Executive Order 14372: Prioritizing the Warfighter in Defense Contracting

Executive Order 14372 directs the Department of War to prioritize warfighter readiness in defense contracting by restricting stock buy-backs and dividend payments by underperforming defense contractors. The Order requires the Secretary to identify contractors failing to meet performance, investment, or production standards and to enforce remediation plans, contract provisions, and potential Defense Production Act remedies. Future contracts must link executive compensation to production metrics and on-time delivery. The policy seeks to accelerate procurement, expand production capacity, and strengthen the defense industrial base.