Money Grab/Give government contracts to family and donors
The Navy awards Anduril up to $2.9B for a $6.6B submarine shipyard
On October 6, 2026, at the former Bethlehem Steel site at Sparrows Point, Maryland, Trump announced “Arsenal-2,” an Anduril Industries shipyard to build components and eventually large sections of Virginia-class submarines. 1789 Capital, where Donald Trump Jr. is a partner, is an Anduril investor.
What happened
On October 6, 2026, Trump went to Sparrows Point, outside Baltimore, where Bethlehem Steel once built ships, and announced a new shipyard. Anduril Industries, a defense technology company, will spend $3.7 billion building “Arsenal-2” to make parts, and later whole sections, of Virginia-class attack submarines. The Navy awarded Anduril a contract worth up to $2.9 billion, paid as production targets are met. Anduril’s $3.7 billion plus the Navy’s up to $2.9 billion is the stated $6.6 billion. Maryland and Baltimore County agreed to match up to 13% of Anduril’s investment.
In June 2025 Anduril raised $2.5 billion from investors, among them 1789 Capital, the fund where Donald Trump Jr. is a partner. Anduril was already one of the Pentagon’s fastest-growing contractors. ABC News counted roughly 135 federal contracts to Anduril since that round.
On August 4, 2026, four lawmakers asked the Defense Department’s inspector general to examine awards to companies the president’s sons have invested in. The Navy’s $2.9 billion is a ceiling, not money spent; it is paid out as Anduril meets production targets.
Who benefited
Anduril’s investors include 1789 Capital and, through it, Donald Trump Jr. A $2.9 billion Navy commitment and a government-backed shipyard raise the value of every share in the company. Maryland officials, who gain a large employer, stood beside the president at the announcement.
Who wanted something
Anduril has positioned itself as the alternative to the traditional shipbuilders, and the Navy is years behind on submarine production. Trump wanted a manufacturing announcement in a Democratic state a month before the midterms. Each got it at Sparrows Point on October 6, 2026.
Who lost out
Taxpayers fund the Navy contract of up to $2.9 billion and the state match of up to 13% of Anduril’s $3.7 billion. The shipbuilders who did not get this work lost it. The Navy’s submarine shortfall is real. The company chosen to fix it has the president’s son among its investors.
Why it matters
This is the largest single government commitment to a company the president’s sons have money in, and the president announced it himself. It is also the newest. Vulcan, Hadrian, Powerus and Unusual Machines are earlier entries in the same pattern.
Sources ABC NewsThe Daily Record (Maryland)WJLA (Sinclair)Sen. Warren, Sen. Blumenthal, Sen. Duckworth, Rep. Garcia (primary)