Trump administration in talks to fund US drone companies — report

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 reported on Wednesday, citing people familiar with the matter.

Drone dominance has been described as a “presidential priority” in President Donald Trump’s $1.5 trillion defense budget request for fiscal year 2027, underscoring the administration’s focus on expanding U.S. capabilities in unmanned aerial systems for military use.

The discussions, which have taken place over several months between private-sector firms and the Pentagon, have also involved the Office of Strategic Capital, a Biden-era unit designed to support companies considered critical to national security supply chains, the report said.

Unusual Machines produces drone components and counts Donald Trump Jr., a son of President Trump, as an adviser. Neros focuses on developing autonomous drone systems, while investor Sequoia Capital has backed the startup.

Separately, Performance Drone Works, which previously secured a contract to supply the U.S. Army with reconnaissance drones, is also being considered for possible funding, according to the report.

The proposals under discussion reportedly include a mix of debt and equity financing that could give the U.S. government ownership stakes in select companies involved in drone manufacturing and defense technologies.

The White House, the Pentagon, and the companies involved did not immediately respond to Reuters’ requests for comment. Reuters was not able to independently verify the report. -Reporting by Ananya Palyekar in Bengaluru; Editing by Sonali Paul and Edwina Gibbs/Reuters