Business groups urge Senate to drop NDAA provision restricting buybacks and dividends for Pentagon contractors

According to CNBC, the U.S. Chamber of Commerce and 40 other business groups sent a letter Tuesday urging Senate leaders to strip Section 815 from the National Defense Authorization Act, a provision that would restrict Pentagon contractors from executing stock buybacks and paying dividends without Defense Department approval. The measure, backed by Sen. Elizabeth Warren and included in the Senate Armed Services Committee-approved bill, would bar the Pentagon from entering into contracts unless a contractor agrees in writing not to purchase listed equity securities or pay dividends or other capital distributions unless it receives a waiver tied to a “qualifying defense investment plan,” with the restriction set to take effect June 15, 2027. Sen. Mike Rounds said the provision goes farther than he is comfortable with, while supporters say it targets underperforming contractors and aligns with President Donald Trump’s January executive order; the House version does not include the provision, setting up negotiations between the chambers.