What Happened
New Provision Sets Up Potential Sea Change In Pentagon Contractor Relations
The Senate Armed Services Committee has approved a bill that includes a provision barring defense contractors from buying back their stock or paying dividends without Defense Department approval. The measure, part of the National Defense Authorization Act, aims to bring discipline to defense contractors and ensure they prioritize government contracts over shareholder returns. According to CNBC, the provision’s inclusion in the committee’s bill increases its chances of becoming law, setting up a potential sea change in Pentagon-contractor relations.