Pentagon tech innovation unit to shut down due to hemorrhaging staff

ISTANBUL

The Defense Digital Service (DDS), a key Pentagon tech team created to modernize US military operations, will shut down by May 1 after all 14 members, including Director Jennifer Hay, resigned, an official told The Hill on Tuesday.

Most departures follow the Trump-era deferred resignation policy. The team cited administrative hurdles and policies introduced since Trump took office in January as reasons for leaving.

"Although DDS was excited to support DoD’s (Defense Department) efforts to improve efficiencies and champion software modernization initiatives, the Administration ... hiring freezes, rescinding remote work, and travel restrictions were making us non-mission capable," said a member of the office.

"As a result, most of the team elected to resign," the official added.

Politico first reported the closure, also linking it to pressure from the unofficial Department of Government Efficiency, a controversial team seeking to shrink the government. DDS staff had expressed interest in supporting the team, led by top Trump donor Elon Musk, but it reportedly excluded them from its artificial intelligence automation work.

Founded in 2015 by then-Defense Secretary Ash Carter, DDS aimed to inject Silicon Valley-style innovation into the Pentagon. Carter envisioned a digital team capable of swiftly addressing complex IT issues across the military.

DDS was involved in cybersecurity, AI integration, digital services for military families, and counter-drone technology.

While the office will disband, the official said most ongoing projects have been reassigned.

The Pentagon declined further comment, The Hill reported.