"Prioritizing the Warfighter in Defense Contracting"
Executive Order signed by President Donald Trump on January 7, 2026
EXECUTIVE ORDERRECENT ACTION
1/8/20261 min read
President Trump signed this order after finding that defense contractors have been prioritizing investor returns instead of improving defense. He stated that he is dedicated to ensuring the US military is the strongest in the world and many of the traditional defense contractors are inhibiting that.
With this order, contractors are prohibited from issuing dividends or conducting stock buy-backs until they improve products and reduce production times. Contractors will no longer be allowed to place investor profits over the United States' capabilities in defense and war.
The Secretary of War will, within 30 days and on a regular basis after, identify major defense contractors that underperform on contracts, do not prioritize US Government contracts, or do not have efficient production speeds, and during times of insufficiency, conducted stock buy-back or issued dividends. If contractors are found to not be in compliance with this order, the Secretary of War will work with them and ensure compliance.
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