[Congressional Record Volume 169, Number 80 (Thursday, May 11, 2023)]
[House]
[Page H2297]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       STOCK BUYBACKS IN DEFENSE

  (Mr. DELUZIO asked and was given permission to address the House for 
1 minute.)
  Mr. DELUZIO. Mr. Speaker, the defense industrial base is dominated by 
a handful of massive corporations that have gobbled up competitors. 
These five companies have a lot of power and responsibility to supply 
our military. But what are they doing with that power? Are they 
investing in innovation?
  They are enriching themselves with stock buybacks and shareholder 
dividends, fueled by public money, while shrinking their investments to 
innovation.
  The Pentagon has reported that over the past decade, research and 
development is down, but corporate payouts for prime contractors are 
up.
  Meanwhile, they are lobbying Congress for more cash every year.
  Top brass warn that late, over-budget defense orders threaten our 
readiness. National security shouldn't be subject to the whims of Wall 
Street or crazy ideas of shareholder primacy. Public money shouldn't 
bankroll stock buybacks.
  It doesn't have to be this way. We should, once again, ban buybacks. 
They used to be illegal, and should be again.
  We need smarter industrial policy to break up these monopolies so we 
have got real competition in the defense industry.

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