President-elect Donald Trump is reportedly preparing to nominate Stephen Feinberg, a billionaire investor in the defense industry and a significant Trump campaign donor, for the role of Deputy Defense Secretary—the second-highest position in the U.S. Department of Defense. This decision has raised concerns due to Feinberg’s lack of military or organizational leadership experience. The Washington Post first reported the news, highlighting that Feinberg’s nomination follows controversies surrounding Trump’s pick for Secretary of Defense, Fox News weekend host Pete Hegseth. Hegseth has faced backlash over allegations of sexual assault, excessive drunkenness, and financial mismanagement of veterans’ organizations.
According to the Post, Trump has already extended the offer to Feinberg, a move that could place a political ally with significant defense investments—some tied to lucrative Pentagon contracts—in a critical position. Feinberg serves as co-CEO of Cerberus Capital Management, which has investments in hypersonic missile technology and previously owned the private military contractor DynCorp, later acquired by defense firm Amentum in 2020. During Trump’s first term, Feinberg chaired the President’s Intelligence Advisory Board, providing guidance on intelligence and counterintelligence matters.
The Deputy Defense Secretary oversees the day-to-day operations of the Department of Defense, which manages over 3 million service members and civilian employees. The current Deputy Defense Secretary, Kathleen Hicks, holds a PhD in political science from MIT and has extensive Pentagon experience dating back to 1993. Hicks also played a prominent role in assessing defense and national security issues during President-elect Joe Biden’s transition.
Feinberg’s nomination comes amidst revelations of controversial past dealings involving Cerberus Capital. A 2021 New York Times investigation revealed that Saudi operatives involved in journalist Jamal Khashoggi’s 2018 assassination received paramilitary training in the U.S. through a Cerberus-owned security firm, Tier 1 Group, under a State Department-approved contract. Feinberg also has connections to prominent Trump allies, including Steve Bannon and Jared Kushner, as noted in a 2017 New York Times report.
In the past, Feinberg has expressed an aversion to public scrutiny. A Rolling Stone article from 2012 quoted him jokingly telling shareholders in 2007 that anyone leaking information about the firm would face severe consequences, humorously suggesting, “We will kill him. The jail sentence will be worth it.”
