The White House pushed a $620 million Pentagon loan to a company Don Jr.'s firm had just invested in

In August 2025, 1789 Capital, the venture firm where Donald Trump Jr. is a partner, took an undisclosed stake in Vulcan Elements, a North Carolina maker of rare-earth magnets. In November the Pentagon's Office of Strategic Capital announced a $620 million loan to Vulcan, plus $80 million for a partner company. Vulcan also received about $10 million in direct Pentagon contracts and a $50 million equity investment from the Commerce Department.

ProPublica's Robert Faturechi reported that the push came directly from Peter Navarro, the White House senior counselor for trade and manufacturing, and that Pentagon staff were told the call came from the White House and the deal had to get done. NPR later reported the same White House request. In June 2026, Sen. Elizabeth Warren and Rep. Jason Crow wrote to the administration citing the unusually expedited timeline and asking whether Pentagon decisions were being steered to benefit the Trump family.

Vulcan is not the only one. Warren and Crow also pointed to PsiQuantum, a quantum-chip startup backed by 1789 Capital, which won a $10.8 million Pentagon contract and a $100 million Commerce Department equity stake, and to drone maker Unusual Machines, where Trump Jr. is a shareholder and advisory board member. A May 2026 letter from House Oversight Democrats to the Pentagon inspector general counted more than $725 million in loans, grants and awards to such companies since the 2025 inauguration.