Prioritizing the Warfighter in Defense Contracting

Executive Order 14372 is an executive action signed by President (name not specified in the order) that orders immediate limits on dividends and stock buybacks by defense contractors (Sec. 1). It directs the Secretary of War (Secretary) to identify underperforming contractors within 30 days and require remediation plans (Sec. 3(a)). The Secretary may use enforcement tools, including the Defense Production Act (50 U.S.C. 4501 et seq.) and Federal Acquisition Regulations, to speed production and prioritize military needs (Sec. 4(a), Sec. 4(b)). This matters because it shifts corporate priorities toward faster delivery of military equipment, which can affect jobs, investor returns, and national security preparedness (Secs. 1–4).