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S4212119th CongressWALLET

Prioritizing the Warfighter in Defense Contracting Act of 2026

Sponsored By: Senator Warren, Elizabeth [D-MA]

Introduced

Summary

Shifts pay and stock incentives at big defense contractors toward long-term performance. This bill would bar large Department of Defense contractors from buying exchange-listed equity or paying dividends on those shares and would cap certain executive pay tied to short-term financial metrics.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

New pay and stock limits for contractors

If enacted, the bill would treat companies that got more than $250,000,000 a year from DoD as "large contractors." It would define covered pay types and exclude routine 401(k) and employee stock ownership plans. Covered pay tied to short-term financial metrics would be banned and covered pay would be capped at $5,000,000 per person per year. Large contractors would also have to agree not to buy back exchange-listed stock or pay dividends as a condition for DoD contracts. Contractors would need a compliance plan and must certify before a DoD contract and every year after.

Oversight, waivers, and contract penalties

If enacted, the Secretary of Defense would be able to grant waivers when a contractor meets four performance metrics at least 80% of the time. The Secretary would have to notify Congress about waivers and review recipients within a year and annually after. The bill would require a review system within 30 days and renegotiation of existing contracts that need changes. If a violation is found, the contractor would be notified, the allegation would be tracked in CPARS and SAM, and contractors could submit a board-approved remediation plan within 15 days. Contracting officers could suspend payments, end contracts, seek clawbacks, refer for debarment or prosecution, and stop DoD advocacy for sales.

Sponsors & CoSponsors

Sponsor

Warren, Elizabeth [D-MA]

MA • D

Cosponsors

  • Sen. Hawley, Josh [R-MO]

    MO • R

    Sponsored 3/25/2026

  • Sen. Lee, Mike [R-UT]

    UT • R

    Sponsored 5/20/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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