On January 7, 2026 President Donald J. Trump issued an executive order directing the Department of War to curb investor payouts from defense contractors until they meet production and delivery targets. The order prohibits stock buy‑backs and dividends while contractors are underperforming, not investing in production capacity, or falling behind on delivery schedules. Within 30 days the Secretary of War must identify such firms, notify them, and, if necessary, require a remediation plan. If the plan is insufficient, the Secretary may use Defense Production Act powers or contract enforcement to accelerate production. Future contracts will include provisions limiting executive compensation tied to short‑term financial metrics and restricting corporate distributions during periods of underperformance.
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https://www.whitehouse.gov/presidential-actions/2026/01/prioritizing-the-warfighter-in-defense-contracting/
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