Three months after Donald Trump Jr.'s venture capital firm bought a stake in a North Carolina rare-earth startup, Peter Navarro directed the Pentagon to prioritize that same company for what became the single largest loan in the history of its Office of Strategic Capital. Pentagon staff worked late nights to close it in weeks. The company's valuation jumped from $200 million to $2 billion. When a Democrat tried to subpoena Trump Jr. to explain it under oath, Republicans walked out of the hearing room.
The Call From the White House
In August 2025, 1789 Capital, the venture firm where Donald Trump Jr. serves as named partner, purchased an equity stake in Vulcan Elements as part of a $65 million fundraising round. Trump Jr. had told the Financial Times he was "very involved in the strategic decisions regarding where to invest our resources" at the firm.
By September or October 2025, staff at the Pentagon's Office of Strategic Capital received an unusual directive. It came from Navarro, the White House's senior counselor for trade and manufacturing and a close friend of Trump Jr. Companies seeking Pentagon loans are typically vetted for many months. Vulcan's deal was completed in weeks because staff were told it was a White House priority.
"The call came from the White House: We have to get this done," a defense official told ProPublica.
In November 2025, the Pentagon announced a $620 million conditional loan to Vulcan Elements, plus $80 million for partner ReElement Technologies. The Commerce Department added $50 million in equity. Trump's executive order EO 14241 had waived the independent technical review normally required before public money goes to an unproven startup. Vulcan had fewer than 50 employees at the time. The loan was worth more than twice Vulcan's entire valuation at the time 1789 Capital invested.
Vulcan's estimated valuation climbed from roughly $200 million to $2 billion after the deal was announced. No public record exists of any conflict-of-interest review, recusal, or financial disclosure related to Trump Jr.'s stake in the company.
View on X: Rep. Maxine Dexter announces motion to subpoena Don Trump Jr. over the Vulcan deal
Republicans Blocked the Subpoena
On March 25, 2026, Rep. Maxine Dexter (D-OR), the top Democrat on the House Natural Resources Oversight and Investigations Subcommittee, forced a vote to subpoena Trump Jr. to testify under oath about his firm's stake in Vulcan and how $670 million in taxpayer funds had benefited his investment.
Republicans went into recess rather than debate the motion. When they returned, they voted to block the subpoena, then shut down the hearing entirely to prevent further debate.
"For years, Republicans set a clear standard: when the President's family profits from their name and office, it demands investigation. Suddenly, that standard has vanished." (Rep. Maxine Dexter)
These are the same Republicans who spent two years and millions in taxpayer dollars subpoenaing Hunter Biden for far smaller dollar figures. They voted to hold him in criminal contempt. They declared any mixing of presidential family finances with federal money "abuse of the highest order." Subcommittee Chair Paul Gosar used those exact words about presidential family corruption in September 2023. For Trump Jr., they closed the hearing and went home.
The Bigger Pattern
The Vulcan deal is not isolated. At least four companies in 1789 Capital's portfolio received federal contracts or awards from the Trump administration in 2025, totaling more than $735 million. Among the companies under separate review for Pentagon loans: Unusual Machines, a drone parts manufacturer where Trump Jr. sits on the advisory board and holds millions of dollars in shares.
Richard Painter, the chief White House ethics lawyer under President George W. Bush, reviewed the Vulcan deal and was direct: "This is our money they're spending. This is corruption we pay for."
A February 2026 letter from three House ranking members demanding documents on the deal went unanswered. The administration has not disclosed how Vulcan was selected over competing companies, why it skipped the technical review process, or what role Navarro's relationship with Trump Jr. played in the White House directing the Pentagon to move fast.
A subpoena would have forced those answers on the record. Republicans made certain that will not happen.
Sources
- Rep. Maxine Dexter Press Release: Dexter Moves to Subpoena Donald Trump Jr. for $670 Million Taxpayer-Funded Deal (March 25, 2026)
- ProPublica: The White House Intervened to Get a $620 Million Deal for a Company Tied to Donald Trump Jr. (May 28, 2026)
- NPR: White House asked Pentagon to loan money to a company linked to Trump's oldest son (May 28, 2026)
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