The CHRO Association sent a letter to Senators Elizabeth Warren (D-MA) and Josh Hawley (R-MO) expressing strong concerns with their proposal, S. 4212, the Prioritizing the Warfighter in Defense Contracting Act of 2026.
The bill would codify Executive Order 14372, issued on January 7, 2026, which aimed to restrict stock buybacks and executive compensation for defense contractors.
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The bill proposes to establish sweeping financial restrictions on defense contractors unless the Department of Defense determines they have met at least 80% of specified schedule, performance, and reporting benchmarks.
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Contractors that do not meet the thresholds could face restrictions on stock buybacks, dividends, and executive compensation (including a proposed $5 million annual cap on total compensation absent a waiver).
Read our full letter here.
Looking ahead: To date, S. 4212 has no co-sponsors. While we do not expect the bill to advance in the near term, it could reemerge during a lame-duck session—particularly if election results shift control in one or both chambers. In that scenario, Republican leadership could face pressure from the President to move the proposal before year-end.
