Trump admin. in advanced talks to directly fund US drone firms to boost production - report

The Trump administration is reportedly in advanced negotiations to provide direct federal funding to a select group of American drone manufacturers. The Wall Street Journal reported that these potential deals, still being finalized, could include both debt and equity stakes, potentially leading to the U.S. government acquiring ownership in private companies.

Sources familiar with the discussions suggest the funding aims to enable drone makers to scale up production and reduce prices. This financial support would be for manufacturing capabilities, not for purchasing drones. Performance Drone Works, which has Donald Trump Jr. as a shareholder and advisory board member, and Nero Technologies have been identified as companies involved in these talks.

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it would allow drone makers to scale up production while simultaneously bringing down prices.

This initiative signals a significant shift in U.S. government support for the drone industry. The Pentagon recently revealed a $1.1 billion plan to produce 300,000 low-cost attack drones by the end of 2027. Previously, the Pentagon accounted for less than 2% of U.S. drone sales.

With an estimated annual U.S. drone manufacturing capacity of about 100,000 units, the reported plan highlights the need for substantial growth. Ukraine, for example, manufactured four million drones last year. To meet its goal of 300,000 drones by 2027, the U.S. must significantly reduce manufacturing costs and increase production, including sourcing components without relying on markets like China, which currently dominates the field.

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the funding the US would supply would not be for buying drones, sources added.