Booz Allen Contracts Canceled by Treasury Department — Update

By Nicholas G. Miller

The Treasury Department canceled 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 10% to $91.86.

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.

The department cited the case of former Booz Allen employee Charles Littlejohn, who leaked confidential tax information on President Trump and other Americans to news organizations while working as an Internal Revenue Service contractor.

"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," said Treasury Secretary Scott Bessent.

Littlejohn pleaded guilty to a federal crime and is currently in prison, but is appealing his sentence. Booz Allen has filed a court brief against the appeal, saying that Littlejohn hid his activity from the company as well as the IRS.

"We have consistently condemned in the strongest possible terms the actions of Charles Littlejohn," a Booz Allen spokesperson told The Wall Street Journal. "Booz Allen fully supported the U.S. government in its investigation."

"Booz Allen stores no taxpayer data on its systems and has no ability to monitor activity on government networks," the spokesperson added.

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 14:30 ET (19:30 GMT)