Trump Moves to Grant Executive Powers to Sanction Underperforming Defense Contractors
Former President Donald Trump is reportedly preparing to issue an executive order that would grant the executive branch sweeping new powers to investigate, sanction, and potentially terminate contracts with major weapons manufacturers deemed to be 'underperforming.' According to sources familiar with the draft legislation, the proposed order seeks to bypass traditional procurement hurdles by establishing a 'National Security Performance Review Board.' This board would have the authority to audit defense contractors, scrutinize cost overruns, and assess delays in critical weapons systems like the F-35 Joint Strike Fighter, the Ford-class aircraft carriers, and various missile defense systems. The move stems from growing frustration within Trump's inner circle regarding the ballooning costs and extended timelines of major Pentagon programs. Proponents of the order argue that the current system protects inefficient monopolies and that drastic measures are needed to ensure the United States maintains a technological edge over adversaries like China and Russia. The proposed mechanism would likely utilize the Defense Production Act or other emergency economic powers to target companies that fail to meet specific performance benchmarks. Industry analysts are warning that such an intervention could destabilize the defense industrial base. Major contractors like Lockheed Martin, Raytheon, Northrop Grumman, and General Dynamics have complex supply chains involving thousands of subcontractors across all 50 states. Critics argue that broad executive power to void contracts could lead to massive layoffs, halt production lines for essential equipment currently used by troops in the field, and discourage long-term investment in research and development due to regulatory uncertainty. Furthermore, legal scholars question the constitutionality of an executive order that effectively bypasses the Congressional oversight mandated in the Federal Acquisition Regulation. In response to the news, shares of major defense stocks saw mixed trading, with smaller contractors fearing the targeted scrutiny while larger firms mobilized lobbyists to fight the proposal. The Pentagon has not officially commented on the draft order, but defense officials have privately expressed concern that removing incumbent contractors without a viable replacement ready to step in could leave critical capability gaps. The debate highlights the tension between the desire for efficiency and the stability required for national security. As the 2024 election cycle approaches, the 'America First' agenda is likely to pivot toward a hardline stance on military spending efficiency, setting the stage for a potential showdown between the White House and the defense industry lobby.