What does Preamble of Prioritizing the Warfighter in Defense Contracting Act of 2026 do?

This bill requires Department of Defense contractors to prioritize meeting warfighter needs Contractors must prioritize warfighter needs over purchasing their own securities and executive compensation The bill has been introduced to the Senate and referred to the Committee on Armed Services

What does SHORT TITLE. of Prioritizing the Warfighter in Defense Contracting Act of 2026 do?

This bill is formally titled Prioritizing the Warfighter in Defense Contracting Act of 2026.

What does DEFINITIONS. of Prioritizing the Warfighter in Defense Contracting Act of 2026 do?

This section defines terms used throughout the Act. “Appropriate congressional committees” are specified as the Committee on Armed Services and the Committee on Homeland Security and Governmental Affairs of the Senate, and the Committee on Armed Services and the Committee on Oversight and Government Reform of the House of Representatives. A “covered employee” is defined as an employee, executive, or officer. “Equity security” is defined by reference to section 3(a) of the Securities Exchange Act of 1934. “Covered compensation” includes salary, bonuses, performance-based compensation, equity-based compensation, and profits from securities, but excludes routine 401(k) plans and employee stock ownership plans. A “large contractor” is defined as one receiving over $250,000,000 in annual revenue from Department of Defense contracts or licenses in the prior three years. “National securities exchange” is defined as an exchange registered under section 6 of the Securities Exchange Act of 1934. “Short-term financial metrics” are defined as free cash flow, operating cash flow, and earnings per share driven by stock buy-backs.

What does LIMITATIONS ON CONTRACTORS OF DEPARTMENT OF DEFENSE. of Prioritizing the Warfighter in Defense Contracting Act of 2026 do?

This section establishes limitations on contracts entered into by the Secretary of Defense with large contractors. Contractors must agree in writing not to purchase equity securities listed on a national securities exchange or pay dividends. Covered employee compensation must comply with section 3744 of title 10, United States Code, not be linked to short-term financial metrics, and cannot exceed $5,000,000 annually. Contractors are required to develop and implement a plan to prevent prohibited activities and annually certify compliance. The Secretary of Defense may grant waivers to contractors who meet specific metrics related to contract performance, prioritization, investment, and production. The Secretary must establish a formal review process to identify contractors violating the requirements and may take various penalties, including contract termination and referral for prosecution. The Secretary must submit annual and quarterly reports to Congress detailing contractors subject to the requirements, waivers granted, and violations.

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Prioritizing the Warfighter in Defense Contracting Act of 2026

Last updated: 3/25/2026 · Introduced: 3/25/2026

Author: Elizabeth Warren (D-MA)

TL;DR (AI)

This bill requires Department of Defense contractors with over $250,000,000 in annual revenue to prioritize warfighter needs over stock buy-backs and executive compensation.
Contractors are prohibited from purchasing equity securities listed on national exchanges or paying dividends and must limit covered employee compensation to $5,000,000 annually.
The Secretary of Defense must oversee contractor compliance, establish a review process for violations, and report annually to Congress on the implementation of these requirements.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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