The Trump administration is engaged in talks to provide funding to drone companies, including Unusual Machines and Neros, as part of efforts to strengthen drone production and national security supply chains [1, 2]. Unusual Machines, a maker of drone components, counts Donald Trump Jr. as an adviser and shareholder [1, 2]. Discussions have included the possibility that the government could take equity stakes or ownership positions in these firms [1, 2].
Performance Drone Works, which supplies reconnaissance drones to the US Army, is also being considered for funding, though with less certainty [1]. After news of the talks, shares in drone-related companies surged sharply. Unusual Machines stock rose nearly 50%, Kratos Defense & Security shares climbed 14%, AeroVironment gained 17%, and the Drone & Modern Warfare ETF (JEDI) rallied 8% [2].
Austin Bohlig, an analyst at Needham, said the potential support "makes particular sense for Unusual Machines given the critical and supply-constrained nature of drone components and domestic manufacturing capabilities" [2]. The push to fund drone companies aligns with the Trump administration’s $1.5 trillion defense budget request for fiscal year 2027, which cites drone dominance as a presidential priority [1].
Initial reports emerged on May 27 when the Wall Street Journal detailed the administration’s talks involving Unusual Machines and Neros [1]. The following day, drone stocks surged on speculation about government investment through direct funding or equity holdings [2]. The next step will be monitoring whether formal funding agreements or equity investments materialize as part of the FY2027 defense budget implementation.
