The Ranter

EP05: The Pentagon Failed Its Audit Again. The Budget Went Up Anyway.

• Markus Grant • Season 1 • Episode 5

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0:00 | 10:25

The Pentagon failed its financial audit for the eighth straight year. Auditors could not verify 64 cents of every dollar of budgetary resources, and the budget went up anyway. Meanwhile the same government grades SNAP to the second decimal.

Markus Grant runs the mechanism: cost-plus contracts that pay a fee on top of whatever gets spent, award fees paid out for acceptable work, and a fighter program marketed as jobs in all fifty states so every member of Congress can find theirs. One side of the ledger gets an error-rate target. The other gets a bigger check.

Key receipts:
- 8: consecutive failed Pentagon audits, a disclaimer of opinion with 26 material weaknesses (DoD FY2025 audit)
- 64 cents: of every dollar of budgetary resources that auditors could not verify
- $900.6 billion enacted for fiscal 2026, $1.07 trillion proposed for fiscal 2027
- About $2.4 trillion: to contractors from 2020 to 2024, roughly 54% of Pentagon discretionary spending (Costs of War and Quincy Institute, July 2025)
- 10.62%: the SNAP payment-error rate states are graded to

Receipts and case file: theranter.com/case-file/the-audit-they-dont-run
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