The proposed sovereign wealth fund could serve as a financial engine to support large-scale government initiatives and strategic investments, particularly in vital sectors such as supply chain and infrastructure development..
In a move that could reshape U.S. government investment strategies, President Donald Trump signed an executive order on Monday directing the Treasury and Commerce departments to explore the creation of a sovereign wealth fund. This fund could finance major government projects, strategic investments, and even a potential acquisition of the popular social media app TikTok.
During a press briefing in the Oval Office, Trump highlighted the potential of such a fund, noting that while smaller nations have established sovereign wealth funds, the U.S. could leverage its economic power to create something far more impactful. “Other countries have sovereign wealth funds. They’re much smaller countries. They’re not the United States,” Trump said. “We’re going to be doing something perhaps with TikTok. Perhaps not. If we make the right deal, we’ll do it … Or if we make a partnership with very wealthy people.”
Treasury Secretary Scott Bessent indicated that the fund could be established within the next 12 months. If realized, it could provide a significant pool of capital for critical areas such as infrastructure, supply chain resilience, and advanced technologies. Sovereign wealth funds in regions like the Middle East and Europe have long been major players in global markets, investing heavily in Wall Street and the tech industry.
The executive order builds on Trump’s earlier campaign promises to use such a fund to modernize U.S. infrastructure, including highways, airports, and transportation systems. In a speech to the Economic Club of New York, Trump also suggested the fund could support state-of-the-art manufacturing hubs, advanced defense capabilities, and cutting-edge medical research, potentially saving billions by focusing on disease prevention.
Howard Lutnick, Trump’s nominee for Commerce Secretary, added that the fund could hold securities in companies with significant government contracts. Using the mass purchase of COVID-19 vaccines as an example, Lutnick said, “Maybe we should have some warrants and some equity in these companies.”
The idea of a U.S. sovereign wealth fund isn’t entirely new. Democrats have previously floated similar proposals, and Biden administration officials reportedly explored the concept last year. However, Trump’s focus on using the fund to potentially acquire TikTok has raised eyebrows. Earlier this year, Trump proposed a joint venture that would give the U.S. a 50% stake in the app, a move that left lawmakers questioning its legality and feasibility.
The 12-month timeline for establishing the fund has also sparked questions, particularly in light of Trump’s recent executive order granting TikTok a 75-day reprieve while negotiations for its sale continue. Trump has expressed interest in having billionaire allies like Elon Musk and Oracle co-founder Larry Ellison participate in the acquisition, with Microsoft also reportedly in talks.
While the specifics of the executive order remain unclear, the proposal underscores the Trump administration’s ambition to leverage government resources for strategic investments. Whether the fund materializes—and whether TikTok becomes part of its portfolio—remains to be seen. For now, the move signals a bold step toward reimagining how the U.S. government could invest in its future.
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