Democrats Demand White House Explanation on $620M DoD Loan to Trump Jr.-Linked Startup
A group of Democratic lawmakers wants the White House to explain how a startup in North Carolina, financially backed by a venture capital firm linked to Donald Trump Jr., obtained a $620 million loan from the Department of Defense and a $50 million investment from the Department of Commerce.
In a letter to White House Chief of Staff Susie Wiles, sent Tuesday, the five Democratic lawmakers are asking for an explanation of what they say appears to be “an egregious example of Trump administration corruption” based on recent reporting from ProPublica.
Specifically, they want to know whether Peter Navarro, an adviser to President Donald Trump, helped Vulcan Elements, a rare-earth magnet startup, obtain the lucrative loan from the Pentagon. Vulcan Elements is backed by 1789 Capital, which Trump Jr. joined as a partner in 2024.
“If this report is accurate, it reveals a staggering level of corruption and influence peddling that superseded this process, enriching the President’s son at the expense of U.S. national security and taxpayer dollars,” the Democrats wrote.
“The American public – and service members that are in harm’s way – expect that the DoD contracting process is fair, unbiased, and competitive to ensure that only the best companies, providing only the best products, receive taxpayer dollars,” the group added.
The Independent has asked the White House and Department of Defense for comment.
Last month, ProPublica reported that Navarro intervened in favor of Vulcan Elements while the Pentagon was considering funding roughly a dozen companies. An unnamed Pentagon official told the news outlet that Navarro was the only top Trump aide to do so.
Both the Pentagon and Trump Jr. told ProPublica that Trump Jr. played no role in the deal. Vulcan Elements’ founders also told reporters that the company received no political favoritism.
Navarro called ProPublica’s story ”fake news on steroids” after it was published.
The timing of the loan raised questions because it occurred roughly three months after 1789 Capital, the venture firm in which Trump Jr. is a partner, took a financial stake in Vulcan Elements and the actual loan was approved swiftly.
Sources told ProPublica that once the White House requested Vulcan Elements receive the loan, they requested the Pentagon officials “move at an unusually rapid pace” to finalize it. Staff allegedly worked late nights with little sleep over a matter of weeks, the outlet reported.
Now, the Democratic lawmakers want Wiles to explain whether Navarro contacted the Pentagon at someone’s direction, who he contacted, why he chose to advocate for Vulcan Elements, whether Trump was aware of this and if any other administration officials contacted the Pentagon, among other questions.
Senator Elizabeth Warren, Senator Richard Blumenthal, Senator Mazie Hirono, Rep. Jason Crow and Rep. Mike Levin have asked for more information by June 16.
Lawmakers are also asking questions about other potential government investments involving companies backed by 1789 Capital, including a $10.8 million Pentagon contract and a $100 million Commerce investment to PsiQuantum, a quantum chip start-up.
