The Association of Military Banks of America (AMBA) joined more than 40 national trade associations and business organizations in urging the Senate Armed Services Committee to remove Section 815 from the Fiscal Year 2027 National Defense Authorization Act (NDAA). In a joint letter to Senate leadership, the coalition expressed concern that the provision would prohibit Department of War contractors from repurchasing stock or issuing dividends while performing under federal contracts, unless granted a government waiver. The organizations argue that the proposal would represent an unprecedented expansion of federal involvement in lawful corporate governance and financial management decisions.
The coalition further warned that Section 815 could discourage private-sector participation in the defense industrial base at a time when innovation and investment are critical to national security. According to the letter, the restrictions could negatively impact millions of Americans who rely on dividends and long-term investment returns through retirement accounts while also creating unnecessary barriers for companies seeking to support defense initiatives. AMBA and the other signatories emphasized that federal procurement policy should remain focused on a contractor’s ability to successfully perform its obligations, rather than on corporate financial decisions unrelated to contract performance,and urged Congress to strike the provision from the final NDAA.
For AMBA and its members, the proposed legislative text raises legitimate concerns as to whether the legislation would unintentionally discourage regulated financial institutions from providing essential banking and financial services to the Department of War and the military community. Congress should ensure that legislation intended to strengthen the defense industrial base does not unintentionally discourage our member banks from providing essential services that our military community has come to rely on.
Click here to read the joint letter.