On February 3, 2025, President Donald Trump signed an executive order to establish the United States’ first sovereign wealth fund, aiming to enhance national wealth and benefit American citizens. He suggested that this fund could potentially be used to acquire assets like TikTok, the popular social media platform.
Sovereign wealth funds are state-owned investment vehicles that manage national assets to achieve financial objectives. Countries such as Norway, China, and several Middle Eastern nations have successfully utilized these funds to bolster their economies. The U.S. initiative seeks to emulate and eventually surpass these models, strengthening America’s economic influence globally.
The executive order directs the Treasury and Commerce Departments to develop a comprehensive plan within 90 days, detailing funding mechanisms, investment strategies, and governance structures for the fund. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are leading this effort, with the goal of operationalizing the fund within the next 12 months.
President Trump has previously indicated that revenues from tariffs and other innovative strategies could finance the fund. He emphasized the potential of the fund to generate substantial wealth, stating, “In a short period of time, we’d have one of the biggest funds… We’re going to create a lot of wealth for the fund.”
The proposed U.S. sovereign wealth fund could serve multiple purposes, including investing in infrastructure, medical research, and other national priorities. Additionally, it may facilitate strategic acquisitions, such as the potential purchase of TikTok, aligning with broader economic and security objectives.
This initiative reflects a significant shift in U.S. economic policy, aiming to leverage national assets to create long-term value and enhance the country’s economic standing on the global stage.
