The federal government has every right to ensure taxpayer dollars are spent responsibly. It does not have the right to decide how private companies use their own earnings. Yet that’s exactly the line Congress is in danger of crossing.

Section 815 of the Senate’s National Defense Authorization Act would require certain companies doing business with the federal government to obtain approval before paying dividends or repurchasing their own stock. It may sound like a narrow procedural change in corporate governance, but it represents something much bigger: another step toward allowing Washington to influence lawful business decisions that should remain in the hands of businesses and their owners.