An annual defense policy bill the House plans to consider this week ditches a provision that would’ve authorized the Pentagon to reimburse defense contractors for interest costs incurred financing facilities upgrades.
It’s a setback for companies large and small seeking a major financial benefit to expand their current defense-related infrastructure to win Pentagon contracts without taking on the extra interest expense.
Instead, the final agreement authorizes a pilot program through 2027 to evaluate “the feasibility, risks, and benefits of authorizing the financing costs” and report on the results by February 2028, according to the joint explanatory statement accompanying the bill. ...