For the better part of a century, there was one thing even the U.S. government would not do to pad the profits of defense contractors.

Now, more than 80 years of precedent may be coming to an end.

On Thursday, lawmakers in the House approved a “pilot program” in the pending Pentagon budget bill that could eventually open the door to sending billions to big contractors, while providing what critics say would be little benefit to the military.

The provision, which appeared in the budget bill after a closed-door session overseen by top lawmakers, would allow contractors to claim reimbursement for the interest they pay on debt they take on to build weapons and other gadgets for the armed services.

“The fact that we are even exploring this question is a little crazy in terms of financial risk.”

The technical-sounding change has such serious implications for the budget that the Pentagon itself warned against it two years ago.

One big defense contractor alone, Lockheed Martin, reported having more than $17.8 billion in outstanding interest payments last year, said Julia Gledhill, an analyst at the nonprofit Stimson Center.

“The fact that we are even exploring this question is a little crazy in terms of financial risk for the government,” Gledhill said.

Gledhill said even some Capitol Hill staffers were “scandalized” to see the provision in the final bill, which will likely be approved by the Senate next week.

Pilot to Where?

For most companies, paying interest on a loan they take out from the bank is a cost of doing business. The pilot program buried in the budget bill, however, is one of many ways in which the federal government would give defense contractors special treatment.

Contractors can already receive reimbursements from the Defense Department........

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