Trump sons investing in domestic drone production businesses
President Donald Trump’s two eldest sons have waded deeper into the drone business, potentially further entangling the first family's business interests with an administration that has taken steps to prioritize domestic production of military-grade drones.
On Monday, Powerus Corporation, a newly created drone firm, described Eric Trump and Donald Trump Jr. as “notable investors” in their operation, which will aim to "support American drone industry dominance through domestic manufacturing, autonomous systems innovation, and strategic defense partnerships,” according to a company press release.
Eric Trump is also an investor in an Israeli drone maker called Xtend, which last year opened a U.S. facility in Tampa, Florida.
"I am incredibly proud to invest in companies I believe in. Drones are clearly the wave of the future,” the Trump Organization said on behalf of Eric Trump, in response to an ABC News request for comment.
Xtend announced in November that it had secured a "multi-million-dollar U.S. Department of War (DOW) contract to develop and deliver AI-enabled affordable close quarter modular one-way attack drone (OWA) kit."
The joint U.S.-Israeli attacks on Iran are the first time that the Pentagon has used one-way drones in combat, according to U.S. Central Command (CENTCOM). The drones have proven to be a significant factor in the conflict, according to CENTCOM.
Donald Trump Jr. in November 2024 joined the advisory board of Unusual Machines, another drone maker that has already secured government contracts.
Additionally, 1789 Capital, Donald Trump Jr.’s investment firm, has taken a major stake in Anduril Industries, a defense company that specializes in unmanned combat machinery and that has also secured government contracts.
The Trump administration in December banned foreign-made drones and their critical components, citing "national security concerns." The ban includes communications and video-surveillance equipment from Chinese manufacturers, which have long been the dominant player in the global drone market.
The action created an opening for companies in the highly fragmented U.S. drone sector to compete for lucrative Pentagon contracts.
Dylan Hedtler-Gaudette, the director of government affairs at the nonpartisan ethics watchdog Project on Government Oversight, said these deals "at a minimum present the appearance of impropriety.”
“It's not likely that President Trump is making decisions on companies bidding for Pentagon contracts,” Hedtler-Gaudette told ABC News. "But everyone who is making those decisions is certainly aware of who is involved in those companies. So it is hard to trust the integrity of those decisions. Are contracts going to the best competitors offering up bids? Or are they handing out bids based on family connections to the White House?”
The merger announced Monday would combine drone maker Powerus with Aureus Greenway Holdings, a golf course operator, into Powerus Corporation, a single company, according to the press release.
The company plans to be publicly traded once the merger goes through.
The Trump family has previously said their father is not involved in any of their business deals, and the president has repeatedly denied any conflicts of interest, with the White House saying that his assets are in a trust — though not a traditional hands-off blind trust, but one managed by his children.
