The Trump administration is reportedly in discussions to provide funding to several drone companies, including Unusual Machines and Sequoia Capital-backed Neros, as part of a broader push to achieve drone dominance under President Trump's proposed $1.5 trillion defense budget for fiscal year 2027.
According to the Wall Street Journal, citing sources familiar with the matter, these talks have been ongoing for months between private firms and the Pentagon, involving the Office of Strategic Capital – a Biden-era lending unit focused on national security supply chains. Unusual Machines, a drone components maker, counts Donald Trump Jr. as an adviser, while Neros specializes in autonomous drones. Unusual Machines is also involved in another deal backed by Trump Jr. and his brother Eric with a Chinese drone maker.
Pete Hegseth's Department of Defense has requested over $54 billion for the Defense Autonomous Warfare Group, the department's drone arm, a significant increase from a previous budget of $225 million. Performance Drone Works, a supplier of reconnaissance drones to the U.S. Army, is also under consideration. Funding proposals include a mix of debt and equity, potentially giving the government ownership stakes.
Reuters could not immediately verify the report. The White House, the Pentagon, and the companies involved did not immediately respond to requests for comment.
