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Pentagon seeks contractor-funded factory model while awarding $191M in grants

Pentagon proposes a model shifting factory expansion costs to defense contractors even as it awards $191 million in taxpayer-financed grants for those expansions.

Published May 19, 2026, 10:40 AM EDT | WFMZZ

The Pentagon is asking Congress to approve a new approach that would expect defense contractors to finance their own factory expansions. At the same time, the department is distributing $191 million in taxpayer-funded grants to expand those same facilities. Critics may see a contradiction between the policy shift and the ongoing grant awards.