finance
Industry groups urge House panel to reject defense contractor buyback restriction
Trade associations asked the House Rules Committee to drop a proposed amendment that would bar the Pentagon from contracting with firms that repurchase their own shares. The measure is one of more than 1,300 amendments filed ahead of this week's NDAA vote.
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Industry groups sent a letter to the House Rules Committee urging rejection of an amendment that would prevent the Pentagon from awarding contracts to companies that buy back their own stock. The letter, signed by the Chamber of Commerce, the Aerospace Industries Association and Business Roundtable, said the restriction would expand federal oversight of lawful corporate decisions.
It argued that requiring a waiver before contractors could pay dividends or repurchase shares sets a precedent for government involvement in capital allocation.
Amendment details The amendment, offered by Reps.
, would bar the Pentagon from entering contracts unless the contractor agrees not to purchase its own shares. A waiver could be granted at the Pentagon's discretion. A similar provision already appears in the Senate version of the National Defense Authorization Act for fiscal 2027.
Both versions seek to codify an earlier executive order on the same topic.
Industry response The groups warned that the requirement could discourage non-traditional firms from entering the defense sector. They said the rule would send the opposite signal from the one policymakers intend when trying to attract new suppliers. The House Rules Committee was scheduled to review the amendment Monday night ahead of a full House vote on the defense bill later this week.
