Watchdogs Furious as Trump Jr.–Backed Company Moves Forward With $620M Government Payout
A start-up backed by Donald Trump Jr.’s investment fund remains under public scrutiny as the company proceeds with a massive federal financing commitment worth more than $600 million. No new government action has been taken since the original announcement, but the size and timing of the deal continue to raise questions.
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Vulcan Elements, a U.S. rare-earth magnet manufacturer, secured a $620 million conditional loan from the Pentagon’s Office of Strategic Capital as part of a larger $1.4 billion public-private supply chain package. Trump Jr.’s fund, 1789 Capital, invested in the company months before the loan was finalized.
The deal is not a grant but a conditional federal loan, meaning funds are released only as milestones are met. Pentagon officials say the award went through standard review procedures and that neither Trump Jr. nor 1789 Capital had any role in the loan evaluation process. Vulcan’s leadership has also said Trump Jr. had “zero involvement” in the negotiations.
Despite those assurances, ethics experts and watchdog groups say the optics remain troubling because the financing was approved under an administration led by Trump Jr.’s father. Opponents argue the deal highlights a broader pattern in which 1789-backed companies appear positioned to benefit from federal actions.
The magnet plant project is moving forward in Benson, North Carolina, where officials say it could create roughly 1,000 jobs. Construction planning is underway, and Vulcan says the facility will become one of the largest magnet factories outside China.
There have been no new filings, no new statements from the Pentagon, and no formal inquiries launched at the federal level. The deal remains active, and the company continues to advance its build-out as public scrutiny intensifies.