As the summer peak permanent change of station (PCS) moving season approaches, Defense Secretary Pete Hegseth has taken decisive action to overhaul the military’s household goods moving system, responding directly to widespread concerns about the current program’s shortcomings.
In a memorandum dated May 20, 2025, Hegseth instructed the U.S. Transportation Command (TRANSCOM) to implement immediate changes to the Global Household Goods Contract (GHC) and the legacy moving system to better support military families during what has long been recognized as a challenging and often frustrating process.
“We’re heading into peak season of moving — PCS moving — and that process, I know, has been a mess, and we are addressing it,” Hegseth acknowledged publicly.
“We have ... to take some aggressive action and fast.” His candid assessment reflects an understanding of the stress and disruption that military relocations impose on service members and their families, and a commitment to delivering real improvements to ease their burden.
Hegseth’s memo noted that while the PCS process has “never been a great system,” recent shifts with the implementation of the new GHC contract have only worsened conditions.
The contract, intended to streamline and modernize household goods moves, had fallen short of expectations, causing delays, lost or damaged items, and decreased satisfaction among military families.
“We know it’s not working, and it’s only getting worse,” Hegseth said. “We’ve heard your concerns about contractor performance, quality and accountability. We hear you loud and clear, and that’s why we’re taking decisive action immediately.”
His words signal a top-level acknowledgment of failures and an urgent mandate to fix them.
Under Hegseth’s directive, TRANSCOM is ordered to “fully leverage” both the new GHC and the legacy Tender of Service (ToS) program during the 2025 PCS moving season.
The ToS system, which GHC replaced, was the prior mechanism used for moving household goods but also had its own flaws. Hegseth emphasized that the two systems “can talk to each other and work together,” and thus, both will be used “in every way possible” to maximize capacity and improve outcomes.
This dual-system approach is a pragmatic response to the current crisis. The GHC, while designed to consolidate and modernize moving services under a single contractor, has faced significant operational challenges including insufficient vendor participation.
Because the fees paid to independent moving companies under the GHC are reportedly lower than under the legacy ToS program, fewer vendors are willing to provide moving services, creating bottlenecks that delay shipments and frustrate families.
Hegseth has therefore instructed TRANSCOM to adjust payment rates within the GHC to align with those of the ToS system. This rate adjustment aims to incentivize more vendors to join the moving network and ensure sufficient capacity to meet the seasonal surge in military moves.
The increased competition and vendor availability are expected to reduce delays, improve service quality, and offer military families more reliable moving options.
Another key aspect of the reforms involves personally procured moves (PPMs), formerly known as do-it-yourself (DITY) moves. Some service members choose to move their household goods independently by renting vehicles, purchasing packing materials, or hiring commercial movers on their own.
These moves require the service member to file for reimbursement from the Defense Department, but reimbursement rates have varied widely and often fall short of actual costs.
Hegseth highlighted that current reimbursement rates for PPMs are insufficient, causing some service members to bear out-of-pocket expenses. To address this, he has ordered an increase in the government reimbursement rate from 100% to 130% of the costs associated with PPMs.
This increase is based on a thorough analysis of market costs and aims to fully compensate service members who opt to take on the responsibility of moving their own belongings.
“We’re increasing the government reimbursement rate to 130% instead of 100%, which will cover [the cost of a PPM], we believe, based on the math we’re looking at, full compensation when you take that on as a responsibility of moving you or your family,” Hegseth explained.
This change empowers service members with more financial support and flexibility in managing their relocations.
Recognizing that the PCS moving process is multifaceted and deeply impactful, Secretary Hegseth has also called for a comprehensive review of the entire PCS system.
He announced the formation of a dedicated task force charged with examining how moves are conducted and recommending rapid, actionable improvements to enhance the experience for service members and their families.
“We’re going to review the entire PCS process and recommend rapid actions inside the department for the best possible moving experience for our service members and their families,” Hegseth said.
This task force is expected to engage with stakeholders across the Department of Defense and external partners, identifying systemic inefficiencies and proposing structural reforms.
In his remarks, Hegseth poignantly emphasized that military relocations are about far more than logistics. “Ultimately, this is not just about moving boxes. This is about moving families, husbands, wives, kids, valuables, memories, everything — and you deserve that kind of respect across the board,” he stated.
His words reflect the human dimension of military service and the vital importance of treating families with dignity and care throughout the relocation process.
Hegseth vowed accountability at every level of leadership overseeing the PCS process, signaling a zero-tolerance policy for poor performance or neglect. “We owe it to you to get it right. Everything’s on the table. We’re going to track this progress weekly. We’re going to hold leaders accountable at every level, as we just did, and we will not tolerate poor performance,” he said.
This declaration sends a clear message that failures will be met with consequences and that leadership must prioritize service members’ needs.
The PCS moving system is one of the largest and most complex logistical operations managed by the Department of Defense each year.
Tens of thousands of military families relocate as part of routine reassignments, involving coordination of packing, transportation, customs, and delivery, often across international borders. Any disruption in this process can cause significant stress, financial hardship, and disruption to military readiness.
The problems that surfaced with the rollout of the Global Household Goods Contract reflect the challenges inherent in transforming such a massive program.
While the GHC aimed to consolidate contracts under a single provider to simplify management and improve accountability, early implementation revealed gaps in capacity and service quality.
The current reforms initiated by Secretary Hegseth seek to balance modernization with practical solutions, including leveraging the legacy system where beneficial.
Increasing reimbursement rates for personally procured moves also recognizes the diversity of military family circumstances and preferences. Some service members prefer greater control over their moves, and adequate financial support for PPMs is essential to make this a viable option.
Secretary Hegseth’s task force and the directive to utilize both GHC and legacy systems demonstrate a comprehensive and adaptive strategy to address immediate concerns while planning for long-term improvements.
The weekly progress tracking and heightened accountability mechanisms signal a robust management approach designed to restore trust and reliability.
Military families rely heavily on the Department of Defense to facilitate smooth relocations, and failures in this area can adversely impact morale, retention, and overall well-being.
By prioritizing reforms and openly acknowledging the current shortcomings, Secretary Hegseth is championing the needs of service members and signaling a commitment to operational excellence.
His leadership reflects a broader focus within the Department on improving quality of life for military personnel and their families. Efficient and respectful management of PCS moves is a critical component of this agenda, impacting thousands of households and the readiness of the force.
In conclusion, Defense Secretary Pete Hegseth’s decisive actions to reform the military household goods moving program mark a critical effort to correct systemic failures and enhance the experience of military families during permanent changes of station.
By leveraging multiple moving systems, adjusting reimbursement rates, establishing a PCS task force, and demanding accountability, Hegseth is steering a path toward a more reliable, responsive, and family-centered PCS process.
His approach underscores a clear understanding of the operational and human dimensions of military relocations and a steadfast commitment to getting it right for those who serve.
