Federal spending watchdog group Taxpayers for Common Sense urged NDAA negotiators to cement provisions that would limit defense contractors from buying back their own stock or issuing shareholder dividends.

The provision, based on legislation from Sens. Elizabeth Warren and Josh Hawley, was adopted by SASC during its deliberations on the defense bill. It aims to codify parts of Trump’s executive order targeting financial rewards by companies the administration argues aren’t delivering needed capabilities to the Pentagon on time and on budget.

In a letter sent Thursday to the chairs and ranking Democrats of HASC and SASC, Taxpayers for Common Sense President Steve Ellis argued the provision will “ensure that the defense industrial base is pulling its own weight.”

“While the executive order was an important step, it is not sufficient to compel contractors to adequately invest in industrial capacity,” he wrote. “Stock buybacks have largely paused since the executive order, but that has been a voluntary measure by an industry hoping to avoid substantive legal requirements, and shareholder dividends have continued.”

Industry target: The provision has drawn opposition from a wide array of business groups, who contend the measure will discourage contracting with the Pentagon. Ellis argued “the notion that firms would stop seeking business with the Pentagon is simply not based in reality.”

“Moreover, as long as contractors develop a plan to adequately invest in industrial capacity, investments that will ultimately strengthen their businesses, they will also be able to continue reaping the benefits associated with stock buybacks and shareholder dividends,” he wrote.