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Defense Industry Lobbies Congress to Block Pentagon Buyback Veto Power

7/6/2026

Defense companies and their trade groups are pressing Congress to strip a proposed requirement that would give the Pentagon authority to approve contractor stock buybacks before they proceed.

The campaign is gaining intensity, marking an organized industry effort to keep capital return decisions out of a national security approval framework.

The Provision at Issue The measure being contested would write into law a requirement that defense contractors obtain Pentagon approval before executing share repurchase programs.

That would shift sign-off authority from corporate boards — where buyback decisions currently reside — to a government agency.

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