WASHINGTON, May 30, 2026 — Rep. Mike Levin, D-Calif., accused the Trump administration of routing $620 million in Pentagon funds to enrich the president’s family and their allies Friday, calling the Vulcan Elements loan “rotten to the core” and warning that a second Trump Jr.-linked company is already under Pentagon review — part of what he called a deliberate pattern of self-dealing.
“Follow the money on this one. It is rotten to the core,” Levin wrote on X. “The president’s family is treating the federal Treasury like a private bank, and the bill lands on every taxpayer.”
“This is not a one-off. It is a pattern,” Levin added. “Routed through the Pentagon to enrich the president’s family and their friends. The Bush administration’s own chief ethics lawyer called it ‘corruption we pay for.'”
What ProPublica Found
According to ProPublica’s investigation, the $620 million loan to Vulcan Elements — a North Carolina rare-earth magnet startup founded in 2023 — was the only deal among dozens the Pentagon was considering that was initiated by a top aide to the president. That aide was Peter Navarro, Trump’s senior counselor for trade and manufacturing and a close friend of Trump Jr.
After defense officials received the White House request, Pentagon staff were told to move at an unusually rapid pace, working “late nights and with little sleep” to complete the loan in a matter of weeks — a process that normally takes many months. “The call came from the White House: We have to get this done,” one official told ProPublica.
The timeline sits at the heart of the conflict-of-interest allegations. In August 2025, Vulcan announced $65 million in investments — including from 1789 Capital, the venture firm where Trump Jr. is a partner. Three months later, in November 2025, the Pentagon’s Office of Strategic Capital announced the $620 million conditional loan to Vulcan. Estimates of Vulcan’s valuation jumped from approximately $200 million at the time 1789 Capital invested to approximately $2 billion after the deal was announced — a tenfold increase that represented a massive windfall for its investors, including Trump Jr.’s firm.
The Navarro-Trump Jr. Relationship
Levin highlighted the close personal bond between Navarro and Trump Jr. as central to understanding how the deal came together. Trump Jr. visited Navarro in prison while he served time for defying a congressional subpoena related to the January 6 investigation. Navarro dedicated his latest book to Trump Jr. for having “my back when it was against the wall.” A week before the Vulcan deal was publicly announced, Trump Jr. hosted Navarro on his streaming show “Triggered” — encouraging his nearly 2 million subscribers to buy Navarro’s book — in an episode in which the two also discussed rare earths and China’s supply chain dominance.
Navarro did not respond to ProPublica’s questions. The White House said the administration is working “in the best interest of the American people” and that its team “is working together and with private industry to secure America’s critical mineral supply chain at Trump Speed.”
Denials From All Sides
Trump Jr.’s spokesperson said he “does not discuss companies he has invested in with federal government officials and did not speak to Navarro about Vulcan” and “has no knowledge about how this deal came together.” A spokesperson for 1789 Capital said the firm “played no role in Vulcan getting the loan and did not learn about the deal before it was public.” The Pentagon said: “No company receives preferential treatment. Outside affiliations, investors, or political connections play absolutely no role in the Department’s funding decisions.” Vulcan did not respond to ProPublica’s questions.
The Rare-Earth Strategic Context
The loan was made through the Office of Strategic Capital — a Pentagon division established under the Biden administration and dramatically expanded under Trump, with its lending authority growing from approximately $1 billion to $200 billion. China dominates global rare-earth processing — producing, as of last year, the world’s entire supply of samarium, an essential component of magnets used in Tomahawk missile guidance systems and F-35 fighter jet engines. China also restricted exports of some rare-earth metals last year, underscoring the national security risks of dependence on a single supplier.
Vulcan, which had fewer than 50 employees at the time of the loan announcement, makes rare-earth magnets needed for drones and satellites. The loan also came with $50 million in incentives from the Commerce Department and a $50 million government equity stake in Vulcan with the right to purchase more later.
‘There Is More Coming’
Levin made clear in his post that the Vulcan deal is not an isolated incident. “And there is more coming,” he wrote. “A drone parts company Trump Jr. holds a stake in is also under Pentagon review.”
That company is Unusual Machines — a Florida drone parts manufacturer on whose advisory board Trump Jr. sits and in which he holds millions of dollars worth of shares, according to ProPublica. The Pentagon was accused of cronyism last year when it awarded Unusual Machines a contract to make drone engines for the Army. A defense official confirmed to ProPublica that Unusual Machines is among the companies under review for a Pentagon loan through the Office of Strategic Capital.
The pattern Levin described extends beyond rare earths. As other companies scramble for access to the Office of Strategic Capital’s expanded lending authority, executives have described a shift from a merit-based application process to one driven by personal networks and White House connections. “It’s like any industry: A lot of what it is — who you know,” one Nevada mining CEO told ProPublica after his company was rejected for a loan.
Congressional Response
Levin was among several Democratic lawmakers who have raised alarms over the Vulcan deal. A group of Democratic senators previously demanded the Pentagon explain how Vulcan was selected — the Pentagon’s response addressed only how it handles conflicts involving its own employees’ financial holdings, not those of the president’s family. House Democrats attempted to subpoena Trump Jr. to testify but were blocked by Republicans. Oregon Rep. Maxine Dexter said: “Donald Trump Jr. must be made to answer whether the president’s son illegally profited from his father’s presidency.”
Richard Painter, the chief White House ethics lawyer during the George W. Bush administration, told ProPublica: “This is our money they’re spending. This is corruption we pay for.” Levin quoted the line directly in his own post — closing his indictment of the Vulcan deal with the same words.
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