PolicyCurrent

EO: Prioritizing the Warfighter in Defense Contracting (Jan 2026)

Summary

Executive Order 14372, "Prioritizing the Warfighter in Defense Contracting" (January 7, 2026). It sets a policy of accelerating defense procurement and revitalizing the defense industrial base, directs the Secretary of War to identify underperforming defense contractors that have conducted stock buy-backs or corporate distributions, establishes notice/remediation and enforcement processes (including under the Defense Production Act and FAR/DFARS mechanisms), and requires future defense contracts to bar buy-backs and distributions during underperformance and to tie executive compensation to delivery and production rather than short-term financial metrics. Concerns defense contracting broadly; the text does not specifically address other transactions.

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