Overview
- The Senate Armed Services Committee approved Section 815 as part of the FY2027 NDAA by an 18-9 vote on June 15, 2026, which would bar the Pentagon from contracting with firms that carry out stock buybacks or pay dividends unless they secure a waiver.
- The waiver would be granted only if a company submits a qualifying defense investment plan to the Defense Secretary, and the restriction is set to take effect on June 15, 2027 if it becomes law.
- On Tuesday, July 14, 2026, the U.S. Chamber of Commerce and about 40 trade and business groups sent a letter urging Senate leaders to remove Section 815, arguing it would give the federal government unprecedented control over routine corporate financial decisions.
- Supporters say the rule would force contractors to reinvest in production and curb pay-for-shareholder practices that hurt military readiness, while some Republicans and industry groups warn it is broader and stricter than President Trump’s January executive order.
- The provision’s fate is uncertain because the full Senate must pass the NDAA and the House bill lacks the restriction, meaning floor amendments or House-Senate reconciliation could alter or remove Section 815 before any final law is enacted.