A group of Democratic lawmakers has demanded answers after a startup linked to Donald Trump Jr. received a $620 million loan from the Department of Defense and a $50 million investment from the Department of Commerce. In a letter to White House Chief of Staff Susie Wiles, the five lawmakers cited a ProPublica report that raised concerns about potential corruption.
The startup, Vulcan Elements, a rare-earth magnet company, is backed by 1789 Capital, a venture capital firm where Trump Jr. became a partner in 2024. The lawmakers questioned whether Trump adviser Peter Navarro helped secure the loan, noting that ProPublica reported Navarro was the only top Trump aide to intervene with the Pentagon in favour of the company.
“If this report is accurate, it reveals a staggering level of corruption and influence peddling that superseded this process, enriching the President’s son at the expense of U.S. national security and taxpayer dollars,” the Democrats wrote. They also demanded explanations on whether President Trump was aware of Navarro’s actions and whether other officials contacted the Pentagon.
The White House defended the administration, stating that all actions are in the best interest of the American people. A spokesperson said that Navarro and officials at the “Department of War” are working to secure critical mineral supply chains “at Trump Speed.” Both the Pentagon and Trump Jr. denied any impropriety, and Vulcan Elements’ founders said they received no political favouritism.
The timing of the loan has raised eyebrows, as it came about three months after 1789 Capital took a financial stake in Vulcan Elements. Sources told ProPublica that the White House requested the loan be processed “at an unusually rapid pace,” with staff working late nights over several weeks. The lawmakers have requested further information by June 16.
