On Monday, President Donald Trump officially signed an executive order initiating plans for the establishment of a government-operated sovereign wealth fund, aimed at functioning as a robust economic development tool.
This fund may also play a significant role in facilitating a potential acquisition of the social media platform TikTok, amidst ongoing scrutiny regarding its Chinese ownership.
The newly proposed fund is intended to prioritize critical infrastructure projects, including the development and enhancement of airports, highways, and other vital public assets.
Additionally, this initiative could serve to expand American influence in strategically important regions such as Panama and Greenland.
U.S. Treasury Secretary Scott Bessent emphasized the urgency of launching this initiative, stating, “We’re going to stand this thing up within the next 12 months.
We’re going to monetize the asset side of the U.S. balance sheet for the American people.”
He noted that the fund would comprise a mix of liquid assets and various other U.S.-held resources, which would be leveraged for the collective benefit of the nation.
While specific details regarding the fund’s structure and operations were scarce, Trump indicated during his campaign that the fund could support “great national endeavors.”
He suggested that tariffs might serve as a potential source of funding for the initiative, drawing on examples from other nations that utilize taxes on natural resources, financial transactions, and carbon emissions as revenue mechanisms.
A prominent possibility discussed is that the United States could become a partner in the TikTok platform.
Although the app faced a brief suspension due to national security concerns, Trump has since signed an order reinstating it for a 75-day window, during which time TikTok must work to divest its Chinese interests to comply with U.S. regulations.
The concept of a U.S. sovereign wealth fund is not without precedent; however, such funds are typically established by smaller nations endowed with abundant natural resources and fiscal surpluses—
conditions not currently applicable to the United States, which has been grappling with substantial budget deficits.
Notable examples of existing sovereign wealth funds can be found in countries such as China, Norway, and Singapore.
The creation of a U.S. fund could bolster its competitive edge against these nations and reduce the government’s reliance on issuing Treasury debt for funding purposes.
The executive order articulates the fund’s overarching goals, which include promoting fiscal sustainability,
alleviating the tax burden on American families and small businesses, securing economic stability for future generations, and enhancing the United States’ economic and strategic leadership on the global stage.
Treasury Secretary Bessent and Commerce Secretary nominee Howard Lutnick have been charged with formulating a comprehensive operational strategy for the fund within the next 90 days.