The Trump administration has been conducting discussions about possible financial support for a handful of U.S. drone companies, including Unusual Machines and Neros, according to people familiar with the matter who spoke to the Wall Street Journal.
Those talks come as President Trump has highlighted drone dominance as a "presidential priority" in his $1.5 trillion defense budget request for fiscal year 2027. The conversations have stretched over several months and have included both private sector firms and Pentagon representatives.
Sources told the Journal that the engagements have involved the Office of Strategic Capital, a lending unit created during the Biden administration with a mandate to back companies considered critical to national security supply chains. The Office of Strategic Capital has been part of the dialogue between defense officials and private firms exploring financing arrangements.
Unusual Machines, a maker of drone components that lists Donald Trump Jr. as an adviser, and Neros, a startup focused on autonomous drones, are among the companies reported to be under consideration for government funding. The Journal also named Performance Drone Works - which previously secured a contract to supply the U.S. Army with reconnaissance drones - as a possible candidate for support.
According to the report, some of the proposals discussed would structure funding as a combination of debt and equity, potentially granting the government ownership stakes in participating companies. Reuters could not immediately verify the Journal's account, and representatives from the White House, the Pentagon and the companies named did not immediately respond to requests for comment.
Context and scope of discussions
- The discussions are described as months-long and involve both government and private-sector participants.
- The Office of Strategic Capital, a federal lending arm focused on national security supply chains, has been included in the talks.
- Proposals reportedly under consideration would mix debt and equity financing, which could result in government ownership positions.
Verification and responses
At the time of reporting, Reuters stated it could not immediately confirm the Journal's report. The White House, the Pentagon and the companies named did not provide immediate comments in response to inquiries.