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EO 14372
Prioritizing the Warfighter in Defense Contracting
ActiveSigned January 7, 2026
ProcurementGovernmental – Government ContractsCorporateCommercial FinanceWhite Collar Defense and InvestigationsAerospace, Defense & Government Services
Summary
This EO declares a policy to accelerate defense procurement by curbing major defense contractors’ stock buybacks and dividends when they are underperforming, failing to invest in production capacity, or not prioritizing U.S. Government contracts. It directs the Secretary of War to identify such contractors, require remediation plans, and—if issues persist—use available legal and contractual enforcement tools and add future contract clauses restricting buybacks/dividends and tying executive compensation to on-time delivery and increased production rather than short-term financial metrics.
Agencies Impacted
- DoD
Timeline
Immediate, 30, 60.
Deliverable
None.
Legal Challenges
No known legal challenges.