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HR 9215

Prioritizing Warfighters in Defense Contracting Act

119th Congress Introduced by Tim Burchett

The bill restricts large defense contractors from stock buybacks, dividends, and executive pay above $5M if they miss on-time, on-budget production for contracts of $100M+encouragi

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 9215

Overview

HR 9215, the Prioritizing Warfighters in Defense Contracting Act, introduces new contracting terms aimed at limiting certain financial practices by defense contractors deemed underperforming by the Secretary of Defense. The bill targets stock buybacks, shareholder dividends, and executive compensation for contractors meeting specific contract value and performance conditions.

Purpose and intent

  • Redirect incentives within defense contracting to prioritize timely, on-budget, and capable production.
  • Use contract performance as a lever to restrict financial practices that could be seen as financially rewarding while failing to deliver contracted results.
  • Establish a threshold and criteria for when these provisions would apply to contractors.

Key provisions

  • Scope and trigger:
    • Applies to contracts with an expected value of $100,000,000 or more.
    • Provisions become applicable to contracts entered into on or after the date of enactment.
  • Prohibitions if action described in subsection (b) occurs:
    • Prohibit stock buybacks by the contractor.
    • Prohibit issuing dividends to shareholders.
    • Prohibit paying executive total annual compensation in excess of $5,000,000 (including the CEO).
  • Actions that trigger the prohibitions (subsection (b)):
    1. The contractor fails to perform the contract on time and on budget, including failures due to inadequate investment in new or modernized production methods.
    2. The contractor performs the contract at insufficient production speed or capacity, including failures to maintain required equipment for performance.
  • Applicability:
    • The restrictions apply to new contracts entered into after the enactment date.
  • Enforcement mechanism:
    • The Secretary of Defense would have the authority to include these terms in eligible contracts and enforce the prohibitions if the specified performance failures occur.

Affected parties and impact

  • Primary: Defense contractors with contracts valued at or above $100 million.
  • Consequences for affected contractors:
    • Restriction on financial practices (no stock buybacks or shareholder dividends).
    • Cap on executive compensation above $5 million per year.
    • Potential operational reforms to meet performance benchmarks to avoid restrictions.
  • Potential beneficiaries or stakeholders:
    • U.S. military personnel and warfighters, indirectly, through potential improvements in production timeliness, reliability, and modernization.
    • Defense budget oversight and accountability stakeholders who favor tying compensation and shareholder returns to performance.

Procedural and timeline aspects

  • Introduction and referral: Introduced June 9, 2026, in the House by Rep. Tim Burchett and referred to the Committee on Armed Services.
  • The bill specifies that its provisions would take effect for contracts entered into on or after enactment.
  • There is no text detailing waivers, appeal processes, or sunset provisions in the provided summary.

Notes

  • The bill emphasizes performance-based triggers linked to production speed, capacity, and adherence to schedule and budget.
  • It sets a relatively high executive compensation cap ($5,000,000 annually) for affected contractors, apart from other compensation considerations.

Compiled from official sources — confirm details with the bill’s official record.

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