Drones as a priority: Trump administration in financing talks with multiple companies

The Wall Street Journal reported today, citing people familiar with the matter, that the Trump administration is in talks with several drone companies to discuss financing partnerships, hoping to boost U.S. drone production capacity and reduce the costs of this increasingly important weapon. Reuters reported that in the defense budget proposal for fiscal year 2027 presented by Trump, drone-led programs are listed as a "presidential priority." Companies reportedly involved in financing discussions include Unusual Machines and Neros, which is backed by Sequoia Capital. The Wall Street Journal noted that private companies and the Department of Defense have been in discussions for months, with the Office of Strategic Capital (OSC), a lending agency established during the Biden administration focused on companies critical to national security supply chains, also participating. Unusual Machines is a drone parts manufacturer where Donald Trump Jr. serves as an advisor; Neros is a startup specializing in autonomous drones. The report added that Performance Drone Works, which has previously won contracts for U.S. Army reconnaissance drones, is also being considered for financing. Some of the proposals under discussion include providing funds through a mix of debt and equity, which could allow the government to acquire ownership stakes in the companies.