President Trump’s sons are investing in domestic drone manufacturers at a time when the Pentagon is deploying new drone technology in combat and the administration has restricted foreign drone imports, raising fresh questions about conflicts of interest and the integrity of defense contracting.
In a move that blurs the lines between family business and national security, Eric Trump and Donald Trump Jr. have emerged as investors in multiple drone companies just as the U.S. military ramps up its use of advanced unmanned systems and the White House enacts policies favoring domestic production. This convergence of personal investment, presidential policy, and Pentagon contracts demands scrutiny: Are these investments fueling American innovation, or do they risk undermining public trust in the defense procurement process?
The latest development involves Powerus Corporation, a newly formed drone firm that publicly named Eric and Donald Trump Jr. as “notable investors” in a press release. Powerus aims to “support American drone industry dominance through domestic manufacturing, autonomous systems innovation, and strategic defense partnerships.” This announcement follows a series of investments by the Trump brothers in the sector, including Eric Trump’s stake in Xtend, an Israeli drone maker with a U.S. facility in Tampa, Florida.
The Trump Family’s Growing Drone Portfolio
The Trump family’s involvement in the drone industry spans several companies with direct ties to government contracts:
- Powerus Corporation: The new entity, formed from a merger between drone maker Powerus and golf course operator Aureus Greenway Holdings, plans for a public offering. The Trump brothers’ roles as “notable investors” were confirmed in a company press release.
- Xtend: Eric Trump is an investor in this Israeli firm, which he praised on social media as “the wave of the future” and for work to “keep America safe.” Xtend announced in November that it 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.”
- Unusual Machines: Donald Trump Jr. joined the advisory board in November 2024. This company has already secured government contracts, according to its website.
- Anduril Industries: Through his investment firm 1789 Capital, Donald Trump Jr. has taken a major stake in this defense company specializing in unmanned combat machinery, which has secured government contracts.
These investments coincide with a significant shift in U.S. military drone policy. The Pentagon disclosed that the joint U.S.-Israeli strikes on Iran in early 2026 marked the first combat use of one-way drones—a capability CENTCOM described as a “significant factor” in the conflict. This operational debut highlights the growing strategic value of such systems.
Administration Policy Opens Doors for Domestic Producers
In December 2025, the Trump administration banned foreign-made drones and critical components from communications and video-surveillance equipment, citing “national security concerns.” The action, formalized in an FCC order, targeted Chinese manufacturers that dominated the global market. This regulatory pivot created a vacuum for U.S. companies to compete for lucrative Pentagon contracts, directly benefiting the very firms now linked to the Trump family.
The timing is striking: as the administration restricts foreign competitors, the president’s sons are investing in domestic alternatives positioned to capture military business. While the White House maintains that President Trump is not involved in his sons’ deals, and that his assets are held in a trust managed by his children, ethics experts warn of profound implications.
Ethics Concerns and the Appearance of Impropriety
“It’s not likely that President Trump is making decisions on companies bidding for Pentagon contracts,” said Dylan Hedtler-Gaudette, director of government affairs at the nonpartisan watchdog Project on Government Oversight. “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?”
This “appearance of impropriety” looms large as defense contractors with Trump family ties seek federal funding. The lack of a traditional blind trust—instead, a structure where the president’s children manage his assets—intensifies scrutiny. The Trump Organization did not immediately respond to an ABC News request for comment, underscoring the administration’s history of sidestepping detailed conflict-of-interest disclosures.
Historical Context: A Pattern of Family Business Entanglements
This isn’t the first time the Trump presidency has drawn ethics alarms over family business activities. During his first term, President Trump faced lawsuits and congressional investigations for allegedly leveraging his office to benefit the Trump Organization. The current drone investments revive concerns about using presidential influence to shape markets in favor of private holdings.
Historically, presidential conflicts have centered on tangible assets like hotels or golf courses. Drones represent a more technologically advanced and militarily sensitive sector, where procurement decisions directly impact national security and battlefield outcomes. The Pentagon’s adoption of one-way drones in combat adds urgency: if contract awards are perceived as tainted by familial ties, it could erode confidence in U.S. defense capabilities at a moment of escalating global tensions.
Why This Matters Now
The intersection of Trump family investments, Pentagon innovation, and import bans creates a perfect storm for ethical breaches. Key implications include:
- Procurement Integrity: With billions in defense spending at stake, any hint of favoritism could distort competition and inflate costs for taxpayers.
- National Security: Rushing domestic drone production to counter foreign threats is sound policy, but if driven by personal profit rather than merit, it risks fielding inferior systems.
- Global Perception: Adversaries may exploit the optics of a president’s sons profiting from war tech to undermine U.S. credibility and alliances.
- Regulatory Capture: The FCC ban sets a precedent where political connections could dictate industrial policy, potentially stifling genuine innovation.
As the drone market consolidates under “America First” policies, the transparency of contract awards will be paramount. Without robust oversight, the line between patriotic investment and self-dealing becomes perilously thin.
The Trump administration’s actions—banning foreign drones while the president’s sons back domestic ones—require rigorous examination by Congress and watchdogs. The public deserves assurance that national security decisions are made in the nation’s interest, not in the interest of the first family’s portfolio.
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