Defense Secretary Pete Hegseth flew into Fort Worth on Monday with a blunt warning for America’s weapons makers: hit your targets or forfeit the coming $500 billion surge in Pentagon cash.
At a Glance
- Hegseth told Lockheed workers the White House will tie new funds to on-time, on-budget delivery.
- President Trump wants military spending to jump from $1 trillion to $1.5 trillion next cycle.
- A new executive order bans stock buybacks and investor payouts for firms that miss milestones.
- Why it matters: North Texas hosts thousands of defense jobs at Lockheed, Boeing, Raytheon and others-compliance could decide which plants expand and which shrink.
Speaking inside Lockheed Martin’s mile-long assembly plant, Hegseth said the president’s upcoming order will strip rewards from under-performing contractors and channel savings into faster weapons output.
“We live in a realistic world where if you want American strength, you better have American manufacturing,” Hegseth told employees beneath an unfinished F-35 fighter.
The F-35 program-America’s costliest weapons effort-has overrun budgets and timelines for years. Hegseth vowed the new rules will end that cycle by:
- Speeding up production lines
- Prohibiting buybacks or dividends until benchmarks are met
- Publishing a public scorecard within 30 days showing which firms comply
Lockheed recently used its own capital to expand a missile plant, a move Hegseth hailed as the model others must follow. Company executives pledged to meet the tougher terms.
“We have the utmost commitment on your behalf to continue to bring it, to provide for the very best kit, very best product, very best service on behalf of our war fighter,” said Greg Ulmer, president of Lockheed Martin Aeronautics.
Tarrant County hosts major operations for:
- Boeing
- General Dynamics
- Northrop Grumman
- Raytheon
It remains unknown how each will adjust to the tighter rules. Hegseth said he may also seek authority to cap executive pay at firms that lag schedule or budget.
“Where your leadership knows that it’s not just about Wall Street and dividends and stock buybacks. It’s about the warriors and what we can deliver,” Hegseth added.
A 2023 Pentagon review found major contractors from 2010-2019 devoted more cash to shareholder payouts than to new factories or equipment. The White House aims to reverse that trend as it embarks on the largest military buildup in years.
