As peak military moving season gets underway, Defense Secretary Pete Hegseth has ordered urgent changes to the Pentagon’s troubled household goods relocation program, responding to growing frustration from service members and their families.

The swift action comes amid mounting criticism over the performance of the new Global Household Goods Contract (GHC), a program designed to modernize military moves but now mired in logistical failures.

In a memo issued May 20 to senior Pentagon leaders, combatant commanders, and defense agencies, Hegseth acknowledged “recent deficiencies” in the execution of the GHC and outlined decisive steps to address the situation.

“I take my responsibilities to our service members, civilians and their families seriously,” Hegseth wrote.

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Among the most significant changes is an increase in reimbursement for personally procured moves — when service members choose to move their household items themselves rather than use government-hired movers.

From May 15 through September 30, the reimbursement rate will jump to 130% of what the government would have paid under the GHC contract, up from the standard 100%.

Hegseth was blunt in his assessment of the program’s shortcomings, releasing a video on X (formerly Twitter) in which he called the current system “a mess” and acknowledged “it’s never been a great system.”

“We know it’s not working and it’s only getting worse. We’ve heard your concerns about contractor performance quality and accountability. We hear you loud and clear. That’s why we’re taking decisive action immediately,” he said.

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The GHC contract, awarded to HomeSafe Alliance by U.S. Transportation Command (TRANSCOM) in 2021, is worth up to $17.9 billion over nine years.

Its goal was to streamline and improve military relocations, solving long-standing issues such as missed pickups, broken or lost items, and lengthy claims processes.

However, after a delayed launch due to protests and appeals, the contract’s rollout in April 2024 has been plagued by problems.

Many families have reported delays in pickups and deliveries. Compounding the issue, numerous moving companies have declined to participate in the new GHC system, citing uncompetitive rates that fail to reflect market realities.

The Pentagon estimates that more than 5,700 shipments have already been turned away by GHC and had to be re-assigned to the legacy system, which itself is under strain.

Hegseth acknowledged that “current GHC rates fail to reflect market rates,” and he has ordered a full review of compensation levels for both GHC and legacy system movers.

Because reimbursement rates for self-moves are tied to GHC’s pricing, increasing the self-move reimbursement rate is intended to incentivize service members and alleviate some pressure from the struggling system.

HomeSafe Alliance, in a statement to Military Times, expressed appreciation for Hegseth’s attention and support.

“DoW raising our rates to account for significant inflation from the last four years would substantially benefit our ability to facilitate world-class moving services for our nation’s heroes,” company officials stated.

Hegseth’s memo also outlines structural changes. He has ordered TRANSCOM to provide weekly performance updates to the offices of the underSecretary of War for personnel and readiness and the underSecretary of War for acquisition and sustainment.

Additionally, those offices are tasked with forming a PCS (Permanent Change of Station) task force to evaluate and, if necessary, expand, terminate, or transfer responsibilities within both the GHC and legacy programs.

“We’re going to fix it holistically after peak moving season, and we’re going to throw the kitchen sink at it to make sure your moves work this season as well,” Hegseth said.

TRANSCOM initially planned to move all domestic shipments under GHC by this moving season, but scrapped that timeline earlier this year as HomeSafe Alliance struggled to scale operations and provide adequate capacity for packing, loading, transporting, and unloading.

In response to the crisis, Hegseth announced the removal of Andy Dawson, the civilian head of the program. He will be replaced by Army Maj. Gen. Lance G. Curtis, commander of the Military Surface Deployment and Distribution Command, who will now report directly to Hegseth.

Industry leaders say the uncertainty and conflicting messaging have created chaos for movers.

“It’s a season of instability,” said Dan Bradley, vice president of government and military relations for the International Association of Movers.

He explained that companies had been preparing to move 100% of Department of War shipments under the new GHC program. The abrupt shift has made it difficult for them to plan for hiring or to invest in additional resources such as trucks.

“They want to support service members in those moves,” Bradley said. “They’re doing the best they can. They want to stay in the program.”

As the Pentagon attempts to restore confidence in the system, the coming months will be a critical test of whether Hegseth’s aggressive intervention can bring much-needed stability and reliability to the military relocation process — something families across the armed forces are hoping for.

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