Booz Allen Contracts Canceled by Treasury Department

By Nicholas G. Miller

The Treasury Department canceled all of its contracts with Booz Allen Hamilton in the latest hit the consulting firm has taken from the Trump administration's cuts to government-contract funding.

Shares were down 8.1% to $94 in morning trading.

The Treasury Department on Monday said it currently has 31 contracts with Booz Allen totaling $4.8 million in annual spending and $21 million in total obligations.

"President Trump has entrusted his cabinet to root out waste, fraud, and abuse, and canceling these contracts is an essential step to increasing Americans' trust in government," said Treasury Secretary Scott Bessent.

The department cited the case of a former Booz Allen employee that it said leaked confidential tax returns of hundreds of thousands of taxpayers.

"Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service," Bessent said.

Booz Allen did not immediately respond to a request for comment.

The Trump administration has cut spending on federal contracts and specifically has pushed consulting companies, including Booz Allen, to justify their work and propose substantial cost savings.

The company, which has in the past made 98% of its $12 billion in annual revenue from government-related work, cut thousands of jobs last year due to contract reductions in the company's civil business. It said in October it would restructure its business to cut $150 million in costs.

Last week, Booz Allen raised its fiscal-year profit outlook on the back of its cost-saving efforts and said it was seeing demand strengthen across both its civil and national-security businesses.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

January 26, 2026 11:13 ET (16:13 GMT)