FIRST ON FOX: An unlikely bipartisan duo is teaming up to force defense contractors to prioritize military readiness over shareholder value.
Sens. Josh Hawley, R-Mo., and Elizabeth Warren, D-Mass., introduced legislation that would require major defense contractors to prioritize delivering weapons by fulfilling their contracts fueled by taxpayer dollars over rewarding shareholders, with stiffer guardrails and oversight on the companies.
Their bill, Prioritizing the Warfighter in Defense Contracting Act of 2026, would restrict stock buybacks, dividends and high executive pay unless companies meet Pentagon performance standards in their contracts.
TRUMP OVERHAULS US ARMS SALES TO FAVOR KEY ALLIES, PROTECT AMERICAN WEAPONS PRODUCTION
“America’s defense contractors should be focused on expanding production, not padding their bottom lines,” Hawley said in a statement to Fox News Digital. “But even as they make record profits, some firms have spent big on stock buybacks, dividend payouts and exorbitant executive salaries.”
The lawmakers argued that for several years, defense contractors have struggled to deliver weapons systems on time, on budget or in sufficient quantities for the military, and instead dumped the eye-popping sums of taxpayer money flowing to them into their own coffers, rather than invest in research and development that could speed up the process.
They pointed to a Government Accountability Office (GAO) report published last year that found that defense acquisition programs were plagued by delays and cost overruns, with delays for major programs increasing “by 18 months” in just the last year, with combined cost estimates creeping over $49 billion during the same period.
TRUMP-BACKED AFFORDABLE HOUSING OVERHAUL CLEARS SENATE, WHILE HOUSE GOP RAISES RED FLAGS
Since 2021, the top four defense contractors — Lockheed Martin, Raytheon, General Dynamics and Boeing — have increased spending and spent $89 billion on stock buybacks and dividends. Two-thirds of that came from taxpayer dollars, according to Warren’s office.
“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 in a statement to Fox News Digital. “This bipartisan bill will stop defense contractors from abusing the system at taxpayer expense and put our national security over Wall Street profits.”
The legislation also gives the Pentagon more oversight tools to identify underperforming defense contractors and require those contractors to submit a remediation plan.
GOP SENATOR PUSHES TRUMP’S 10% CREDIT CARD RATE CAP AS PARTY LEADERS PUSH BACK
It also grants the Department of War stronger enforcement powers for contractors that aren’t meeting the agency’s standards, including suspending contract payments, ending eligibility for progress payments or terminating contracts altogether.
Hawley and Warren’s bill would also require the Pentagon to provide public reports on the contractors subject to their law, which contractors were granted waivers from the change in requirements and which companies have violated the rules.
The legislation would also codify an executive order President Donald Trump signed earlier this year that required a similar crackdown on underperforming defense contractors.
“Earlier this year, President Trump led the way with an executive order barring underperforming defense companies from engaging in these practices,” Hawley said. “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.”
<!–>
–>
