Sen. Adam Schiff, D-Calif., accused President Donald Trump of using taxpayer funds as a “wedding gift” for his son, Donald Trump Jr., on Wednesday. This came after a ProPublica investigation showed that Peter Navarro, a senior adviser at the White House, expedited a $620 million Pentagon loan to a startup that Trump Jr.’s investment firm was involved in.
“Trump might not have gone to his son’s wedding, but now we see what his gift was: $600 million of your tax money for one of his businesses,” Schiff posted on X. “The Trump family’s schemes have no limits, and we must remain determined to stop them.”
The ProPublica report, released on Wednesday by reporter Robert Faturechi, is based on interviews with Pentagon officials and an examination of Defense Department records.
It marks the first instance where a federal contract has been directly connected to White House influence for the benefit of the Trump family.
What ProPublica Discovered
According to the investigation, the $620 million loan to Vulcan Elements — a rare-earth magnet startup from North Carolina founded in 2023 — was the only deal among many the Pentagon was considering that originated from a top aide to the president.
This aide was Navarro, who is Trump’s senior counselor for trade and manufacturing.
After receiving the White House request, Pentagon staff were instructed to work at an “unusually fast pace,” with late nights and little sleep, to finalize the loan within weeks, as stated by a source involved in the process.
“The White House said: We have to get this done,” the source revealed.
The timing is crucial to the conflict-of-interest claims.
In August 2025, Vulcan announced it had received $65 million in investments, including from 1789 Capital, where Trump Jr. is a partner. Three months later, in November 2025, the Pentagon’s Office of Strategic Capital revealed the $620 million conditional loan to Vulcan — the largest in the office’s history and a significant increase from Vulcan’s previous fundraising. The value of Vulcan jumped from around $200 million when 1789 Capital invested to about $2 billion after the loan was announced.
The Navarro-Trump Jr.
Connection
Navarro and Trump Jr. have a close relationship that existed before the Vulcan deal.
Trump Jr. visited Navarro while he was in prison for defying a congressional subpoena linked to the January 6 investigation. Navarro dedicated his latest book to Trump Jr. for “having my back when it was against the wall.” Just a week before the Vulcan deal was made public, Trump Jr. featured Navarro on his streaming show “Triggered,” encouraging his nearly 2 million followers to buy Navarro’s book, and they discussed rare earth elements and China’s control over the supply chain.
The White House stated that the administration is acting “in the best interest of the American people” and that “the President’s entire team, including Senior Counselor Navarro and officials at the Department of War, is collaborating with private industry to secure America’s important mineral supply chain at Trump Speed.”
Navarro did not reply to ProPublica’s inquiries.
Denials from All Parties
A spokesperson for Trump Jr. claimed that he “does not discuss companies he has invested in with federal government officials and did not talk to Navarro about Vulcan” and “is unaware of how this deal came about.”
A representative for 1789 Capital stated that the firm “had no involvement in Vulcan receiving the loan and did not learn about the deal until it was public.” The Pentagon affirmed: “No company gets preferential treatment. Outside connections, investors, or political ties have no influence on the Department’s funding decisions.” Vulcan did not respond to ProPublica’s questions.
The Rare-Earth Context
The loan was issued through the Office of Strategic Capital — a Pentagon division created under the Biden administration and significantly expanded under Trump, with its lending power increasing from about $1 billion to $200 billion.
This office supports private companies working on rare-earth elements and crucial military technologies to lessen U.S. reliance on China.
The strategic need for the loan is clear.
China controls the global rare-earth processing market, producing the entire supply of samarium last year, which is vital for magnets used in Tomahawk missile guidance systems and F-35 fighter jet engines. Additionally, China restricted some rare-earth exports last year, highlighting the national security risks of depending on one supplier.
At the time of the loan announcement, Vulcan had fewer than 50 employees and produces rare-earth magnets essential for drones and satellites.
The company said it would use the money to build a large new facility capable of manufacturing thousands of tons of magnets each year and planned to create hundreds of new jobs. The loan also included $50 million in incentives from the Commerce Department and a $50 million equity stake in Vulcan, with an option to buy more later.
More Deals for Trump Jr. on the Horizon
ProPublica also reported that other companies being considered for Pentagon loans include Unusual Machines — a Florida drone parts manufacturer where Trump Jr. is on the advisory board and holds millions in shares.
The Pentagon faced accusations of favoritism last year when it granted Unusual Machines a contract to produce drone engines for the Army.
Congressional Response
Schiff was not the only Democrat to express concerns about the Vulcan deal.
A group of Democratic senators previously asked the Pentagon to clarify how Vulcan was chosen — the Pentagon’s response only addressed how it manages conflicts involving its own employees’ financial interests, not those of the president’s family. House Democrats tried to subpoena Trump Jr. to testify but were blocked by Republicans.
Richard Painter, who was the chief White House ethics lawyer during George W. Bush’s presidency, told ProPublica: “This is our money they’re using.
This is corruption we are paying for.”
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