May 08, 2025

Warren Demands Army Under Secretary Nominee Divest Stock Holdings in Anduril and Other Defense Contractors

Senator warns Michael Obadal that financial conflicts “will compromise your ability to serve with integrity, raising a cloud of suspicion over your contracting and operational decisions.”

Text of Letter (PDF)

Washington, D.C. — U.S. Senator Elizabeth Warren (D-Mass.) wrote to Mr. Michael Obadal, nominee for Under Secretary of the Army, with concerns about his refusal to divest from major defense contractors. Obadal will face lawmakers at his nomination hearing before the Senate Armed Services Committee on May 8, 2025. 

If confirmed, Obadal will help manage the Army’s operations—consisting of a $186 billion budget, over 100,000 contracts a year, and over one million personnel. Obadal currently serves as a Senior Director at Anduril Industries, which was recently awarded a $22 billion contract to produce high-tech headsets for the Army. Obadal also holds between $250,000 and $500,000 in Anduril stock, which he has refused to divest from ahead of his confirmation. Anduril is also currently eyeing an initial public offering, and the company’s plan of going public would be boosted if it can secure more Pentagon contracts. 

Even after divesting, Warren said Obadal should still recuse from specific-party matters involving Anduril. 

“If you were to participate in a decision about an Anduril contract, your prior employment relationship with the company would lead the public to reasonably question whether you were more motivated to protect the company’s interests than the public interest,” said Senator Warren. 

Obadal also holds stock in several other large defense contractors, including up to $15,000 in each of the following: General Dynamics, Eli Lilly, Thermo Fischer Scientific, and Cummins, Inc. 

“By attempting to serve in this role with conflicts of interest, you risk spending taxpayer dollars on wasteful DoD contracts that enrich wealthy contractors but fail to enhance Americans’ national security,” said Senator Warren. 

To address his conflicts of interest, Senator Warren asked him to make five commitments:

  • Divest his equity in Anduril; 
  • Recuse from any matters involving Anduril; 
  • Divest his equity in stock in other major defense contractors; 
  • Commit not to seek compensation from any company that works with the Army for four years after leaving government service; and 
  • Commit not to lobby the Defense Department for at least four years after leaving office. 

Some DoD appointees have agreed to a cooling-off period before seeking compensation from defense contractors. For example, Dan Caine, Chairman of the Joint Chiefs of Staff, recently committed not to work for major defense contractors after leaving government.

Relatedly, multiple former Biden appointees agreed to post-employment lobbying restrictions, including Defense Secretary Lloyd Austin, IRS Chief Counsel Marjorie Rollinson, and Treasury Assistant Secretary for Investment Security Paul Rosen.

Senator Warren asked Obadal to make these ethics commitments in writing by May 9, 2025. 

Senator Warren has sought to protect servicemembers and national security by pushing defense nominees to resolve their conflicts of interest: 

  • In March 2025, ahead of his confirmation vote, Senator Elizabeth Warren wrote to Deputy Defense Secretary Nominee Stephen Feinberg, urging him to recuse himself from all matters related to Ligado Networks, which has a pending $39 billion lawsuit against the DoD. 
  • In March 2025, Senator Elizabeth Warren wrote to Mr. Emil Michael, nominee for Under Secretary of Defense for Research and Engineering, with concern over his history of inappropriate behavior at work, his attacks on journalists and public accountability, and his ties to technology companies that may seek contracts with the Department of Defense. 
  • In February 2025, ahead of his confirmation hearing before the Senate Armed Services Committee, Senator Elizabeth Warren wrote to Mr. Stephen Feinberg, nominee for Deputy Secretary of the Department of Defense, pressing him to explain his “serious conflicts of interest” and his track record of mismanagement.
  • In January 2025, Senator Elizabeth Warren wrote to Mr. Michael Duffey, nominee for Under Secretary of Defense for Acquisition and Sustainment of the Department of Defense, ahead of his confirmation hearing, with serious concerns about his record, which include violating the law, disregarding Congressional authority, and his involvement in Project 2025. 
  • In January 2025, Senator Elizabeth Warren wrote to Mr. Pete Hegseth, nominee for Secretary of the Department of Defense, regarding his ethics conflicts ahead of the Senate’s consideration of his nomination. Mr. Hegseth’s household’s ownership of stock in several defense contractors and his unwillingness to commit to the same post-employment restrictions he previously advocated for were particularly troubling for a prospective Secretary of Defense.
  • In March 2024, Senator Elizabeth Warren secured ethics commitments from Douglas Schmidt, ahead of his confirmation to be the Director of Operational Test and Evaluation (DOT&E) for the Department of Defense.
  • In June 2023, Senator Elizabeth Warren and representative Andy Kim reintroduced the Department of Defense Ethics and Anti-Corruption Act, to limit the influence of contractors on the military, constrain foreign influence on retired senior military officers, and assert greater transparency over contractors and their interaction with DoD.
  • In July 2021, Senator Elizabeth Warren secured agreements to four-year recusals from former clients’ and employers’ party matters from then-Secretary of the Air Force Frank Kendall and then-USD(R&E) Heidi Shyu.
  • In January 2021, Senator Elizabeth Warren secured a commitment from General Lloyd Austin III, then-nominee for Secretary of Defense, to extend his recusal from Raytheon Technologies for four years and to not seek a position on the board of a defense contractor or become a lobbyist after his government service.

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