I once gave a presentation to a group of Senior Department of Defense managers on the role that management must play in the transition to modern software engineering. After I introduced risk-driven iterative development and it's ability to reduce waste and improve predictability by identifying and resolving big risks before making large investments, one of them suddenly rose and exclaimed

"If I had a nickel for every time we flushed $50M down the toilet, I'd be a rich man!"

There is enormous waste in the Department of Defense. Eliminating it would provide all of the funding needed - and then some.