Former US president Donald Trump had ordered the diversion of billions of dollars in Pentagon money to pay for the barrier after being denied funding by Congress.

President Joe Biden announced a halt to border wall construction after taking office in January.

"Consistent with the president's proclamation, the Department of Defense is proceeding with canceling all border barrier construction projects paid for with funds originally intended for other military missions," deputy Pentagon spokesman Jamal Brown said.

Brown said the Defense Department "has begun taking all necessary actions to cancel border barrier projects."

"Today's action reflects this administration's continued commitment to defending our nation and supporting our service members and their families," he said.

Trump launched his presidential campaign in 2015 with a pledge to build a wall along the US-Mexico border and to make Mexico pay for it.

Mexico refused and so did the House of Representatives after Democrats took control in 2018.

Trump ultimately bypassed Congress by controversially dipping directly into the Pentagon's coffers, forcing the Defense Department to allocate billions of dollars for the project.