<p>The Trump administration is in talks to provide funding to some American drone companies, including Unusual Machines and Sequoia Capital-backed Neros, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.</p>
<p>Shares of Unusual Machines were up 37% in premarket trading on Thursday. Drone dominance was described as a &#8220;presidential priority&#8221; in President Donald Trump&#8217;s $1.5 trillion defense budget request for fiscal year 2027.</p>
<p>Months-long discussions between private-sector firms and the Pentagon have included the Office of Strategic Capital, a Biden-era lending unit focused on companies critical to national security supply chains, the Journal reported.</p>
<p>Unusual Machines is a drone components maker that counts Donald Trump Jr. as an adviser, while Neros is a startup specializing in autonomous drones.</p>
<p>Performance Drone Works, which won a contract to supply the U.S. Army with reconnaissance drones, is also under consideration for possible funding, the report added.</p>
<p>Reuters said it could not verify the report. The White House, Pentagon, and companies involved did not immediately respond to Reuters&#8217; requests for comment.</p>
<p>Some proposals being discussed include funding through a mix of debt and equity, which could give the government ownership stakes, the report said. Shares of Aureus Greenway, which is set to acquire drone technology company Powerus, rose nearly 30% before the bell. The deal is also backed by the Trump family. Shares of other U.S.-based drone companies, Red Cat, Kratos Defense, AeroVironment, and Swarmer rose between 7% and 13% in premarket trading on Thursday.</p>
<p>Last June, the Trump administration unveiled an executive order titled “Unleashing American Drone Dominance,” aimed at boosting the domestic drone industry through executive action. The plan called for faster approvals for beyond-visual-line-of-sight operations and expanded exports of American-made drones.</p>
<p>It also prioritized U.S.-manufactured systems for federal agencies and the military, while exploring financial incentives such as direct loans, loan guarantees, and equity investments to strengthen the sector against foreign competitors, particularly China.</p>
<p>&#8220;The time has come to accelerate testing and to enable routine drone operations, scale up domestic production, and expand the export of trusted, American-manufactured drone technologies to global markets,&#8221; the order stated.</p>
<p>&#8220;Building a strong and secure domestic drone sector is vital to reducing reliance on foreign sources, strengthening critical supply chains, and ensuring that the benefits of this technology are delivered to the American people.&#8221;</p>
<p><em>(Reporting by Ananya Palyekar in Bengaluru; Additional reporting by Aishwarya Jain in Bengaluru; Editing by Sonali Paul and Edwina Gibbs)</em></p>

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Trump Team Exploring Major Bet On U.S. Drone Makers