February 11, 2026 at 6:42 PM
Pentagon Is Making A Naughty Or Nice List Of Defense Contractors
Beset by delays, cost overruns and long waiting lists for critical weapons, the Pentagon says it is changing the way it will be doing business. The post Pentagon Is Making A Naughty Or Nice List Of Defense Contractors...
The Pentagon, which buys and sells hundreds of billions of dollars worth of weapons every year, is changing how it conducts business. And this time, such a claim being made does seem different than many false starts in the past. The changes come amid a backdrop of growing threats and depleted arsenals, which have magnified the chronic issues of delays and cost overruns for a lot of military hardware, and long waiting lists for foreign customers.
The War Department’s revamping of how it procures and transfers weapons follows executive orders signed by President Donald Trump, who has frequently expressed his displeasure with the defense industry’s long timetables and lack of risk taking without the department footing the bill. BREAKING: President Trump says executives of US defense contractors will no longer be allowed to make more than $5 million unless they build "new and modern production plants."Trump also says he is banning dividends and stock buybacks for defense companies until these problems… pic.twitter.com/0pDiWBZbXz— The Kobeissi Letter (@KobeissiLetter) January 7, 2026 In January, Trump imposed new restrictions on executive compensation and threatened to cancel contracts with RTX [Raytheon] if it did not step up and invest in “plants and equipment.” “I have been informed by the Department of War that Defense Contractor, Raytheon, has been the least responsive to the needs of the Department of War, the slowest in increasing their volume, and the most aggressive spending on their Shareholders rather than the needs and demands of the United States Military,” Trump said in a separate post on Truth Social. U.S.