The Pentagon said it would pull funding from 127 Defense Department projects, including schools and daycare centres for military families, as it diverts $3.6-billion to fund President Donald Trump's wall along the U.S.-border with Mexico. Trump declared a national-emergency earlier this year to access the funds from the military construction budget. In March, the Pentagon sent to Congress a broad-list-of-projects that could be affected.

The US Defense Department said Tuesday it was freeing up $3.6-billion in funds budgeted for other projects to build a wall on the Mexican border as ordered by President Donald Trump. Six weeks after being confirmed by Congress, Defense-Secretary Mike Esper has signed off on the diversion of funds from 127 "deferred military-projects" both inside and outside the country, said Pentagon spokesman Jonathan Hoffmann.

The US Defense Department said on Wednesday it is cancelling a Boeing Co contract for a "kill vehicle" due to technical design problems after spending $1.2 billion on the project. Boeing said it accepts the "decision to terminate work" on the vehicle and supports the competition for a new system, it said in a statement. "Ending the programme was the responsible thing to do."