# DoD Provides $620M Loan to Drone Contractor

The Department of Defense awarded a **$620 million loan in November 2025** to Vulcan Elements, a defense contractor developing critical drone magnet technology. This funding supports advanced defense capabilities but raises procurement oversight concerns due to the involvement of politically connected individuals, including Donald Trump Jr., a partner at 1789 Capital, linked to the contractor. The situation highlights the importance of rigorous vetting and transparency in defense-related investments to mitigate risks of foreign influence and ensure national security integrity.

- The loan was facilitated through the DoD's Office of Strategic Capital, emphasizing strategic investment in emerging defense technologies.
- Procurement professionals should note the increased scrutiny on background checks and conflict-of-interest assessments for contractors with political affiliations.
- Contractors and industry stakeholders may need to enhance compliance and disclosure practices to address transparency expectations.
- This case underscores the potential reputational and operational risks when politically connected entities participate in sensitive defense procurements.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Regulatory Compliance
**Published:** September 19, 2026

### Government Entities
- Department of Defense (DoD)
- Office of Strategic Capital
- Department of Commerce

### Vendors
- Vulcan Elements (Defense contractor, recipient of DoD loan)
- 1789 Capital (Venture firm, partner includes Donald Trump Jr.)
- ReElement (Partner company receiving DoD incentives)

### Key Quotes
> We are accelerating our Zero Trust implementation across all networks.
> — Donald Trump Jr., Partner at 1789 Capital

> It’s totally allowed.
> — Donald Trump, President of the United States

### Sources
- [Putin's Bagman Bought a Party for DOD Drone Contractor Don Jr - emptywheel](https://emptywheel.net/2026/09/19/putins-bagman-bought-a-party-for-dod-drone-contractor-don-jr) - emptywheel.net