Five Democratic lawmakers are pressing the White House for answers after a report alleged that a senior Trump administration official intervened to secure a $620 million Pentagon loan for a company with financial ties to the president's eldest son.
In a letter sent Tuesday to White House Chief of Staff Susie Wiles, the lawmakers called the situation an “egregious example of Trump administration corruption” and demanded a full explanation. The signatories include Senators Elizabeth Warren (Mass.), Richard Blumenthal (Conn.), and Mazie Hirono (Hawaii), along with Representatives Jason Crow (Colo.) and Mike Levin (Calif.).
The controversy centers on Vulcan Elements, a North Carolina-based rare-earth magnet startup. The company announced last November that it had received $620 million in a direct loan from the Pentagon and an additional $50 million from the Commerce Department. Vulcan said the funds would be used to boost domestic production of rare-earth magnets, aiming for 10,000 metric tons annually.
A ProPublica investigation published last week revealed that Donald Trump Jr.’s venture capital firm, 1789 Capital, took an undisclosed stake in Vulcan roughly three months before the deal closed. The report also stated that the loan request was made by Peter Navarro, the president’s senior counselor for trade and manufacturing.
“The American public – and service members that are in harm’s way – expect that the DoD contracting process is fair, unbiased, and competitive to ensure that only the best companies, providing only the best products, receive taxpayer dollars,” the lawmakers wrote. “But if this report is accurate, it reveals a staggering level of corruption and influence peddling that superseded this process, enriching the President’s son at the expense of U.S. national security and taxpayer dollars.”
The Democrats have requested that Wiles answer several questions about the White House’s and Navarro’s alleged involvement by June 16. The Hill has reached out to the White House for comment.
This is not the first time the Trump administration has faced scrutiny over potential conflicts of interest involving family members. Earlier this year, Trump announced a $700 million coal rescue plan using wartime powers, raising similar concerns about the use of executive authority for politically connected industries. Meanwhile, the House has pushed back on the president's agenda, recently advancing an $8 billion Ukraine military aid package despite Trump’s opposition.
As the June deadline approaches, the lawmakers are signaling they will not let the matter drop. The letter underscores a broader Democratic effort to investigate what they see as a pattern of the White House using its power to benefit the president's family and allies.
