Related Stories
Lawmakers Pave the Way to Billions in Handouts for Weapons Makers That the Pentagon Itself Opposed
Key Excerpts from Article on Website of The Intercept
Posted: January 5th, 2026
https://theintercept.com/2025/12/12/pentagon-defense-contrac...
On Thursday, lawmakers in the House approved a “pilot program” in the pending Pentagon budget bill that could eventually open the door to sending billions to big contractors, while providing what critics say would be little benefit to the military. The provision, which appeared in the budget bill after a closed-door session overseen by top lawmakers, would allow contractors to claim reimbursement for the interest they pay on debt they take on to build weapons and other gadgets for the armed services. One big defense contractor alone, Lockheed Martin, reported having more than $17.8 billion in outstanding interest payments last year, said Julia Gledhill, an analyst at the nonprofit Stimson Center. “The fact that we are even exploring this question is a little crazy in terms of financial risk for the government,” Gledhill said. Gledhill said even some Capitol Hill staffers were “scandalized” to see the provision in the final bill, which will likely be approved by the Senate. The switch to covering financing costs seems to be in line with a larger push this year to shake up the defense industry. The Pentagon itself was dubious in a 2023 study conducted by the Office of the Under Secretary of Defense for Acquisition and Sustainment. The Pentagon found that policy change might even supercharge the phenomenon of big defense contractors using taxpayer dollars for stock buybacks instead of research and development.
Note: Read our concise summaries of news articles on government corruption.
Related Stories
Latest News
Key News Articles from Years Past
