Hegseth Orders Overhaul of Military Household Goods Moving Program

As the peak military moving season reaches full momentum, Defense Secretary Pete Hegseth has taken decisive action to address widespread problems with the Pentagon’s system for moving service members’ household goods.

In a memo sent on May 20 to senior Pentagon officials, combatant commanders, and defense agencies, Hegseth announced immediate changes targeting “recent deficiencies” in the new Global Household Goods Contract (GHC).

His interventions include raising reimbursement rates for troops and their families who choose to move some or all of their belongings themselves.

The rate will increase to 130% of what the government would have paid under the GHC for personally procured moves conducted between May 15 and September 30, up from the current 100%.

This adjustment is a direct response to service members’ frustrations and an acknowledgment of shortcomings in the existing system.

“I take my responsibilities to our service members, civilians, and their families seriously,” Hegseth wrote in the memo, emphasizing his commitment to improving the moving experience for military families who face frequent relocations as part of their service.

He recognized that the moving process had long been fraught with challenges and voiced determination to deliver tangible solutions.

The Global Household Goods Contract is a massive undertaking intended to streamline and improve how military moves are managed. Potentially worth up to $17.9 billion over nine years, the GHC consolidates management of household goods moves under a single contractor, HomeSafe Alliance. 

The contract was designed to fix perennial issues such as missed pickups and deliveries, damaged or lost items, and the complex claims process that had plagued previous systems.

However, since its rollout began earlier this year, the program has encountered numerous problems, sparking dissatisfaction among service members and their families.

Military families have reported significant delays in pickup and delivery, with some shipments taking far longer than promised to reach their destinations.

These delays disrupt the lives of service members who depend on timely moves for personal stability and mission readiness. Frustration has mounted over the quality of contractor performance and the lack of accountability, concerns that prompted Hegseth to act swiftly.

In a video posted on the social platform X, the defense secretary described the situation bluntly as “a mess,” conceding that “it’s never been a great system.”

His candid assessment reflected a departure from bureaucratic euphemism, signaling urgency and a no-nonsense approach to reform. Hegseth acknowledged that the current reimbursement rates do not accurately reflect market realities and are insufficient to incentivize contractors to provide timely and quality service.

To remedy this, Hegseth ordered a comprehensive review of the rates paid to moving companies under both the new GHC system and the legacy moving program that operated prior to the GHC rollout.

This review aims to ensure that pricing aligns with market conditions and that enough companies participate to meet demand.

Since the reimbursement rates for service members who move their own goods are linked to contractor rates, increasing these payments to 130% of the GHC rate for personally procured moves aims to offer fair compensation and encourage more troops to opt for this flexible option if they choose.

HomeSafe Alliance, the contractor awarded the GHC in 2021, welcomed Hegseth’s directives in a statement to Military Times.

The company expressed gratitude for the defense secretary’s attention and said that raising rates to account for inflation experienced over the last four years would enhance its ability to provide “world-class moving services for our nation’s heroes.”

This statement underscored the challenges HomeSafe Alliance faces as it scales operations to meet the Pentagon’s expectations and service members’ needs.

The U.S. Transportation Command (TRANSCOM), which oversees military logistics, awarded the GHC contract after a lengthy process marked by protests of the award decision.

The contract began to be implemented in 2023, with moves gradually transitioning to the new system starting in April 2024. Initially, TRANSCOM intended to transfer all domestic household goods shipments under the GHC by this year’s peak moving season, but those plans were scrapped amid mounting issues with HomeSafe Alliance’s capacity.

The company struggled to provide enough personnel and resources to pack, load, truck, and unload belongings at the necessary scale.

In addition to raising rates and reviewing contractor performance, Secretary Hegseth has directed TRANSCOM to hold both the GHC and the legacy moving program accountable.

He has mandated weekly progress updates to be submitted to the offices of the undersecretary of defense for personnel and readiness, as well as the undersecretary of defense for acquisition and sustainment.

This increased oversight aims to ensure that improvements are tracked closely and problems are addressed promptly.

Moreover, Hegseth has ordered the formation of a dedicated Permanent Change of Station (PCS) task force comprising officials from key Pentagon offices.

This task force is charged with taking swift and decisive action to improve, expand, terminate, or transfer responsibilities related to both the GHC and legacy moving programs as necessary.

The task force will work to identify systemic issues and recommend comprehensive reforms to fix the moving process holistically.

Hegseth promised a thorough overhaul following the peak moving season. “We’re going to fix it holistically after peak moving season, and we’re going to throw the kitchen sink at it to make sure your moves work this season as well,” he said.

His approach reflects recognition that piecemeal fixes are insufficient and that enduring solutions require comprehensive attention to every aspect of the moving experience.

HomeSafe Alliance officials expressed optimism about collaborating with the PCS task force. They highlighted how their program aims to modernize and digitize the move process, leveraging technology to resolve decades-old problems with military relocations.

The company hopes to demonstrate tangible improvements in speed, reliability, and customer satisfaction through this partnership.

The challenges confronting the GHC rollout are emblematic of the complexity inherent in military logistics and the scale of relocating tens of thousands of service members and their families annually.

Moves involve coordination across multiple states, coordination with housing authorities, customs officials for overseas shipments, and various transportation modes. Any disruption in this chain has ripple effects that can significantly impact service members’ lives.

Critics of the GHC rollout point to early warning signs that the single-contractor model might struggle to provide sufficient capacity and flexibility. Consolidating contracts under one provider aims to simplify oversight but may reduce competitive pressures that incentivize high performance.

HomeSafe Alliance’s difficulties in scaling its workforce and resources have led to calls for alternative approaches or reintroducing multiple contractors to foster competition.

Secretary Hegseth’s interventions also reflect growing awareness within the Department of Defense that military families’ quality of life directly affects morale and readiness.

Reliable, stress-free moves enable service members to focus on their missions and minimize personal disruption. The high frequency of Permanent Change of Station moves among military personnel—sometimes multiple times within a few years—means that the household goods program must function efficiently year-round.

Increasing the reimbursement rate for personally procured moves is one way to empower service members, offering them more control and potentially alleviating pressure on contractor logistics chains.

This option allows troops and families to coordinate their own moves while receiving government compensation that better aligns with actual costs, making it a more viable choice.

The heightened scrutiny of the household goods program and the active role Secretary Hegseth has taken signal a shift toward greater accountability and responsiveness in military support services.

It reflects broader efforts within the Pentagon to modernize not only weapons systems and combat capabilities but also the infrastructure and services that underpin military life.

In conclusion, Defense Secretary Pete Hegseth’s immediate orders to reform the troops’ household goods moving program mark a critical response to widespread dissatisfaction and operational failures with the new Global Household Goods Contract.

By raising reimbursement rates, increasing oversight, forming a dedicated task force, and working closely with contractors, Hegseth aims to ensure that military families receive the quality service they deserve during one of the most stressful aspects of military life—relocation.

The coming months will reveal the effectiveness of these interventions as the Pentagon seeks to stabilize and improve this essential support function during the ongoing peak moving season and beyond.