Trump Administration Consulting Crackdown Spirals to Catch Top Companies with Stern Warning
The Trump administration consulting crackdown has intensified. The government, led by President Donald Trump, is demanding that the 10 largest consulting firms under contract with the U.S. spell out exactly how they’re spending billions of taxpayer money — and in straightforward language, not cryptic business speak.
According to Bloomberg, Josh Gruenbaum, the government’s new procurement chief (also known as buying services), sent letters to leading firms such as Accenture and Booz Allen Hamilton. They were asked to show how they’ll save money or cut wastefulness, and they have to do it in language “a 15-year-old should be able to understand.” The deadline is March 31.
Trump Administration Consulting Crackdown: An Effort to Save Taxpayer Dollars
Trump administration consulting crackdown is simply part of a bigger effort to put an end to government overspending. Gruenbaum cautioned such consulting giants with the words, “Don’t send back reports that don’t show any waste or savings.” In case they do, it would mean they are not dedicated to the Trump administration’s efforts at cutting spending.
Gruenbaum, a former investment banker and private equity executive before President Trump tapped him for this role, requires the consulting firms to offer tangible ideas on how to reduce government spending.
Accenture Takes the Brunt First
Accenture, one of the companies implicated in the Trump administration consulting crackdown, was hit earlier this week. Its stock fell following the company’s statement that its U.S. government business is slowing down somewhat as it tries to lower the federal budget size. Accenture CEO Julie Sweet said that the government business comprises 8% of the company’s worldwide sales and 16% of its Americas business.
Another firm, Science Applications International Corp., said it has not been impacted so far but realizes that things can shift rapidly as Trump’s administration keeps pressing against what it refers to as “waste, fraud, and abuse.”
Why is the Trump Administration Consulting Crackdown Happening Now?
The Trump administration recruitment crackdown comes after whistleblowers revealed that the U.S. government alone spent $759 billion on contracts in 2023. These contracts include hiring outside companies to do research, provide technology support, and provide expert opinions. While some think hiring these companies saves money, others think it is unnecessary spending.
The government is also asking these companies to provide reports on how much they’ve made between 2019 and 2024, what they did, and how they charge for their services.
The government has already canceled 1,700 contracts under this new aggressive cost-cutting initiative.
