News Desk (MNN); Eric Trump, son of United States President Donald Trump, is investing in an Israeli drone manufacturer, reigniting concerns about potential conflicts of interest as the Trump family expands its business ventures during the president’s second term.
Eric Trump is part of a $1.5 billion merger between Israeli drone company Xtend and Florida-based JFB Construction Holdings, a small construction firm. The merger aims to take Xtend public later this year, according to a news release from JFB on Tuesday.
Xtend is an Israeli company whose drones have been used by Israel’s military in Gaza, including for mapping underground tunnels, The Wall Street Journal reported. Drone maker Unusual Machines, which named Donald Trump Jr. as an adviser in November 2024, is also participating in the merger.
Xtend markets its drones as “low cost per kill,” appealing to the U.S. Department of Defense. In November, the company announced a multimillion-dollar Pentagon contract without disclosing the contract’s exact value. This month, Xtend was selected for the Defense Department’s Drone Dominance Program, which seeks to rapidly deploy low-cost attack drones. Previous contracts include an $8.8 million Pentagon deal in December 2024.
Eric Trump said in a statement, “I am incredibly proud to invest in companies I believe in. Drones are clearly the wave of the future. Xtend has unbelievable potential.” JFB CEO Joseph F. Basile III emphasized combining Xtend’s AI technology with JFB’s infrastructure and execution capabilities to accelerate U.S. manufacturing and support next-generation defense technologies.
Conflict-of-Interest Concerns Renewed
Ethics experts have highlighted this investment as a renewed conflict-of-interest concern, questioning whether the Trump family is using the presidency to advance personal business interests. Kedric Payne, senior director of ethics at the Campaign Legal Center, said: “The first thing that comes to mind is another example of the president’s family appearing to profit from the presidency. Previously, families avoided even the appearance of benefiting, but now there is no such reassurance.”
JFB Construction appointed former White House attorney Stefan Passantino to its board amid the merger. The Trump family has also applied to trademark the president’s name for airports, although they claim no fee will be charged for one proposed renaming near his Florida residence.
Comparisons have been drawn to Hunter Biden, who faced criticism for using his White House connections to advance his business dealings overseas. Payne noted that Eric Trump’s investment in a defense contractor is far more significant than prior controversies, potentially providing access to lucrative U.S. Defense Department contracts.
Representatives of the Trump Organization and the White House did not respond to requests for comment.
