White House reviews candidates to replace Deputy Defense Secretary Steve Feinberg, sources say

The White House has reviewed candidates to potentially replace Deputy Secretary of Defense Steve Feinberg, according to three people familiar with the discussions. The development signals that further leadership changes could be coming for a Pentagon already experiencing unusually high staff turnover.

The effort, which was underway in June, has included conversations with senior senators about whether the administration's picks would have sufficient support to be confirmed, two of the sources said. One added that the review was still ongoing as of late August. Reuters could not determine when the White House first began considering candidates.

The three sources said no decision had been made to remove Feinberg from his post. They did not disclose why the White House was reviewing potential replacements or specify which candidates were under consideration.

Official Responses

White House spokeswoman Anna Kelly dismissed the report, stating: "These so-called anonymous 'sources' have no idea what they are talking about."

She added: "President Trump appreciates the work of Secretary Hegseth, Deputy Secretary Feinberg, and the entire Department of War, whose record of success in Operation Epic Fury, Operation Absolute Resolve, and Operation Midnight Hammer speaks for itself," referring to U.S. military operations in Iran and Venezuela.

The Pentagon denied that a process was underway to replace Feinberg. In a statement to Reuters, Secretary of Defense Pete Hegseth said Feinberg has his full support and "isn't going anywhere."

The Pentagon did not provide a comment from Feinberg and declined to make him available for an interview.

Context of Pentagon Turnover

A departure by Feinberg, the billionaire co-founder of private equity firm Cerberus Capital Management, would mark the most senior staff change for a department that has already seen a string of high-profile departures under Secretary Hegseth:

• Army Secretary Dan Driscoll resigned this week following months of tension with Hegseth, according to a source familiar with the matter. The Army has declined to comment on the reasons for his departure.
• Navy Secretary John Phelan and several senior Army leaders have also departed in recent months.

Feinberg's Performance and Challenges

Feinberg, who vowed to accelerate U.S. munitions production, has not yet met that goal, according to analysts who say the U.S. industrial base cannot ramp up quickly. Some defense industry executives say his task has been complicated by the slow pace of congressional appropriations, despite immense pressure from the administration.

In his statement to Reuters, Hegseth said Feinberg "has worked tirelessly to rebuild our Defense Industrial Base and ensure our military has everything it needs to win, and I look forward to continuing to work with him." He added: "He's doing a tremendous job for President Trump, for the Department, and for our warfighters."

Frustration Over the Iran War

President Trump has increasingly expressed frustration with the lack of progress in the six-month-old Iran war, which has settled into a costly standoff between the U.S. and Iran.

One consequence has been a drawdown of U.S. weapons stockpiles. Reuters has reported that the U.S. military faces significant shortages of certain munitions, which have alarmed Congress and military leaders.

Trump has dismissed the concerns, saying the U.S. has "far more munitions than anyone in the world."

However, according to The Washington Post, during an exchange with Trump at Camp David earlier this month, Hegseth blamed Feinberg for allowing stockpiles of long-range guided missiles and air-defense interceptors to shrink.

President Donald Trump listens as Defense Secretary Pete Hegseth speaks during a cabinet meeting at Camp David in Thurmont, Maryland, on July 31, 2026. (Daniel Heuer/Reuters)

The White House has called the report "fake news." In a statement to Reuters, chief Pentagon spokesman Sean Parnell said: "Secretary Hegseth did not mislead anyone about our munitions posture, and he did not blame Deputy Secretary Feinberg."

Feinberg's Pentagon Initiatives

Appointed by Trump last year, Feinberg has attempted to reshape the Pentagon by:

• Ramping up the U.S. military's direct investments in companies
• Delivering loans to military contractors through multiple offices inside the department, including the Office of Strategic Capital and the newly created Economic Defense Unit

In an Aug. 18 memo sent to defense firms and seen by Reuters, Feinberg called on contractors to speed up production and provide more transparency around pricing.