Trump administration in talks to fund US drone companies, WSJ reports

WASHINGTON - The Trump administration is in talks to provide funding to some drone companies, including Unusual Machines and Sequoia Capital-backed Neros, the Wall Street Journal (WSJ) reported on May 27, citing people familiar with the matter.

Drone dominance was described as a “presidential priority” in US President Donald Trump’s US$1.5 trillion (S$1.92 trillion) defence budget request for fiscal year 2027.

Months-long discussions between private sector firms and the Pentagon have included the Office of Strategic Capital, a Biden-era lending unit focused on companies critical to national security supply chains, WSJ reported.

Unusual Machines is a drone components maker that counts Mr Donald Trump Jr as an adviser, while Neros is a start-up specialising in autonomous drones.

Performance Drone Works, which won a contract to supply the US Army with reconnaissance drones, is also under consideration for possible funding, the report added.

Reuters could not immediately verify the report. The White House, the Pentagon and the companies did not immediately respond to Reuters’ requests for comment.

Some proposals being discussed include funding via a mix of debt and equity that could give the government ownership stakes, the report said. REUTERS