Anduril Founder Supports Trump's Defense Industry Reforms

Jan 9, 2026, 2:49 AM

Hover over text to view sources

Palmer Luckey, the founder of the $30 billion defense tech company Anduril, has emerged as a surprising supporter of President Donald Trump's recent reforms targeting the defense industry. In an interview with Bloomberg TV, Luckey stated, "I think it's even good maybe to scare people sometimes," reflecting his belief that the changes could be beneficial for the sector overall.

The reforms, outlined in a recent executive order, include capping defense company CEOs' salaries at $5 million annually until certain conditions are met. As of 2021, Luckey reportedly earned $10.9 million in compensation from Anduril, although he mentioned that he pays himself a salary of $100,000 a year. In contrast, CEOs of major defense contractors like RTX Corp and Lockheed Martin earned $18 million and $23 million, respectively, in 2024.

The executive order also prohibits defense companies from issuing stock buybacks and dividends during periods of "underperformance," and it mandates that future defense contracts link compensation to production speed and on-time delivery rather than short-term financial metrics. As a private company, Anduril does not currently issue stock buybacks or dividends, although Luckey has indicated plans for a public offering in the future.

Luckey likened Trump's reforms to "grounding" a teenager, suggesting that such measures could serve as a temporary but necessary intervention to improve the industry's performance. He emphasized that the government should have the authority to impose restrictions on companies that rely on public funding, stating, "I think when you are on the dole, and effectively run on the public's wallet, the public should be able to impose whatever restrictions they want on you".

Despite his support for Trump's crackdown, Luckey's stance puts him at odds with many in the defense industry, who view the reforms as a potential threat to their interests. Following the announcement, shares of major defense contractors, including Lockheed Martin and Northrop Grumman, fell by approximately 6% before rebounding the next day.

However, Luckey remains confident that Anduril is well-positioned to comply with the new regulations. He pointed to the company's "Arsenal-1" plant in Columbus, Ohio, which has been built to produce autonomous vehicles and is set to begin production this summer. Luckey noted that the company invested $900 million in the facility and completed its construction ahead of schedule, although he acknowledged delays in developing a man-portable system to protect soldiers from drones due to technological complexities.

Luckey's comments reflect a broader shift in the US government's relationship with private defense contractors, as Trump's reforms aim to reshape the industry. While some analysts warn that these changes could pose significant risks to the sector, Luckey's perspective suggests that a more stringent regulatory environment may ultimately lead to improved performance and accountability within the defense industry.

In conclusion, Palmer Luckey's embrace of Trump's defense industry reforms highlights a complex dynamic within the sector, where the potential for increased government oversight is met with both apprehension and support. As Anduril prepares for its future, the implications of these reforms will likely continue to unfold in the coming months and years.

Trump Warns of Consequences if Supreme Court Rules Against Tariffs

President Trump has expressed grave concerns over the potential Supreme Court ruling on his tariffs, stating that a negative decision would lead to a 'complete mess' for the US economy. He emphasized the complexities of refunding billions collected from tariffs, which could take years to resolve.

Trump Promotes Economic Vision in Michigan Amid Inflation Concerns

During a recent visit to Detroit, President Trump outlined his economic vision, emphasizing investments from major automakers and criticizing current interest rates. Despite his optimistic rhetoric, inflation remains a significant issue, and job growth has slowed, raising questions about the effectiveness of his policies.

Supreme Court Delays Ruling on Trump's Tariff Authority

The Supreme Court has postponed its decision on the legality of tariffs imposed by President Trump, leaving significant implications for US trade policy and fiscal matters. The case centers on whether the president can use emergency powers to impose tariffs, a move that has faced legal challenges from various businesses and states.

Trump Proposes Ban on Large Investors in Housing Market

President Donald Trump has announced plans to ban large institutional investors from purchasing single-family homes, aiming to improve housing affordability for American families. This proposal has garnered support from several Republican lawmakers, who are eager to introduce legislation to codify the ban.

Somalia-US Relations Deteriorate as Aid Suspended

Relations between Somalia and the United States have reached a low point following Washington's decision to pause aid to the Somali government. This action stems from a dispute over the demolition of a World Food Programme warehouse and allegations of aid misappropriation.