Shocking Ties: How Trump Jr.’s Drone Investments Could Cash In on Massive U.S. Military Boost – DroneXL.co

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Imagine your hobby drone parts suddenly backed by billions—thanks to Trump family ties. Donald Trump Jr. has boarded Unusual Machines, eyeing gains from his dad’s $1.4B drone push, but is it fair play?
Donald Trump Jr. has joined the advisory board of Unusual Machines, a Florida-based drone company, positioning himself to potentially benefit from his father’s administration’s hefty investments in domestic drone production. This development comes as the U.S. government allocates $1.4 billion for small drone expansion under the One Big Beautiful Bill Act, sparking concerns over conflicts of interest in the growing drone sector. Source
Unusual Machines operates through two main divisions: Fat Shark, which produces goggles, controllers, and other drone components and accessories, and Rotor Riot, an e-commerce platform for drone parts. The company plans to acquire Rotor Lab, an Australian drone motor manufacturer, as part of its strategy to relocate small-drone supply chains to American soil.
This onshore effort includes establishing a 17,000 square foot (about 1,579 square meters) facility in Orlando, Florida, where Unusual Machines will produce its own drone motors starting in September. By moving manufacturing domestically, the company aims to sidestep heavy tariffs on Chinese drone technology and align with new national security regulations and Pentagon procurement policies. These moves target first-person view (FPV) drones, small systems already in use for military exercises, which could expand applications in both commercial and defense realms.
Securities filings reveal Trump Jr. owns 331,580 shares in Unusual Machines, with only two top executives holding more, according to The Intercept. Following his appointment to the advisory board last November, the company’s stock doubled to about $10 per share, highlighting immediate financial gains.
President Donald Trump’s military procurement policies and the recently passed One Big Beautiful Bill Act provide substantial support for small unmanned aerial systems. The act earmarks $1.4 billion specifically for expanding the small unmanned aerial system industrial base, which aligns directly with Unusual Machines’ investments in domestic production.
Congress is now drafting the 2026 National Defense Authorization Act (NDAA), expected to prioritize funding for U.S.-based production of small drone components, including at private facilities. A July 10 memo from Defense Secretary Pete Hegseth outlines the Pentagon’s plans to invest heavily in American-made drones and components. This policy shift addresses national security concerns by reducing reliance on foreign suppliers, particularly from China.
Building on that, Unusual Machines’ FPV drone motors and components are designed to comply with NDAA requirements, potentially qualifying for these subsidies. Larger defense contractors have included small drones in their offerings but have not prioritized their development, leaving room for specialized firms like Unusual Machines to gain traction in this niche.
Good government watchdogs express worries that Trump Jr.‘s role could create conflicts, especially since the president’s family faces fewer financial disclosure requirements than federal officials.
Don Jr. is not subject to any disclosures,” said Donald Sherman, executive vice president and chief counsel at Citizens for Responsibility and Ethics in Washington (CREW). “There’s just innumerable ways that this company with ties to Don Jr. can lobby the administration through him without having to report that information.”
Sherman emphasized the uniqueness of the situation:
“I want to make clear that this is a problem, and it’s a problem that impacts the whole of government, but there is no modern or historical comparison for what Don Jr. and the President are doing.”
This raises questions about transparency in an industry where government contracts drive profitability.
Experts like Colby Goodman from Transparency International U.S. highlight risks of insider information:
“There’s always these risks that he is going to have inside information or be able to access inside information from the U.S. government for a whole range of things. Just from the procurement side, he could know about upcoming bids, and the content of what that is, and help them win contracts with the U.S. government.”
Even without direct contracts, companies might profit elsewhere, as Julia Gledhill from the Stimson Center reportedly noted:
“What happens when contractors don’t get the U.S. government contracts they want is then they backfill with arm sales and deals with foreign entities. There’s something to be said, potentially, about the idea that contractors are going to develop technologies or weapons with state support and make money by selling them elsewhere.”
Trump Jr.’s involvement extends beyond Unusual Machines; he serves as a partner at 1789 Capital, a venture capital firm investing in defense companies such as Anduril, Hadrian, and Firehawk. While his exact role in investment decisions remains unclear, partners typically earn management fees and potential returns from successful exits, like acquisitions or public offerings.
A spokesperson for 1789 Capital stated:
“Mr. Malik and Donald Trump Jr. have an established business relationship that dates back more than five years, which is why the firm was thrilled to welcome Don’s business expertise last year in the role of partner. Don, as a private citizen who has never served in government, is permitted to continue to pursue his decades-long career in business.”
Sherman pointed out gaps in current regulations:
“The rules themselves aren’t designed, unfortunately, to force the adult children of government officials to report their financial entanglements. But Don Jr. and President Trump continue to make the case for why maybe they should.”
This scenario underscores trends in the drone industry, where policy-driven funding accelerates domestic manufacturing but also invites scrutiny over ethical boundaries. Drone professionals and pilots should monitor how these developments influence component availability, pricing, and regulatory compliance in the coming years.
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Haye Kesteloo is a leading drone industry expert and Editor in Chief of DroneXL.co and EVXL.co, where he covers drone technology, industry developments, and electric mobility trends. With over nine years of specialized coverage in unmanned aerial systems, his insights have been featured in The New York Times, The Financial Times, and cited by The Brookings Institute, Foreign Policy, Politico and others.
Before founding DroneXL.co, Kesteloo built his expertise at DroneDJ. He currently co-hosts the PiXL Drone Show on YouTube and podcast platforms, sharing industry insights with a global audience. His reporting has influenced policy discussions and been referenced in federal documents, establishing him as an authoritative voice in drone technology and regulation. He can be reached at haye @ dronexl.co or @hayekesteloo.
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