August 1, 2026 - Washington, D.C. – U.S. Senator Adam Schiff (D-Calif.) has joined Senators Richard Blumenthal (D-Conn.), Ranking Member of the Senate Permanent Subcommittee on Investigations (PSI), and Elizabeth Warren (D-Mass), Ranking Member of the Senate Banking Committee, in two letters raising concerns about potential conflicts of interest surrounding the Trump Administration’s deals with more than a dozen critical mining companies with ties to President Trump’s family, Commerce Secretary Howard Lutnick’s family, or both.  

Senator Adam Schiff (D-Calif.)

In a letter sent to David A. Lorch, the Director of the Office of Strategic Capital (OSC) at the Department of Defense, Schiff, Blumenthal, and Warren sought records and information about a $620 million loan committed to Vulcan Elements, a rare earth magnet company backed by Donald Trump Jr. 

Pointing to recent reporting from ProPublica that White House Senior Counselor for Trade and manufacturing Peter Navarro intervened directly in the contracting process for this loan, Schiff, Blumenthal and Warren wrote, “These reports raise grave ethical and public safety concerns and the specter that the Pentagon is corruptly prioritizing funding for critical defense components based on ties to the Trump family. The use of funds from the so-called OBBBA to enrich a Trump family member is a further affront to taxpayers from a law that is estimated to add $5.1 trillion to the federal deficit. The loan to Vulcan Elements represents roughly 13% of all capital committed by the OSC as of January 2026.” 

The Senators continued, “The American people must be able to trust that our Department of Defense makes decisions based exclusively on furthering national security interests, not political cronyism. Forcing OSC staff to work late nights to complete a contract designed to benefit the Trump family diverts valuable resources away from other, more effective defense capabilities. Further, staffing Department of Defense offices for the benefit of commercial gain risks American lives and wastes taxpayer funding.” 

In a separate letter sent to Secretary of Defense Pete Hegseth, Secretary of Energy Chris Wright, Secretary of Commerce Howard Lutnick, Secretary of the Interior Doug Burgum, and President & Chairman of the Export-Import Bank of the United States John Jovanovic, Blumenthal, Schiff, and Warren demanded answers about the deals and President Trump’s role in effectuating them. 

Citing recent reporting from The New York Times, the Senators wrote: “Securing supply chains for critical minerals is vital for America’s national security and economic competitiveness, and has accordingly been a priority for recent administrations of both political parties… In the second Trump Administration, funding for efforts to secure in these supply chains has skyrocketed, with the One Big Beautiful Bill Act (OBBBA) providing nearly $13 billion for direct Defense Production Act grants and approximately $350 billion in available financing for critical minerals and other projects. This has resulted in what has been described as ‘a modern-day gold rush in the critical minerals industry.’” 

The Senators continued, “Recent reporting suggests that the result has been a host of deals to benefit the Trump and Lutnick families, including deals involving each of your agencies or departments. The 14 deals identified so far show that the government has provided or is considering providing these companies with at least $8.9 billion taxpayer dollars.” 

The full text of the letter addressed to Department of Defense’ Office of Strategic Capital can be found here and below: 

Dear Mr. Lorch,  

We write seeking information regarding the $620 million loan your office committed to Vulcan Elements, a rare earth magnet company backed by President Trump’s son, Donald Trump Jr. Reporting indicates that White House Senior Counselor for Trade and Manufacturing Peter Navarro intervened directly in the contracting process for this loan. Navarro reportedly personally initiated the contracting process for the loan, notwithstanding his close relationship with Mr. Trump Jr., and White House officials apparently pressured Pentagon staff to expedite the deal, forcing them to work “late nights and with little sleep” to complete the loan. 

