Trump Calls for US Sovereign Wealth Fund, Suggests TikTok Ownership

On Monday, President Donald Trump signed an executive order directing the United States government to take initial steps toward establishing a government-owned investment fund. Trump suggested that this fund, often referred to as a sovereign wealth fund, could be used to generate financial gains for the U.S. government, particularly by acquiring a stake in TikTok if efforts to secure an American buyer for the platform are successful.

This move follows a previous executive order signed by Trump on his first day back in office, which set a deadline for TikTok to find a U.S.-approved buyer or business partner by early April. However, Trump has made it clear that he envisions a more significant role for the U.S. government in the deal, expressing his desire for America to secure a 50% ownership stake in the highly popular social media platform.

Speaking from the Oval Office on Monday, Trump pointed to TikTok as a prime example of an asset that could be placed within the proposed sovereign wealth fund. The platform is currently owned by the Chinese tech company ByteDance, and its ownership has been a topic of national security and economic debate in the U.S. for years.

“We might put that in the sovereign wealth fund—whatever we make or we do a partnership with very wealthy people. There are a lot of options,” Trump explained, referring to TikTok’s potential inclusion in the fund. “But we could put that as an example in the fund. We have a lot of other things that we could put in the fund.”

Trump’s comments suggest that, beyond TikTok, his administration is considering a broader strategy of leveraging valuable assets and business ventures to build a sovereign wealth fund that could generate long-term financial returns for the U.S. government. The specifics of how this fund would operate, what assets it might include, and how the government would participate in investments remain unclear. However, Trump’s remarks indicate that he sees this initiative as a major economic move with multiple possibilities.

Sovereign wealth funds are government-owned investment funds that allocate capital into various assets, including stocks, bonds, and real estate, with the goal of generating long-term financial returns. These funds are typically financed by a country’s budgetary surpluses—excess government revenues that are set aside for investment rather than being spent on immediate expenses. However, the United States currently operates under a significant budget deficit, meaning it lacks the surplus funds that usually serve as the financial foundation for such an investment vehicle.

Despite this challenge, former President Donald Trump remains optimistic about the potential of establishing a U.S. sovereign wealth fund. He pointed out that many other nations, including economic powerhouses and resource-rich countries, have successfully created and maintained such funds. Trump went even further, expressing confidence that if the U.S. were to develop its own version, it could eventually grow to rival and surpass even the world’s largest sovereign wealth funds.

In particular, he referenced Saudi Arabia’s sovereign wealth fund, which is among the most substantial globally, fueled largely by the country’s vast oil revenues. Trump predicted that over time, the U.S. sovereign wealth fund could expand to match or exceed Saudi Arabia’s in size and influence.

“Eventually, we’ll catch it,” he stated, suggesting that with the right strategy and investments, the U.S. could position itself as a dominant player in global wealth management. His remarks indicate a long-term vision in which the U.S. government not only participates in high-value investments but also leverages them to strengthen national finances and economic influence.

Sovereign wealth funds are a major force in the global financial landscape, with over 90 such funds collectively managing more than $8 trillion in assets worldwide. This data comes from The International Forum of Sovereign Wealth Funds, a London-based organization that represents approximately 50 of these entities. These funds, established by governments, are designed to invest in a wide range of assets, including stocks, bonds, and real estate, often with the goal of preserving and growing national wealth over the long term.

While the United States does not currently have a national sovereign wealth fund, more than 20 similar investment funds operate at the state level. According to research from the Center for Global Development, a Washington-based nonpartisan think tank, these state-run funds function similarly to their international counterparts but are primarily focused on generating revenue for specific local needs.

The largest and most well-known state-level sovereign wealth funds in the U.S. are based in Alaska, New Mexico, and Texas. These funds are predominantly financed through revenue generated from natural resources such as oil, gas, and minerals. Rather than being funneled directly into general government spending, the money accumulated by these funds is often used to support in-state programs, including education, infrastructure, and public services.

Despite being government-owned, these funds typically operate as independent financial institutions with their own investment strategies, management teams, and governance structures. This autonomy allows them to make investment decisions based on long-term financial goals rather than short-term political considerations. The existence of these funds at the state level demonstrates how sovereign wealth-style investment models are already being used within the U.S., even in the absence of a federally managed fund.

President Donald Trump has placed Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick in charge of spearheading efforts to establish a U.S. sovereign wealth fund. Their responsibilities include laying the groundwork for the fund’s creation, which would likely require congressional approval before it could be implemented.

According to the executive order Trump signed, Bessent and Lutnick must develop a comprehensive plan outlining the fund’s structure, investment strategies, and governance model. This plan must be presented to the president within 90 days. The initiative represents one of Trump’s major economic proposals early in his term, aiming to leverage government-backed investments to generate financial returns for the country.

The idea of a sovereign wealth fund is not entirely new to U.S. policymakers. Under the previous administration, former President Joe Biden’s team had explored the possibility of establishing such a fund, particularly as a tool for national security-related investments. However, those discussions never resulted in concrete action before Biden left office last month.

Bessent expressed confidence in the administration’s ability to move quickly, stating that the goal is to have the fund operational within the next 12 months. Meanwhile, Lutnick suggested that beyond potential investments like TikTok, the fund could also be used to acquire profit-generating stakes in major industries. He specifically mentioned vaccine manufacturers as an example of how the U.S. government could benefit financially from its business relationships with private companies.

“The extraordinary size and scale of the U.S. government and the business it does with companies should create value for American citizens,” Lutnick told reporters. His remarks suggest that the administration views the sovereign wealth fund not just as a financial instrument but as a way to capitalize on the government’s economic influence and partnerships with the private sector.

TikTok was originally set to be banned in the United States last month under a federal law requiring its China-based parent company, ByteDance, to either divest its stakes in the platform or face a nationwide prohibition. The legislation, which received strong bipartisan support in Congress, was passed in April and subsequently signed into law by then-President Joe Biden.

However, the law faced immediate legal challenges from both ByteDance and a group of TikTok users who opposed the forced divestiture. Despite these efforts, the statute was upheld by the U.S. Supreme Court last month, effectively clearing the way for its enforcement.

Upon taking office, President Donald Trump, who had previously attempted to ban TikTok during his first term, took a different approach. He directed the Justice Department to temporarily pause enforcement of the law for 75 days, providing ByteDance with additional time to negotiate a deal that would satisfy U.S. regulatory concerns. This delay has allowed potential buyers to explore acquisition options for TikTok’s U.S. operations.

A number of prominent investors have publicly expressed interest in acquiring TikTok’s U.S. platform. Among them are billionaire businessman Frank McCourt and former Treasury Secretary Steven Mnuchin, both of whom have stated their willingness to purchase the social media giant. Trump has also revealed that several other interested parties have privately reached out to him regarding a potential acquisition. Last week, he specifically named Microsoft as one of the major U.S. companies considering making a bid for TikTok.

In addition to these individual investors and corporations, a San Francisco-based artificial intelligence startup, Perplexity AI, has put forward a unique proposal to ByteDance. According to a source familiar with the matter who spoke with the Associated Press, Perplexity AI’s plan would create a new entity merging TikTok’s U.S. operations with its own business. Under this arrangement, the U.S. government would be allowed to acquire up to a 50% ownership stake in the newly formed company.

The proposed deal also envisions an initial public offering (IPO) of at least $300 billion, which would further enable the U.S. government to hold a significant financial interest in the company once it goes public. If successful, this arrangement could provide an alternative path for TikTok to comply with U.S. regulations while also integrating government-backed ownership into the platform’s future.