Senators Elizabeth Warren and Mike Lee are urging War Secretary Pete Hegseth to make President Trump’s restrictions on stock buybacks for defense contractors permanent. The bipartisan duo argues that the policy is already changing how major defense companies spend their money and bolstering national security and military readiness.
Background
The Pentagon is handing companies billions of taxpayer dollars, and Congress and the Administration must work together to ensure they fulfill their contractual obligations and enhance national security. The senators are asking Hegseth to support their Prioritizing the Warfighter in Defense Contracting Act, which would codify central provisions included in Trump’s January executive order.
Staff for Warren and Lee reviewed recent earnings calls and financial reports from the top 20 publicly traded U.S. defense contractors. The offices found that the companies cut buybacks and dividends by $2 billion in the first quarter of 2026, compared with the same period a year earlier, while capital spending rose by $1.2 billion.
Original reporting: Fox News (HLL/CB) — read the source article.
