Trump’s pick for deputy defense secretary told senators that the United States must expand the defense industrial base to keep pace with China.
Stephen Feinberg, President Donald Trump’s nominee for deputy defense secretary, told lawmakers on Wednesday that the opportunity to build weapons should be extended to major U.S. manufacturers such as Ford and General Motors, and not remain limited to traditional defense contractors.
Feinberg, co-founder and CEO of Cerberus Capital Management, testified before the Senate Armed Services Committee on Feb. 26, emphasizing the need to integrate more companies into defense production. Expanding the defense industrial base is crucial for keeping pace with China, whose military is determined to surpass the United States, he argued.
The U.S. defense industry is currently dominated by five major contractors—Lockheed Martin, Boeing, RTX, Northrop Grumman, and General Dynamics. Feinberg contended that non-defense firms should have a chance to participate.
“I would go to big manufacturing companies, give them a shot on new problems if we think their capabilities can meet it,” he said. “To give them a shot without a wide-scale competition with all our big defense companies, which, by the way, are too consolidated.”
He added that while this approach may not seem like the most competitive solution initially, it would lead to greater competition in the long run.
Feinberg argued that excessive consolidation has created over-reliance on a few large firms, making the Department of Defense vulnerable. He emphasized the need for the military to adopt faster, more scalable development methods, as has been occurred in the private sector.
Feinberg’s remarks come at a time when the Defense Department is pushing to ramp up production across multiple sectors, including shipbuilding and autonomous systems. He warned that China is determined to surpass the United States militarily and called for urgent measures to address significant military shortages.
“China is incredibly determined, they feel a great sense of urgency, and they’ll be fully dedicated to becoming the strongest nation in the world and having dominance over the United States,” Feinberg told senators.
He outlined critical shortfalls in areas such as shipbuilding, nuclear modernization, aircraft development, cyber defense, hypersonics, space defense, and drone countermeasures.
“We really need to plug these shortages, focus on our priorities, get rid of legacy programs, be very disciplined, while at the same time focusing on the economics,” he said. “If we do that, given America’s great innovative capability, entrepreneurship, we will defeat China. If we don’t, our very national security is at risk.”
Feinberg also addressed the lagging production of nuclear submarines, acknowledging that while the United States has the manufacturing capacity, collaboration with the private sector remains a challenge.
“Our supply chain is definitely weak. Our workforce needs to be improved. But a big piece of improving our supply chain is working more closely with our private sector,” he said.
When asked about accelerating innovation for military technology, Feinberg urged major tech firms to be more engaged in national defense.
“They should be all in and always helping us, but they’re not,” he said.
Feinberg, who previously chaired the President’s Intelligence Advisory Board, also vowed to scrutinize the Pentagon’s spending line by line to ensure efficiency and eliminate waste.
He also referenced the longstanding effort to get the Pentagon to pass a standard financial audit—a goal that Defense Secretary Pete Hegseth has pledged to achieve within the next four years.