Steve Feinberg, the former private‑equity chief who now serves as the Pentagon’s number‑two, is lobbying Congress to approve the Trump administration’s $1.5 trillion defense budget for the United States. The request would fund a modernization effort aimed at fixing chronic cost overruns and schedule delays that have plagued major programs. Feinberg frames the proposal as the “sell” of his career, shifting from corporate turnarounds to a megaproject.

At a National War College gathering, Feinberg warned defense suppliers that only adaptable firms would thrive under the new funding. He singled out Lockheed Martin and Northrop Grumman, urging them to align with his “carrot‑and‑stick” strategy or risk being edged out. The message aims to tighten discipline across a supply chain long criticized for inefficiency for future contracts.

Investors watch closely as the budget could reshape billions in contracts, boosting earnings for firms that win new work while squeezing out laggards. Feinberg’s aggressive stance signals a shift toward performance‑based deals, a model that may attract private‑equity capital to defense assets in the defense sector. The outcome will directly affect Wall Street valuations of the top aerospace conglomerates.