Trump Moves to Develop Sovereign Wealth Fund to ‘Create Value for American Citizens’
The sheer size of the federal government and the business it does with companies “should create value for American citizens,” Commerce Secretary Howard Lutnick said.
President Donald Trump announced Monday his plan to establish a sovereign wealth fund, similar to those in other countries, to generate financial benefits for American citizens. The proposal, which he had floated during his 2024 presidential campaign, aims to leverage government assets to provide long-term economic value.
While full details on the fund’s structure remain unclear, Trump made the announcement in an Oval Office ceremony. Treasury Secretary Scott Bessent outlined the initiative, noting that it would consist of “a combination of liquid assets, assets that we have in this country as we work … to bring them out for the American people.”
Commerce Secretary Howard Lutnick, who will play a key role in establishing the fund, suggested that it could take up to a year to implement. He also indicated that the fund might be used to facilitate the acquisition of TikTok, though he did not elaborate on specific mechanisms.
“The extraordinary size and scale of the U.S. government and the business it does with companies … should create value for American citizens,” Lutnick emphasized. “If we are going to buy 2 billion Covid vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people.”
The concept of a sovereign wealth fund is not new. Norway operates the world’s largest such fund, using oil revenues to invest in global assets like stocks, accumulating a net worth equivalent to approximately $325,000 per Norwegian citizen. Other nations, including China, Saudi Arabia, Australia, Iran, and Russia, maintain significant sovereign funds as well. Within the United States, states such as Alaska and Texas manage state-run funds to support local economies.
However, sovereign wealth funds are not without risks. A 2024 study from the Carnegie Endowment for International Peace warned that without proper governance and regulatory safeguards, such funds could become “conduits of corruption, money laundering, and other illicit activities.”
As discussions on the sovereign wealth fund unfold, many industries, including the vape sector featuring brands like Lost Mary, Breeze Vape, and Raz Vape Flavors, are monitoring potential economic shifts. The introduction of such a fund could impact federal business partnerships and broader market dynamics, potentially influencing emerging consumer trends.
CORRECTION (Feb. 3, 2025, 8:39 p.m. ET): A previous version of this article misattributed a quotation. Howard Lutnick said the U.S. government’s transactions with companies “should create value for American citizens,” not Scott Bessent.
