Veteran-Owned Firms Lose Military Education Deals in Wake of Budget Cuts

Two companies dedicated to supporting veterans have reported that their contracts for military education have been abruptly terminated. This development comes as the Pentagon implements stricter budget measures and Congress remains at an impasse regarding funding. Programs aimed at assisting troops with tuition benefits and exam preparation have reached tens of thousands of individuals each year.

Vantage Point Consulting, a veteran-owned firm, implemented the Career Path DECIDE (CPD) system to assist military personnel in strategically utilizing their tuition assistance (TA) funds. The initiative directed service members towards pursuing degrees in high-demand STEM fields, while steering them clear of low-value or predatory educational programs. Vantage Point reports that the CPD has successfully transitioned 20% of first-time users into STEM fields, significantly enhancing post-military employment opportunities for the 200,000 service members who transition each year.

In a surprising turn of events, the $2.5 million contract, which accounted for a mere 0.33% of the military’s $750 million TA budget, has been terminated. Company leader Jeffrey Carpenter has placed the blame on the Department of Government Efficiency (DOGE), asserting that even the program’s sponsors were not informed of the cancellation. “Six years of hard work vanished in just one day,” he stated.

In a significant development, Peterson’s, a test-preparation organization, has experienced a loss of funding for its longstanding program, which has been operational for 15 years. This initiative has historically assisted 30,000 military personnel and their families each year in enhancing their Armed Forces Classification Test scores. CEO Brian Coyne has projected that the program will yield a return on investment between $30 million and $40 million, attributing this to enhanced troop retention and advancement.

The recent budget cut was not a result of DOGE fluctuations, but rather stemmed from Congress's inability to approve a new defense budget. This situation has compelled the Pentagon to operate under outdated funding levels. The contract for the Petersons is set to conclude on June 29 officially.

Both companies reported receiving backing from voluntary education leaders throughout the services, who expressed surprise at the cuts. Advocates are actively campaigning for the reinstatement of the programs.

Carpenter expressed optimism, stating, “We’re hopeful that once the real impact is understood, funding will be restored.”

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