Pentagon Hands $620M to Trump Jr.–Backed Startup -Critics Call It the ‘Deal of the Dynasty’
Pentagon Hands $620M to Trump Jr.–Backed Startup -Critics Call It the ‘Deal of the Dynasty’
Rumors spread across X and Facebook in December 2025 claiming that a startup backed by Donald Trump Jr.’s venture capital firm had secured a massive $620 million loan from the U.S. Department of Defense. The claim — widely cited as evidence of corruption by critics – turned out to be accurate, though the Pentagon insists Trump Jr. played no role in the deal.
Vulcan Elements, a startup focused on producing rare earth magnets crucial for both consumer technology and advanced weapons systems, announced on Nov. 3 that it had received a $620 million direct loan from the Pentagon’s Office of Strategic Capital (OSC). The company said the funding would support plans to expand production capacity to 10,000 tonnes.
Rare earth magnets are key components in everything from laptops and electric vehicles to guided missiles, fighter jets, drones, and satellite systems. The Trump administration refers to the Department of Defense by its preferred “Department of War” branding, which Vulcan echoed in its statement.
‼️‼️ Donald Trump Jr’s VC Firm is involved with company that received $620 million government contract from Trump administration.
— Maine (@TheMaineWonk) December 4, 2025
This is the most corrupt administration in the history of America. pic.twitter.com/V26KciIUEn
In addition to the DoD loan, Vulcan said it would receive $50 million in Commerce Department incentives under the CHIPS and Science Act and $550 million in private investment.
The Pentagon formally confirmed the financing in a Nov. 21 statement, noting that the OSC had approved two loans — $620 million to Vulcan and $80 million to ReElement, another company specializing in refining rare earth elements. Officials said the funding would directly support U.S.-based separation, metallization, and magnet-manufacturing capabilities.
Emil Michael, the “Under Secretary of War for Research and Engineering,” said the loans would strengthen domestic supply chains needed for chipmaking, EVs, nuclear submarines, industrial motors, and military aircraft.
The financial link to Trump Jr. emerged after 1789 Capital founder Christopher Buskirk posted that his firm had invested in Vulcan Elements’ previous funding round and was investing again. Trump Jr. is listed as a partner at 1789 Capital.
The revelation prompted accusations online that Trump Jr.’s connection helped Vulcan secure the loan from his father’s administration. A Pentagon spokesperson pushed back, telling Snopes: “Mr. Donald Trump Jr. was not involved in any aspect of the conditional loan commitment discussions between OSC and Vulcan.”
Snopes has contacted ethics experts, Vulcan Elements, and 1789 Capital for further comment and will update the investigation as more information becomes available.
