The Office of Strategic Capital and Its Impact on U.S. Defense

During the United Nations General Assembly in New York, I participated in an event by The David Network focused on the Pentagon’s Office of Strategic Capital (OSC) and its role. The David Network is a nonprofit uniting conservative students, alumni, and professionals from institutions like the Ivy League, MIT, and Stanford with mentors and employers in technology, finance, public policy, and defense. Nearby, the General Assembly carried on with its annual activities, producing resolutions that remain unbinding and recycling goals of a weapon-free world.

The aspirations of world leaders are evident, but decades of evidence suggest the Assembly is unable to achieve these goals. Conversely, the OSC works in the existing global landscape where peace is ensured through power and weaponry.

Under President Donald Trump, whom I worked with for nearly 25 years, the OSC transformed from a largely inactive body to an active force. Trump’s approach, likened to making a successful deal, energized the OSC, making it an essential tool for keeping the U.S. technologically ahead of its adversaries.

Modern warfare relies on rapidly advancing technologies. The U.S. must maintain an edge in industries dictating these wars and civilian sectors, including satellites, semiconductors, and drones. OSC’s role involves identifying crucial technologies, mobilizing private investment, and providing technical support. This process enables companies to expand vital capabilities quickly.

The OSC, energized by Deputy Secretary of War Stephen Feinberg and a team led by David Lorch, has achieved significant advances. One notable achievement is a $150 million loan to MP Materials to enhance rare earth processing at Mountain Pass, California. These materials are critical for military applications, and China currently dominates their processing.

OSC also planned up to $820 million for developing domestic drone manufacturing capacity. Drones play crucial roles in modern conflicts, highlighted in regions like Ukraine. Ensuring American capability in this area is essential as these tools become more sophisticated.

A key strategy involves OSC addressing obstacles faced by the private sector, working closely with companies to resolve issues autonomously understood better by them than the government. This fosters competition, innovation, and capital investment, revitalizing defense-related industries.

Furthermore, the Pentagon adjusted its procurement strategy, moving beyond annual munitions purchases. A recent multiyear agreement with Lockheed Martin, valuing up to $58.6 billion, targets increased production of the Patriot PAC-3 interceptor and others, ensuring a robust U.S. defense capability.

Criticism surrounds the use of interceptors, but they are intended for active deployment. Maintaining a cycle of rapid production and deployment counters adversarial threats, like those from Iran, enhancing U.S. and allied defenses.

The OSC maintains involvement beyond financial investment, partnering with companies throughout project developments. This hands-on approach aligns with President Trump’s vision for government efficacy in serious investment endeavors.

While the U.N. General Assembly closes its sessions, OSC continues safeguarding the U.S. and its partners, marking a stark contrast in approaches to global challenges.

Jason D. Greenblatt, initially a White House Middle East envoy, authored “In the Path of Abraham.” He leads Abraham Venture LLC and publishes “How to Watch” on Substack. Follow him on X: @GreenblattJD

This article represents the views of the writer.