Trump lines up billionaire defense investor and megadonor to be No. 2 at Pentagon

President-elect Donald Trump is reportedly set to nominate Stephen Feinberg, a billionaire defense industry investor and major Trump megadonor—despite his lack of military or organizational leadership experience—for the second-highest position at the U.S. Department of Defense, Deputy Defense Secretary. The Washington Post first broke the news on Tuesday afternoon, which comes as Trump’s pick for U.S. Secretary of Defense, Fox News weekend host Pete Hegseth, faces mounting criticism and negative press amid numerous scandals including alleged sexual assault, “aggressive drunkenness,” and financial mismanagement of veterans’ organizations.

Trump has already offered the job to Feinberg, according to the Post, calling it “a decision that could elevate a longtime political supporter with investments in defense companies that maintain lucrative Pentagon contracts.”

“Feinberg is the co-CEO of Cerberus Capital Management, which has invested in hypersonic missiles and which previously owned the private military contractor DynCorp,” the Post reports. “DynCorp was acquired by another defense firm, Amentum, in 2020. During the first Trump administration, Feinberg led the President’s Intelligence Advisory Board, which provides the U.S. leader advice on intelligence assessments and estimates and counterintelligence matters.”

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“The deputy defense secretary typically manages day-to-day operations of the massive bureaucracy with a combined workforce of more than 3 million service members and civilian employees,” the Post explained.

The current Deputy Defense Secretary is Kathleen Hicks. She holds a master’s in national security studies, and her PhD in political science from the Massachusetts Institute of Technology (MIT). Hicks started her career at the Pentagon as a civil servant in 1993. For three years she was a senior fellow at the Center for Strategic and International Studies (CSIS) before returning to the Pentagon under President Barack Obama in 2009. She has served as Deputy Undersecretary of Defense for strategy, plans, and forces, and Principal Deputy Under Secretary of Defense for policy.

In 2020, President-elect Joe Biden chose Hicks to lead “the 23-person agency review team’s assessment of defense and national-security related issues,” Defense Daily reported.

“These teams are composed of highly experienced and talented professionals with deep backgrounds in crucial policy areas across the federal government. The teams have been crafted to ensure they not only reflect the values and priorities of the incoming administration, but reflect the diversity of perspectives crucial for addressing America’s most urgent and complex challenges,” the Biden transition team said in a statement, according to Defense Daily.

Feinberg has a bachelors’ from Princeton.

In 2021, The New York Times reported that the four Saudis “who participated in the 2018 killing of the Washington Post journalist Jamal Khashoggi received paramilitary training in the United States the previous year under a contract approved by the State Department, according to documents and people familiar with the arrangement.”

“The training was provided by the Arkansas-based security company Tier 1 Group, which is owned by the private equity firm Cerberus Capital Management,” the Times reported.

In July of 2017, a New York Times report noted Feinberg’s ties to the now far-right podcaster and political strategist Steve Bannon, and Trump son-in-law Jared Kushner.

“Erik D. Prince, a founder of the private security firm Blackwater Worldwide, and Stephen A. Feinberg, a billionaire financier who owns the giant military contractor DynCorp International, have developed proposals to rely on contractors instead of American troops in Afghanistan at the behest of Stephen K. Bannon, Mr. Trump’s chief strategist, and Jared Kushner, his senior adviser and son-in-law, according to people briefed on the conversations.”

A 2012 Rolling Stone profile of then-presidential candidate Mitt Romney, included this statement from Feinberg.

“’We try to hide religiously,’ explained Steven [sic] Feinberg, the CEO of a takeover firm called Cerberus Capital Management that recently drove one of its targets into bankruptcy after saddling it with $2.3 billion in debt. ‘If anyone at Cerberus has his picture in the paper and a picture of his apartment, we will do more than fire that person,’ Feinberg told shareholders in 2007. ‘We will kill him. The jail sentence will be worth it.’ ”