Commerce Secretary Howard Lutnick said the Defense Department is considering taking an equity stake in defense contractors that already receive significant business from the Pentagon.

“There’s a monstrous discussion about defense. I mean, Lockheed Martin makes 97% of their revenue from the U.S. government. They are, basically, an arm of the U.S. government,” Lutnick said on CNBC’s Squawk Box on Tuesday. “But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense.”