Sen. Adam Schiff, D-Calif., accused President Donald Trump of using taxpayer money as a “wedding present” for his son Donald Trump Jr. after a ProPublica investigation revealed a $620 million Pentagon loan to a startup in which Trump Jr.’s venture capital firm had a stake.
Pentagon Loan Sparks Conflict-of-Interest Concerns
The investigation found that White House senior counselor Peter Navarro personally intervened to fast-track the loan to Vulcan Elements, a North Carolina rare-earth magnet startup founded in 2023. According to ProPublica, the Vulcan deal was the only Pentagon loan among dozens considered that involved direct White House intervention. Defense staff were instructed to complete the loan at an “unusually rapid pace,” working long hours to finalize it within weeks.
Trump Jr.’s Venture Capital Ties
Vulcan received $65 million in investments from 1789 Capital, where Trump Jr. is a partner, in August 2025. Three months later, the Pentagon approved the $620 million loan — nearly 100 times what Vulcan had previously raised. Following the announcement, Vulcan’s valuation reportedly jumped from $200 million to $2 billion.
Close Relationship Between Navarro and Trump Jr.
Navarro and Trump Jr. have a longstanding personal relationship. Trump Jr. visited Navarro in prison after he defied a congressional subpoena, and Navarro dedicated his book to Trump Jr. A week before the Vulcan loan was announced, Trump Jr. hosted Navarro on his streaming show “Triggered,” promoting Navarro’s book and discussing rare-earth elements.
Responses From the White House and Others
The White House stated the loan was in the “best interest of the American people” and part of securing critical mineral supply chains. Navarro did not comment to ProPublica.
Trump Jr.’s spokesperson denied any involvement, stating he “does not discuss companies he has invested in with federal government officials” and had no knowledge of the loan’s details. The Pentagon said outside affiliations or political connections do not influence its funding decisions, and 1789 Capital claimed it played no role in the Vulcan loan.
Strategic Importance of Rare-Earth Elements
The loan came from the Pentagon’s Office of Strategic Capital, a division funding companies producing rare-earth elements and critical military technology. China dominates global rare-earth production, which is vital for components used in missiles, fighter jets, drones, and satellites.
Vulcan planned to use the funds to build a facility producing thousands of tons of magnets per year and create hundreds of jobs. The deal also included $50 million in incentives from the Commerce Department and a $50 million government equity stake.
Potential Future Deals Involving Trump Jr.
ProPublica reported that other companies under Pentagon review, such as Florida-based drone parts manufacturer Unusual Machines, involve Trump Jr. as an investor and advisory board member. The Pentagon has faced past criticism for potential cronyism involving contracts awarded to companies tied to Trump Jr.
Congressional Reactions
Schiff called the loan a “wedding present” for Trump Jr. Other Democrats raised concerns about how Vulcan was selected for funding. Attempts to subpoena Trump Jr. were blocked by Republicans. Richard Painter, former White House ethics lawyer under George W. Bush, criticized the deal as corruption, saying, “This is our money they’re spending.”
