May 27 (Reuters) - The Trump administration is in talks to provide funding to some drone companies, including Unusual Machines and Sequoia Capital-backed Neros, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Shares of Unusual Machines were up 37% in premarket trading on Thursday.
Drone dominance was described as a "presidential priority" in President Trump's $1.5 trillion defense budget request for fiscal year 2027.
Months-long discussions between private sector firms and the Pentagon have included the Office of Strategic Capital, a Biden-era lending unit focused on companies critical to national security supply chains, the Journal reported.
Unusual Machines is a drone components maker that counts Donald Trump Jr. as an adviser, while Neros is a startup specializing in autonomous drones.
Performance Drone Works, which won a contract to supply the U.S. Army with reconnaissance drones, is also under consideration for possible funding, the report added.
Reuters could not immediately verify the report. The White House, the Pentagon and the companies did not immediately respond to Reuters' requests for comment.
Some proposals being discussed include funding via a mix of debt and equity that could give the government ownership stakes, the report said.
Shares of Aureus Greenway, which is set to acquire drone technology company Powerus, rose nearly 30% before the bell. The deal is also backed by the Trump family.
Shares of other U.S.-based drone companies, Red Cat, Kratos Defense, AeroVironment and Swarmer rose between 7% and 13% in premarket trading on Thursday.
(Reporting by Ananya Palyekar in Bengaluru; Additional reporting by Aishwarya Jain in Bengaluru; Editing by Sonali Paul and Edwina Gibbs)
