hegseth to commit to the following:
“Your wife owns as much as $15,000 worth of stock in two of DoD’s top 10 largest contractors: Northrop Grumman Corporation and Lockheed Martin Corporation. If those holdings ever exceed thede minimisthreshold of $15,000, you will be required to divest — but should do so voluntarily now, given that those holdings present clear conflicts of interest,”wrote Senator Warren.
In his book,The War on Warriors, Mr. Hegseth advocated that “(n)o general in the United States military should be allowed to work in the defense industry for ten years after they retire,” but refused to commit to the same at hisconfirmation hearing.
Asking him to commit to not engage in lobbying activities focused on DoD,Senator Warren said, “(t)he rampant revolving door of former government leaders lobbying the agencies they once led, while their government relationships remain fresh, erodes Americans’ faith in the federal government.”
“By making these commitments, you would increase Americans’ trust in your ability to serve the public interest, rather than the special interests of defense contractors, during your time at DoD. I urge you to demonstrate a commitment to public integrity,”concluded Senator Warren.
Senator Warren asked Mr. Hegseth to reply in writing to these ethics commitments by January 20, 2025.
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