Trump Signs Executive Order for U.S. Sovereign Wealth Fund -

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Washington, D.C. – February 3, 2025: On Monday, President Donald Trump signed an executive order to establish a government-run sovereign wealth fund aimed at driving economic development in the U.S. and enhancing its global influence.

The fund will focus on infrastructure projects like airports and highways, and potentially serve as a tool for U.S. investment in international projects such as in Panama and Greenland. Treasury Secretary Scott Bessent emphasized that the fund’s goal is to “monetize the asset side of the U.S. balance sheet,” with assets both domestic and abroad being used for the benefit of the American people.

While the order provides few details, Trump hinted that the fund could be used for purchasing assets like the social media platform TikTok, which has faced security scrutiny. A temporary order allowing TikTok back online for 75 days could lead to a U.S.-backed partnership if Chinese interests are divested.

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Sovereign wealth funds have long been used by nations with abundant natural resources and fiscal surpluses, such as China, Norway, and Singapore. The U.S., however, has been running significant budget deficits, making it unique in considering such a fund. Critics warn that without proper governance and transparency, sovereign wealth funds can foster corruption and conflicts of interest.

The fund is set to support fiscal sustainability, reduce the tax burden on Americans, and ensure economic security for future generations while enhancing U.S. leadership internationally. Within the next 90 days, Bessent and Commerce Secretary nominee Howard Lutnick are tasked with developing a strategy for the fund’s operation.