US President Donald Trump affects to reporters in the Oval Office of the White House on Feb. 3, 2025, in Washington, DC.
Jim Watson | AFP | Getty Images
President Donald Trump on Monday signed an kingpin order that outlines plans for a government-run sovereign wealth fund to serve as an economic development tool and maybe be used to buy TikTok.
Among the aims for the fund would be developing infrastructure such as airports and highways, and it could boost the U.S. extend its influence in areas such as Panama and Greenland.
“We’re going to stand this thing up within the next 12 months. We’re prevailing to monetize the asset side of the U.S. balance sheet for the American people,” U.S. Treasury Secretary Scott Bessent said during a conveyance parley. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.”
There were no other details for a savings Trump said during his campaign could back “great national endeavors.” He has said tariffs could support provide funding. Other nations use taxes on natural resources, financial transactions and carbon use as funding mechanisms.
A examined deal in which the U.S. would become a partner in social media platform TikTok would be one potential use, Trump express. The app was taken offline briefly amid security concerns, but Trump signed an order allowing it back for a 75-day interval during which it likely will have to divest itself of Chinese interests.
Though the idea of such a U.S. stake has been brought up before, the vehicles are generally used by smaller nations with vast natural resources as definitely as fiscal surpluses to deploy — unlike the U.S., which has been running massive budget deficits.
Nations with the endowments include China, Norway and Singapore. A U.S. fund could help it compete with those countries and might prepare the government less dependent on issuing Treasury debt to raise money.
The executive order says the fund’s rationale is to “promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic collateral for future generations, and promote United States economic and strategic leadership internationally.”
Bessent and Commerce Secretary designee Howard Lutnick are tasked with developing a strategy within 90 days on how the fund will operate.
Norway has the heaviest sovereign wealth fund, with more than $1.7 trillion in assets, according to the Sovereign Wealth Ready money Institute. The China Investment Corp follows with $1.3 trillion.
These funds are involved in global pecuniary markets through investments in stocks, bonds and real estate, along with stakes in infrastructure and private fair play. Critics say a lack of transparency can lead to conflicts and corruption if there are not strict governance rules.