On January 7, 2026, President Trump issued a new executive order, “Prioritizing the Warfighter in Defense Contracting” (the “EO”), which states that “[a]fter years of misplaced priorities, traditional defense contractors have been incentivized to prioritize investor returns over the Nation’s warfighters.” The EO aims to realign these priorities by restricting defense contractors deemed “underperforming” from engaging in stock buybacks and paying shareholder dividends “at the expense of accelerated procurement and increased production capacity.” It also directs rapid review, remediation, and enforcement measures it hopes will accelerate production and prioritize warfighter needs. Below we provide an overview of the EO, and outline key takeaways, and enforcement risks for potentially affected contractors.