Trump signs executive order to establish a US sovereign wealth fund

Trump Orders Creation of U.S. Sovereign Wealth Fund, Eyes TikTok Purchase

President Donald Trump signed an executive order on Monday directing the Treasury and Commerce Departments to establish a sovereign wealth fund—a move he suggested could also be used to acquire social media platform TikTok.

A Sovereign Fund for the U.S.?

A sovereign wealth fund operates as a government investment fund, typically financed by surplus revenues or state-owned assets. Unlike the Federal Reserve or the Treasury Department, it would function independently.

Few specifics were provided about how the U.S. fund would be financed, as it would require Congressional approval.

"We have tremendous potential," Trump said from the Oval Office. "I think in a short period of time, we’d have one of the biggest funds."

Key Players Leading the Initiative

Trump named Treasury Secretary Scott Bessent and Howard Lutnick, his nominee for Commerce Secretary, to oversee the project.

"We’re going to stand this thing up within the next 12 months," Bessent told reporters. "We are going to monetize the asset side of the U.S. balance sheet for the American people."

Global and State-Level Precedents

Over 100 countries currently operate sovereign wealth funds, including China, Saudi Arabia, and the UAE. In the U.S., 20 states maintain sovereign funds, with Alaska’s Permanent Fund valued at over $80 billion in 2024.

Saudi Arabia’s fund has faced scrutiny for its investments in Silicon Valley, with critics arguing it serves as a tool for foreign influence despite the country’s human rights record.

Trump’s Vision for the Fund

Trump floated the idea during his campaign, suggesting in September that revenues from tariffs and other economic policies could finance the fund.

"We’ll have the greatest sovereign wealth fund of them all," he declared at the time.

Congressional Uncertainty

It remains unclear how lawmakers will respond. While Congress must approve the fund’s creation, it would have limited oversight once established.