Pentagon to Increase Progress Payments to Defense Firms

Pentagon is increaseing interim payments to defense contractors to give them a financial boost as the coronavirus pandemic weakens the broader economy.

The payments to large contractors will increase from 80% to 90%, while payments to small contractors will increase from 90% to 95%.

Pentagon asserts that workers in the defense industry are deemed critical, while it is not a federal mandate, it could be used by state and local governments to keep working if necessary.

Beneficiaries includes Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC) and General Dynamics (NYSE:GD).

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