To require a review of acquisitions by investment companies involving acquisition of controlling interest of major defense suppliers, and for other purposes.
About This Bill
Committee
Latest Action · June 11, 2026
Referred to the House Committee on Armed Services.
The Critical Defense Ownership Review Act requires the Department of Defense to review and approve any deal where investment firms acquire a 25 percent or greater stake in major defense contractors before the transaction can proceed. Investment firms and defense contractors involved in such deals must notify the Pentagon in advance, and the Defense Department has 30 days to assess national security risks, potential impacts on competition, financial stability concerns, and effects on the defense supply chain before submitting its findings to federal antitrust authorities. The bill also requires the Defense Department's Industrial Base Policy office to conduct a comprehensive review every three years on merger and acquisition activity involving major defense suppliers and report findings to Congress by December 31, 2027, and every three years thereafter. The legislation applies to all proposed mergers, acquisitions, joint ventures, and strategic investments involving defense contractors that occur after the law's enactment. This bill aims to prevent foreign or domestic investment firms from gaining controlling interests in critical defense companies in ways that could threaten national security or disrupt the military supply chain.
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