When the Pentagon announced a $620 million loan last year to a small North Carolina startup linked to Donald Trump Jr., defense officials and the company tried to tamp down suspicions of cronyism.The president’s eldest son said through a spokesperson that he wasn’t involved. The Pentagon said Trump Jr. played no role in the record-setting deal. And the startup’s founder told reporters that his company, Vulcan Elements, received no political favoritism.But interviews and Defense Department records reviewed by ProPublica show that the request to loan hundreds of millions of dollars to the firm linked to Trump Jr. was made by Peter Navarro, a White House adviser to President Donald Trump and a friend of Trump Jr.’s.Of the dozens of companies the Pentagon was considering funding at the time, Vulcan’s was the only deal initiated by a top aide to the president, said an official at the Pentagon who was not authorized to speak publicly.After defense officials got the White House request, they asked Pentagon staff to move at an unusually rapid pace, said another person who was involved in the deal at the Pentagon but not authorized to speak about it. The staff worked late nights and with little sleep to get the loan through in a matter of weeks, the source said.“The call came from the White House: We have to get this done,” the person said.The deal is one of many actions by the Trump administration that have helped companies in which the Trump family holds stakes. Government contracts and other benefits have gone to various Trump-linked companies, prompting allegations of self-dealing by Democratic lawmakers and good government experts. But ProPublica’s reporting on the Vulcan loan represents the first time the awarding of a contract from a federal agency has been directly linked to White House intervention.The loan was a massive financial commitment from the Pentagon in its effort to fund companies that could help the U.S. reduce dependence on China’s critical mineral supply chains. The deal was a dramatic win for Vulcan, a North Carolina rare-earth magnet company launched just two years earlier. Estimates of its valuation grew tenfold after the deal was announced. It was also a win for Trump Jr.’s venture capital firm, which took a stake of undisclosed size in Vulcan about three months before the Pentagon announced the deal.And there may be more good news on the way for the president’s eldest son. Among other companies under review for a Pentagon loan was a drone parts manufacturer that Trump Jr. advises and owns a stake in, according to one of the defense officials who spoke to ProPublica.Navarro, who served as trade adviser in Trump’s first term, and Trump Jr. have formed a close bond in recent years. The president’s son visited Navarro in prison while he served time for defying a subpoena from lawmakers investigating the Jan. 6, 2021, Capitol riot. Trump Jr. was one of the small group of people Navarro dedicated his latest book to for having “my back when it was against the wall.” And a week before the Vulcan deal was announced, Trump Jr. hosted Navarro — now the president’s senior counselor for trade and manufacturing — on his streaming show, encouraging his nearly 2 million subscribers to buy Navarro’s book. That interview was not long after word came down from Navarro to Pentagon staff to make the massive loan to Vulcan, one of the defense officials involved in the deal said.Navarro did not respond to questions from ProPublica sent to him directly. Neither did Vulcan. A White House spokesperson said in a statement that the administration is working “in the best interest of the American people,” adding, “The President’s entire team, including Senior Counselor Navarro and officials at the Department of War, is working together and with private industry to secure America’s critical mineral supply chain at Trump Speed.” Trump Jr.’s spokesperson said the president’s son does not discuss companies he has invested in with federal government officials and did not speak to Navarro about Vulcan. He “has no knowledge about how this deal came together,” the spokesperson said. A spokesperson for 1789 Capital, the venture firm where Trump Jr. is a partner, said it also played no role in Vulcan getting the loan and did not learn about the deal before it was public.“No company receives preferential treatment,” a Pentagon spokesperson said. “Outside affiliations, investors, or political connections play absolutely no role in the Department’s funding decisions.”Richard Painter, the chief White House ethics lawyer during the George W. Bush administration, said aides to the president should not be intervening in contracting and lending decisions by agencies, particularly in matters that financially benefit the president’s family.“This is our money they’re spending,” Painter said.
