Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.
This week's top story
The Trump administration has invoked authorities under the Defense Production Act to address what it describes as systemic constraints in the U.S. munitions industrial base, delegating new powers to Defense Secretary Pete Hegseth to establish voluntary agreements and plans of action with industry.
News & notes
A provision in the Senate's fiscal year 2027 defense authorization bill would, for the first time, require defense companies to restrict stock buybacks and dividend payments if they want to be eligible for Pentagon contracts -- a move that could reshape capital strategies across the defense industrial base.
The Senate Armed Services Committee's version of the fiscal 2027 defense authorization bill would significantly reshape how the Pentagon obtains and controls technical data and software rights, establishing a default presumption of “government-purpose rights,” shifting the burden of proof to contractors seeking intellectual property protections.
The Air Force has selected both Anduril Industries and General Atomics Aeronautical Systems to produce their airframe designs for the first three lots of the emerging Collaborative Combat Aircraft program, the service announced last week.
Lockheed Martin and GM Defense announced the companies have entered into a memorandum of understanding to strengthen the U.S. defense industrial base.
The Defense Department's Office of Strategic Capital has issued a $725 million conditional loan commitment for rare-earth processor Energy Fuels Inc. -- yet another move aimed at accelerating domestic production of critical and rare-earth minerals.
House and Senate lawmakers are urging the Pentagon to take an expansive and aggressive approach in implementing a new statutory ban that will bar the department from contracting with companies that maintain relationships with lobbyists representing Chinese military-linked firms, warning that narrow interpretations could undermine Congress' intent to sever indirect ties between U.S. defense contractors and Beijing's defense-industrial base.
What's happening
Senior Pentagon officials are scheduled to speak on Capitol Hill this week. Meanwhile, House lawmakers are slated to consider the fiscal year 2027 defense spending bill.
For Inside Defense subscribers
Ten Democratic and independent lawmakers are demanding the Pentagon disclose the Golden Dome missile defense project's architecture, mission scope and cost projections before spending additional funds on the initiative.
Senate lawmakers would limit funding availability for the Defense Department acquisition chief's travel by 5% until they get an update on the implementation of a March 2025 memo directing the adoption of special contracting pathways for rapid software procurement, according to a provision in the proposed fiscal year 2027 defense policy bill.
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