President Donald Trump has signed an executive order directing the establishment of a US sovereign wealth fund within the next year. The order mandates that the Treasury and Commerce Departments develop a plan within 90 days, detailing funding mechanisms, investment strategies, fund structure, and governance models, Reuters reported.
Trump indicated that the fund could be used to acquire assets such as the social media platform TikTok, stating, “We’re going to create a lot of wealth for the fund.” Treasury Secretary Scott Bessent aims to set up the fund within 12 months, focusing on monetising US assets. The US currently operates at a budget deficit, raising questions about funding sources for the proposed fund. Trump has previously suggested that revenues from tariffs and other sources could be utilised. The creation of such a fund would likely require congressional approval.
Globally, over 90 sovereign wealth funds manage assets exceeding $8 trillion. The US fund could be modelled after existing funds in countries like Norway and those in the Middle East. The administration has not provided specific details on how the fund would operate or be financed. The proposal follows similar considerations by the previous administration for strategic investment purposes.
