President Donald Trump gathered with powerful business figures and cabinet members in the Oval Office for a groundbreaking announcement.
According to the New York Post, Trump signed an executive order Monday establishing the United States' first-ever sovereign wealth fund, with Chinese-owned social media platform TikTok potentially becoming its inaugural acquisition.
The creation of this government-operated investment fund marks a significant shift in U.S. economic policy, positioning America to compete with other nations that have successfully operated similar funds. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will spearhead the initiative, which aims to monetize government assets and create wealth for American citizens.
The new U.S. sovereign wealth fund will enter an arena dominated by established players like Norway's Government Pension Global Fund, which currently holds $1.7 trillion in assets. China, Hong Kong, Abu Dhabi, and Kuwait also maintain trillion-dollar sovereign wealth funds, setting a high bar for the American initiative.
Trump's administration has not specified the exact funding mechanism for the endowment, though the president previously suggested using tariff proceeds. The fund's structure will incorporate both liquid assets and strategic investments in American companies doing business with the government.
During the signing ceremony, Trump expressed confidence in the fund's potential growth, speaking from the Oval Office, where News Corp founder Rupert Murdoch and Oracle billionaire Larry Ellison were present as witnesses.
The potential acquisition of TikTok, which boasts approximately 170 million U.S. users, could provide an early opportunity for the fund. This possibility arose following Trump's Friday announcement of a 10% tariff aimed at addressing fentanyl exports from China.
Trump shared his vision for the fund's future, stating:
Other countries have sovereign wealth funds, and they're much smaller countries, and they're not the United States. As an example, TikTok, we're going to be doing something perhaps … and we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people — a lot of options, but we could put that as an example in the fund.
Treasury Secretary Bessent outlined the implementation timeline and strategy:
We're going to stand this thing up in the next 12 months. We are going to monetize the asset side of the US balance sheet for the American people. We are going to put the assets to work.
The fund's investment strategy will encompass various sectors, including infrastructure, manufacturing, and medical research. Commerce Secretary Lutnick emphasized leveraging government purchasing power to generate equity positions in companies doing business with federal agencies.
The administration plans to use the fund to invest in highways, airports, and manufacturing hubs. This approach aims to create long-term value while maintaining strategic control over critical assets and industries.
The initiative represents a departure from traditional government investment approaches, potentially creating new opportunities for public-private partnerships and strategic acquisitions.
Trump's executive order establishes America's first sovereign wealth fund, marking a significant departure from traditional U.S. economic policy. The fund will be implemented over the next 12 months under the guidance of Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. The initiative positions the United States to compete with established global sovereign wealth funds while potentially acquiring strategic assets like TikTok. The fund's success will depend on its ability to effectively monetize government assets and create sustainable wealth for American citizens through investments in infrastructure, manufacturing, and research development.
