WireMarch 26, 2026 at 12:30 PM
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In a rare bipartisan effort, Sens. Josh Hawley, R-Mo., and Elizabeth Warren, D-Mass., have introduced legislation aimed at ensuring defense contractors prioritize military readiness over shareholder rewards. The Prioritizing the Warfighter in Defense Contracting Act of 2026 seeks to restrict stock buybacks, dividends, and excessive executive pay unless companies meet Pentagon performance standards.
'America’s defense contractors should be focused on expanding production, not padding their bottom lines,' Hawley stated. The lawmakers highlighted that major defense contractors have struggled to deliver weapons systems on time and within budget, instead diverting taxpayer funds into their own coffers.
'It makes no sense for the federal government to fork over billions in taxpayer dollars to giant military contractors while their executives buy back their own company’s stock instead of investing in our national defense,' Warren said.
The legislation grants the Pentagon enhanced oversight tools to identify underperforming contractors and requires those contractors to submit remediation plans. It also empowers the Department of War with stronger enforcement capabilities, including the suspension of contract payments and termination of contracts.
Since 2021, the top four defense contractors—Lockheed Martin, Raytheon, General Dynamics, and Boeing—have spent $89 billion on stock buybacks and dividends, two-thirds of which came from taxpayer dollars, according to Warren’s office.
The bill would codify an executive order signed earlier this year by President Donald Trump, which barred underperforming defense companies from engaging in such practices. 'Now, it’s time for Congress to act by codifying the President’s executive order into law, ensuring that America’s warfighters are prioritized over corporate profit,' Hawley added.