President Donald Trump has signed an executive order to create a sovereign wealth fund for the United States. The U.S. Treasury and Commerce Departments will be in charge of its formation, the President said Monday.

“We have tremendous potential,” Trump told reporters in the Oval Office on Monday as he announced the move. The president said the action would charge Treasury Secretary Scott Bessent and Howard Lutnick, the nominee for Commerce secretary, with launching the effort.

The text of the document Trump signed was not immediately available, and it’s unclear how the wealth fund — which Trump pledged on the campaign trail would be “the greatest sovereign wealth fund of them all” — would be funded.

What is a Sovereign Wealth Fund?

Sovereign wealth funds are state-owned investment funds that, like traditional investment funds, can invest in stocks, real estate, bonds, hedge funds, and more, building up a pool of money that can be used to insulate the government and its people from economic stressors. The U.S. is already familiar with sovereign wealth funds at the state level. States such as Texas, New Mexico, and Alaska own multibillion-dollar funds centered around real estate, education, and oil drilling.

Trump first pitched the idea of a sovereign wealth fund during an address at the Economic Club of New York in September. He proposed funneling money from tariffs into a wealth fund that could invest in manufacturing hubs, defense, and medical research. “We will create America’s own sovereign wealth fund to invest in great national endeavors for the benefit of all the American people,” Trump said at the time.

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Furthermore, President Trump also suggested a possible deal with TikTok, having the wealth fund purchase the popular social media platform. In January, TikTok briefly went dark in the U.S., with a ban on the platform hitting the nation. However, the platform made a return, crediting Trump with halting the ban and bringing TikTok back. There are still security concerns on a federal level around the platform, which is why regulators were looking for a US buyer of the app.

Former US President Joe Biden also crafted a proposal for developing such a fund. His fund would be invested in national security interests, including technology, energy, and critical links in the supply chain. However, it never made it off the ground.


  • Donald Trump
  • Executive Orders