A major new controversy has erupted in Congress after it was revealed that the Pentagon handed a $620 million loan—plus $50 million in equity—to a company tied to Donald Trump Jr., while House Republicans blocked Democrats’ attempt to subpoena him for testimony.
The House Natural Resources Oversight and Investigations Subcommittee voted Tuesday to prevent a subpoena for Trump Jr., who is a partner at 1789 Capital, the firm that holds a stake in Vulcan Elements, a North Carolina-based rare-earth magnet company. Democrats argued the subpoena was essential to determine whether the Trump family has been profiting from public funds while his father, President Donald Trump, is in office.
Representative Maxine Dexter (D-Ore.), the subcommittee’s top Democrat, forced a vote to subpoena Trump Jr., along with Vulcan Elements CEO John Maslin and Patrick Witt from the Pentagon’s Office of Strategic Capital. The measure failed in a party-line vote after Republican Chair Paul Gosar (R-Ariz.) tabled the motion and fellow GOP members adjourned the session.
“The Pentagon handed $620 million to a company backed by Trump Jr. months after his firm invested, and Republicans refuse to hold him accountable,” Dexter said in a statement. “For years, they demanded investigations whenever political families profited from public office. Suddenly, that standard has vanished.”
The Defense Department’s Office of Strategic Capital has said this was its largest-ever loan. Democrats allege the loan bypassed competitive procedures and independent technical review, raising serious questions about conflicts of interest. No public record shows a conflict-of-interest review or recusal tied to Trump Jr.’s role in 1789 Capital.
Vulcan Elements and Trump Jr. deny any involvement in securing the government funding. A Pentagon spokesperson told Snopes that Trump Jr. “was not involved in any aspect of the conditional loan commitment discussions” between the Defense Department and Vulcan. 1789 Capital has also claimed it “had zero involvement with the government’s loan and equity transactions involving Vulcan,” and Vulcan CEO John Maslin said he has never met Trump Jr.
Despite the denials, the optics are explosive: millions in federal funds flowing to a company backed by the president’s son, and a Republican-controlled committee refusing to subpoena him for answers. Democrats compared the situation to prior GOP-led investigations into Hunter Biden, highlighting the stark contrast in accountability.
“This is exactly the kind of deal they would have spent years investigating if it involved the son of a Democratic president,” Dexter added. “Instead, we’re seeing a pattern of blind loyalty and protectionism at the highest levels.”
Meanwhile, political and ethics watchdogs are demanding transparency. With federal funding, corporate stakes, and family ties all entwined, this scandal has all the makings of a headline-grabbing fight—unless the committee’s GOP majority continues to block scrutiny.
The subcommittee adjourned with the subpoena blocked in a 5-2 vote, leaving Democrats frustrated and Republicans shielding Trump Jr. from questions about what could be one of the largest private gains tied to federal funds in recent history.