These reports raise grave ethical and public safety concerns and the specter that the Pentagon is prioritizing funding for critical defense components based on company’s ties to the Trump family. The use of funds from the so-called One Big Beautiful Bill Act (OBBBA) to enrich a Trump family member is a further affront to taxpayers from a law that is estimated to add $5.1 trillion to the federal deficit. The loan to Vulcan Elements represents roughly 13% of all capital committed by the Office of Strategic Capital (OSC) as of January 2026.6  

Vulcan Elements’ financial ties to Donald Trump Jr. and the Trump Administration are well reported. Small Business Administration documents show that as recently as November 2025, Vulcan Elements had only eight employees. In August 2025, Vulcan Elements raised $65 million in funding from several Trump-affiliated venture capital firms, including 1789 Capital, which publicly lists Trump Jr. as a partner. The August 2025 funding round was led by Altimeter Capital, whose CEO, Brad Gerstner, lobbied for the passage of the OBBBA and currently runs a nonprofit dedicated to promoting the “Trump Accounts” savings campaign. These relationships appear to have proved profitable for all parties involved; shortly after receiving the $620 million loan, Vulcan Elements’ valuation skyrocketed, increasing the value of Donald Trump Jr.’s initial investment by as much as 90 percent. 

Donald Trump Jr. and Peter Navarro, the senior White House advisor that reportedly intervened on behalf of Vulcan Elements, are also deeply intertwined. Trump Jr. reportedly visited Navarro while Navarro was imprisoned in Miami for refusing to provide testimony related to the January 6th insurrection at the United States Capitol. In a podcast promoting Navarro’s recent book, Trump Jr. has referred to Navarro as “great patriot, great friend, great American.” This appearance seemed to be designed to benefit Navarro financially by increasing book sales. Navarro, in kind, dedicated his recent book to Trump Jr., among others, for having “my back when it was against the wall.”

If, as reported, Navarro intervened on behalf of Vulcan Elements, Navarro may have violated the ethical obligations binding executive branch employees. For example, Subpart E of the Executive Branch Standards of Ethical Conduct instructs executive branch employees to recuse themselves from matters that could create the appearance of impartiality, including matters involving persons with whom they seek a “business, contractual, or other financial relationship.” Given Navarro may have benefitted financially from his relationship with Trump Jr., including through book sales from appearances on Trump Jr.’s podcast, he likely should not have intervened on behalf of a company linked to Trump Jr.

This disturbing reporting is only the latest in a series of concerning events sparking concerns that President Trump is attempting to co-opt the Department of Defense and the Office of Strategic Capital to benefit his friends and family. At least ten companies linked to Trump Jr. and Eric Trump have won Department of Defense contracts or loans, raising significant conflict of interest concerns that ethics experts have said “undermines public confidence.”

 In response to a Congressional inquiry in March, the Department of Defense implied its policies for identifying corrupt practices extend only to employees of the Department itself, not to the Trump family. Donald Trump Jr. has also acknowledged playing an outsized role in staffing the Department of Defense, including screening candidates for “top jobs” on behalf of President Trump. Trump Jr. publicly admitted to selecting candidates based on their preference for spending more on drones, all while sitting on the advisory board of a drone company currently negotiating for additional funding with the Office of Strategic Capital.

The American people must be able to trust that our Department of Defense makes decisions based exclusively on furthering national security interests, not political cronyism. Pressuring OSC staff to complete a contract that benefits the Trump family, as reported, diverts valuable resources away from other, more promising defense capabilities. 

In addition to the information requests below, please preserve all records and communications related to the Vulcan Elements deal. This applies to internal communications, communications with White House officials, Donald Trump Jr., and Department of Defense officials outside the OSC. This includes but is not limited to: records and communications via email, whether official or personal; mobile devices; encrypted or disappearing messaging applications; social media; calendar entries; meeting notes; and voicemail and text messages. To the extent that you use any auto-delete functions, you should immediately suspend autodelete functions and notify persons with control over potentially relevant records of their preservation obligations. 

This preservation request covers both past and current efforts, as well as any planned or in development measures responsive to the issues raised in this letter. In light of these concerns, and pursuant to the Senate’s oversight responsibilities, please provide answers to the following questions by August 28, 2026:

1. Please preserve any documents or communications between OSC staff and Peter Navarro regarding the Vulcan Elements deal. 
2. Please provide a list of all White House officials, including Peter Navarro, who contacted OSC staff regarding the Vulcan Elements deal. 
3. Please provide the exact terms of the Vulcan Elements agreement.
4. Please provide a complete list of OSC personnel interviewed or recommended by Donald Trump Jr. during their selection process. 
5. Which, if any, of these individuals were involved in the negotiations between OSC and Vulcan Elements? 
6. Explain the nature of their involvement.

