According to sources familiar with the matter, the Trump administration is engaged in in-depth negotiations with several private drone companies over financing agreements aimed at boosting domestic drone production capacity and reducing costs. Potential deals may combine debt financing with equity incentives, implying that the government could hold stakes in some companies. Participants in the discussions include the Department of Defense and the Strategic Capital Office established during the Biden administration, which aims to provide financial support to companies critical to national security supply chains. Companies on the Pentagon's potential funding list include: Performance Drone Works, which has secured a U.S. Army contract for reconnaissance drones; Unusual Machines, a drone component supplier where Donald Trump Jr., the eldest son of Trump, serves as a shareholder and advisor; and Neros Technologies, a Sequoia Capital-backed startup specializing in the development of small first-person-view drones.