Business groups oppose Senate defense contractor buyback limits

Business groups are pressing the Senate to remove a provision from the National Defense Authorization Act that would restrict Pentagon contractors from buying back stock or paying dividends without Defense Department approval. The U.S. Chamber of Commerce and 40 other organizations said the measure, known as Section 815, would give the government too much influence over routine corporate capital decisions and could affect a wide range of companies that work with the Pentagon, not just major weapons makers. The provision was backed by Sen. Elizabeth Warren and included in the Senate Armed Services Committee version of the defense bill. Supporters say it is meant to push contractors to invest more in defense production and limit payouts when companies underperform. Some senators, including Sen. Mike Rounds, have said the language may go too far. The Senate is expected to begin considering the bill this week, but removing the provision on the floor would be difficult. If the Senate keeps it, the measure would still need to be reconciled with the House version of the NDAA, which does not include the restriction.