The U.S. Department of Defense is offering salaries of up to $400,000 a year to recruit Wall Street bankers and finance professionals as it builds a financial management team for a defense manufacturing initiative valued at more than $200 billion.

According to people familiar with the matter, the Pentagon has recently approached vice presidents and directors at several investment banks through executive search firms, offering annual compensation ranging from $300,000 to $400,000—levels comparable to the total pay of mid-level Wall Street bankers.

The hiring campaign supports a newly authorized defense financing program that will provide more than $200 billion in loans, loan guarantees, and direct financing to small and mid-sized manufacturers across the U.S. defense supply chain. The funding is intended to expand production of critical military equipment, including missiles, artillery shells, naval vessels, and fighter aircraft components.

The Defense Department's Chief Financial Officer said the scale and complexity of the program far exceed previous government financing efforts, requiring professionals with expertise in syndicated lending, project finance, and credit analysis—skills that are more commonly found in the private financial sector.

The recruiting effort has drawn criticism from some members of Congress, who argue that offering Wall Street-level salaries could create imbalances within the federal pay system. Defense officials responded that the positions are temporary appointments and that the compensation remains competitive given the demanding nature of similar roles in the private sector.

The Pentagon also plans to establish recruiting offices in Silicon Valley and Boston to attract talent from both the technology and financial industries. Defense officials said strengthening the U.S. defense industrial base is a national security priority and that managing such a large funding program requires top-tier financial expertise.