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Pentagon Weighs Ending Speedy Payments to Contractors Started for the Pandemic

  • Contractors got $6.7 billion in expedited funds through 2021
  • Analyst questions need for fast funds amid share buybacks
Pentagon building in Washington, D.C.
Pentagon building in Washington, D.C.

Source: AFP/Getty Images

The Pentagon is reviewing whether to end increased progress payments to defense contractors, a policy started two years ago to buffer the impact of Covid-19 on subcontractors. Under the program, $6.7 billion was expedited through December.

A combined $5.3 billion has been paid to the biggest contractors: Lockheed Martin Corp., Boeing Co., Raytheon Technologies Corp., Northrop Grumman Corp. and General Dynamics Corp., Defense Department spokesperson Jessica Maxwell said in a statement.