# Congress Weighs Defense Contractor Buyback Limits

The Senate’s FY 2027 National Defense Authorization Act includes Section 815, which would generally restrict the Department of Defense from contracting with firms that conduct stock buybacks, pay dividends, or make other capital distributions. The provision would allow a waiver tied to a qualifying investment plan approved by the defense secretary. Seven unions are urging Congress to retain it, while business groups oppose it; the House version omits the restriction, leaving the final language unresolved as Congress develops the NDAA. No solicitation or contract award is involved, but the outcome could affect defense contractors’ eligibility for future DoD work and their capital-allocation plans.

- Contractors should assess how the proposed restriction and waiver could affect planned distributions, investment plans, and eligibility for DoD contracts if Section 815 is enacted.
- Because the Senate and House versions differ, the conference outcome will determine whether the restriction applies and in what form. Companies should follow the NDAA’s final language as Congress negotiates the bill.
- The provision could influence financial planning across the defense supplier base; labor groups support redirecting capital toward facilities and workers, while business groups warn of effects on suppliers and corporate decisions.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Policy
**Published:** October 09, 2026

### Government Entities
- U.S. Congress (Congress)
- U.S. Senate (Senate)
- U.S. Department of Defense (DoD)

### Vendors
- Lockheed Martin (defense contractor)
- Boeing (defense contractor)
- Woodward (defense contractor)
- General Dynamics (defense contractor)
- Textron (defense contractor)

### Key Quotes
> The working class makes the defense industry run, but instead of investing in our national and economic security, companies like Lockheed Martin, Boeing, Woodward, and dozens more spend taxpayer dollars on Wall Street payoffs to enrich the billionaires.
> — Shawn Fain, President of the United Auto Workers

### Sources
- [Major Unions and Business Groups Clash Over Defense Contractor Stock Buybacks - The Washington Sun](https://www.notus.org/defense/unions-business-groups-clash-defense-contractor-stock-buybacks) - notus.org
- [UAW Leads 6 Unions in Call for Ban on Stock Buybacks and Dividends at US Defense Contractors - UAW | United Automobile, Aerospace and Agricultural Implement Workers of America](https://uaw.org/uaw-leads-6-unions-in-call-for-ban-on-stock-buybacks-and-dividends-at-us-defense-contractors) - UAW
- [
        Unions back Senate push to limit stock buybacks for defense contractors - Federal News Network](https://federalnewsnetwork.com/unions/2026/10/unions-back-senate-push-to-limit-stock-buybacks-for-defense-contractors) - Federal News Network