Defense Contracting and Oversight

Sens. Josh Hawley, R-Mo., and Elizabeth Warren, D-Mass., have introduced the Prioritizing the Warfighter in Defense Contracting Act of 2026, a bipartisan bill that would restrict stock buybacks, dividends and high executive pay at major defense contractors unless they meet Pentagon performance standards on their contracts. Citing a recent GAO report showing major weapons programs suffered 18‑month average delays and $49 billion in added costs in a single year, the senators argue that large contractors are funneling too much taxpayer money into shareholder returns instead of production capacity and research and development. Warren’s office says the top four contractors — Lockheed Martin, Raytheon, General Dynamics and Boeing — have spent $89 billion on buybacks and dividends since 2021, with an estimated two‑thirds of that funded by U.S. taxpayers through defense contracts. The bill would give the Defense Department broader tools to flag underperforming contractors, demand remediation plans, suspend or terminate contracts, and publicly report which companies are subject to these restrictions or granted waivers. The proposal aligns with President Trump’s stated push to boost weapons output and will intensify an already heated fight in Washington over whether the Pentagon’s industrial base is serving national security needs or shareholder interests during the Iran war buildup.