Trump team nears direct financing deals for American drone companies - report

Insiders note the arrangements would help manufacturers expand output and cut costs, with federal support not aimed at purchasing drones

U.S. Secretary of Defense Pete Hegseth holds a briefing on the Iran war, with Chairman of the Joint Chiefs of Staff General Dan Caine (not pictured), at the Pentagon in Washington, US, May 5, 2026.

(photo credit: KEVIN LAMARQUE/REUTERS)

ByJERUSALEM POST STAFF

MAY 31, 2026 13:05

The Trump administration is nearing final agreements to supply direct federal support to selected American drone producers, according to a Wednesday report in The Wall Street Journal.

The report states that the proposed deals follow extended talks involving numerous private drone firms and the Office of Strategic Capital.

Although still under discussion, some arrangements may combine debt financing and equity investments, potentially giving the federal government ownership interests in private entities.

Those familiar with the talks explained that the support would enable companies to ramp up manufacturing volumes and lower unit prices at the same time. The money would not be used to acquire drones, the sources clarified.

The report names Performance Drone Works and Nero Technologies as the firms involved. Performance Drone Works lists Donald Trump Jr. among its shareholders and advisory board members.

Trump administration may provide direct capital to domestic drone firms

The disclosure follows the Pentagon announcement of a 1.1 billion dollar initiative to produce 300,000 low-cost attack drones by late 2027.

Prior to the current term, the Pentagon represented under 2 percent of total drone sales nationwide, according to a Defense Department assessment. The new effort is expected to shift that balance and marks the clearest commitment yet to emerging drone startups.

A 2025 projection showed the United States can build roughly 100,000 drones annually, while Ukraine produced four million units in the preceding year, the WSJ noted.

Achieving the 300,000-drone target by 2027 will require sharp reductions in production expenses and higher output rates. This means securing adequate supplies of batteries, motors, and other parts without depending on overseas suppliers such as China, which leads the sector.