Bipartisan Legislation Targets Defense Contractors' Prioritization of Shareholder Interests

A bipartisan bill has been introduced to restrict defense contractors’ share buybacks and executive compensation. The Prioritizing the Warfighter in Defense Contracting Act of 2026 would make the Trump executive order the default unless the Pentagon submits a waiver. The bill would forbid contractors from paying dividends or buying back stock, and instate a $5 million dollar annual cap on executive compensation. The legislation comes amid concerns that defense contractors are prioritizing shareholder interests over national defense. The bill has been cosponsored by Sens. Elizabeth Warren and Josh Hawley.