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Pentagon Weighs Direct Equity Stakes In U.S. Drone Startups

Photo by Iewek Gnos / Unsplash

In a push for "undisputed drone dominance," the Trump administration has entered advanced talks to directly fund American drone manufacturers, aiming to scale domestic defense production and reduce reliance on foreign supply chains.

According to The Wall Street Journal and defense network updates, the Pentagon's Office of Strategic Capital is leading the months-long discussions. Under the proposed framework, the federal government would use a mix of debt and equity financing, potentially taking direct ownership stakes in defense startups.

Drone superiority has been designated a top presidential priority within the administration's $1.5 trillion defense budget request for fiscal year 2027. Companies being vetted for federal funding include autonomous drone specialist Neros Technologies, reconnaissance provider Performance Drone Works, and Unusual Machines, a domestic component supplier that counts Donald Trump Jr. as an advisory board member.

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