What does Preamble of Prioritizing Warfighters in Defense Contracting Act do?

This bill aims to limit stock buybacks, shareholder dividends, and executive compensation. The restrictions apply to certain underperforming contractors. The Secretary of Defense is responsible for determining which contractors are considered underperforming.

What does SHORT TITLE. of Prioritizing Warfighters in Defense Contracting Act do?

This bill is formally titled the Prioritizing Warfighters in Defense Contracting Act.

What does LIMITATIONS ON STOCK BUYBACKS, SHAREHOLDER DIVIDENDS, AND of Prioritizing Warfighters in Defense Contracting Act do?

This section limits stock buybacks, shareholder dividends, and executive compensation for contractors. The Secretary of Defense can include these limitations in contracts with an expected value of $100,000,000 or more. Contractors are prohibited from these actions if they fail to perform the contract on time and on budget, or at sufficient production speed or capacity. Failure to invest in new production methodologies or maintain equipment can trigger these limitations. Executive compensation is capped at $5,000,000 annually if the contractor takes a prohibited action. This section applies to contracts entered into on or after the enactment date of this Act.

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Prioritizing Warfighters in Defense Contracting Act

Last updated: 6/9/2026 · Introduced: 6/9/2026

Author: Tim Burchett (R-TN)

TL;DR (AI)

This bill restricts stock buybacks, shareholder dividends, and executive compensation for defense contractors deemed underperforming by the Secretary of Defense.
The Secretary of Defense can impose these limitations in contracts valued at $100,000,000 or more, triggered by factors like missed deadlines, budget overruns, or inadequate production.
If a contractor violates these restrictions, executive compensation is capped at $5,000,000 annually.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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