Prioritizing the Warfighter in Defense Contracting Act of 2026

This bill requires large defense contractors to agree to specific restrictions as a condition for receiving Department of Defense contracts. It prohibits these contractors from buying their own company stock, paying dividends, or linking employee compensation to short-term financial metrics, while also capping annual covered compensation at $5 million per employee. Contractors must demonstrate strong performance on delivery dates, readiness, technical metrics, and cost reporting to qualify for a waiver of these restrictions. The Department of Defense must establish a review process to identify violations, renegotiate existing contracts, and can impose penalties including contract termination or clawing back employee compensation if rules are broken.