The full text of the letter addressed to U.S. Secretaries Pete Hegseth, Howard Lutnick, Chris Wright, Burgum, and President and Chairman of Export-Import Bank of the United States John Jovanovic can be found here and below:

Dear Secretary Hegseth, Secretary Wright, Secretary Lutnick, Secretary Burgum, and Mr. Jovanoic: 

We write today regarding troubling reporting concerning the continued use of government funds to benefit President Trump’s friends and family, including Commerce Secretary Howard Lutnick and his family. Recent reporting has detailed that at least 14 companies actively working with the federal government on critical mining deals have ties to companies connected to either Mr. Lutnick’s family, President Trump’s family, or both. This reporting has also detailed President Trump’s personal involvement in securing at least one of these deals. We write to request further details regarding the number of current mining deals involving President Trump’s friends and family, and President Trump’s role in effectuating these deals. 

Securing supply chains for critical minerals is vital for America’s national security and economic competitiveness, and has accordingly been a priority for recent administrations of both political parties. These materials are the critical ingredients for electronics, semiconductors, batteries, and green technology. In the second Trump Administration, funding for efforts to secure these supply chains has skyrocketed, with the One Big Beautiful Bill Act providing nearly $13 billion for direct Defense Production Act grants and approximately $350 billion in available financing for critical minerals and other projects. This has resulted in what has been described as “a modern-day gold rush in the critical minerals industry.” 

Recent reporting suggests that the result has been a host of deals to benefit the Trump and Lutnick families, including deals involving each of your agencies or departments. The 14 deals identified so far show that the government has provided or is considering providing these companies with at least $8.9 billion taxpayer dollars. In one case, it appears President Trump himself spoke with Kazakhstan’s President to ensure that Kaz Resources, a company connected to his son’s and Mr. Lutnick’s family, would have access to tungsten mines in Kazakhstan. The Export-Import Bank of the United States (EXIM) and the U.S. International Development Finance Corporation (DFC) have issued letters of interest for $1.6 billion of federal financing, indicating the willingness of these agencies to consider supporting the project, and the company is seeking an additional $400 million loan from the Department of Defense. This may represent only the tip of the iceberg of the true scale of money flowing to interests connected to the Lutnick and Trump families. 

It is especially important that federal investments meant to secure vital national security and economic interests like critical minerals are based on the merits, and that decisions to spend taxpayer dollars to secure these resources are made free of conflicts of interest. The circumstances regarding these deals suggest that those goals might not be at the forefront of the Administration’s considerations regarding these transactions. Please preserve all documents, records, and communications related to critical mining deals connected to companies with connections to the Trump and/or Lutnick families, including but not limited to Cantor Fitzgerald, USA Rare Earth, Kaz Resources, Perpetua Resources, ASP Isotopes, Critical Metals Corporation, Vulcan Elements, the Metals Company, Trilogy Metals, American Ocean Minerals Corporation, Guardian Metal Resources, Titan Mining, Westwater Resources, Reelement/American Resources Corporation, and Energy Fuels Incorporated. Please also provide detailed responses to the following requests by August 13, 2026:

1. Please identify any critical mining deals entered into or contemplated by your department or agency involving Cantor Fitzgerald or any entity affiliated with the Trump or Lutnick families since January 20, 2025 and, for each deal identified, please describe the contractual nature of that deal; 
2. For each deal identified in response to question 1, please describe the criteria used to select these specific companies, including a description of other companies considered and the reason those companies were not selected; 
3. For each deal identified in response to question 1, please describe any communications with the White House regarding the deal; 
4. For each deal identified in response to question 1, please describe any communications with Cantor Fitzgerald or any entity affiliated with the Trump or Lutnick families regarding the deal; and
5. For each deal identified in response to question 1, please describe any other White House involvement in the deal, including but not limited to any interactions with foreign governments regarding securing the companies access to critical mineral reserves. 

Thank you for your attention to this matter.

Source: Senator Adam Schiff