← Back to Executive Order Summaries

Modernizing Defense Acquisitions and Spurring Innovation in the Defense Industrial Base

Executive Order: 14265
Issued: April 9, 2025
Federal Register Doc. No.: 2025-06461
Federal Register: HTMLPDF

Executive Order 14265 frames the current defense acquisition system as inadequate for providing the speed and flexibility needed for America's Armed Forces to maintain decisive advantages. Characterizing the existing system as suffering from "years of misplaced priorities and poor management," the order establishes a policy direction focused on accelerating defense procurement and revitalizing the industrial base to "restore peace through strength." The order presents this comprehensive overhaul as essential for ensuring that the United States military maintains its position as the most lethal warfighting force globally, identifying both the defense industrial base and acquisition workforce as strategic national assets.

The executive order mandates multiple reviews and reform plans with specific timeframes. Within 60 days, the Secretary of Defense must submit a plan to reform acquisition processes, emphasizing expedited procedures including a preference for commercial solutions and Other Transactions Authority. The order also requires a detailed internal regulations review to eliminate unnecessary guidance and apply a ten-for-one rule for any new regulations, explicitly connecting to Executive Order 14192 on deregulation. Additionally, it orders a comprehensive review of all major defense acquisition programs within 90 days, with potential cancellation for any programs that are 15% behind schedule, 15% over cost, failing to meet key performance parameters, or unaligned with mission priorities. The order further mandates a review of the Joint Capabilities Integration and Development System within 180 days.

Implementation responsibilities fall primarily to the Secretary of Defense, working through various military department secretaries and Pentagon officials including the Deputy Secretary of Defense and the Under Secretary of Defense for Acquisition and Sustainment. The order establishes specific implementation mechanisms, including Configuration Steering Boards for risk management and the creation of field training teams led by senior acquisition executives to provide hands-on guidance for implementing innovative acquisition approaches. The order also directs the development of policies to incentivize acquisition officials to utilize innovative authorities and take "measured and calculated risks." While the order characterizes these reforms as streamlining and modernizing defense acquisition, the actual impact will depend on how agencies interpret and implement the directive's broad mandates within existing legal frameworks and available appropriations.