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President Trump Begins Establishment of U.S. Sovereign Wealth Fund with Possible TikTok Purchase
An executive order requires the establishment of a national investment fund; deliberations are ongoing regarding the future ownership of TikTok.
On Monday, President Donald Trump issued an executive order instructing the U.S. Treasury and Commerce Departments to set up a sovereign wealth fund within the coming year.
This fund might explore the option of acquiring a share in TikTok, the widely-used social media app owned by China's ByteDance.
The administration has established a deadline of early April for TikTok to find an approved partner or buyer, with the possibility that the U.S. government could hold a 50% ownership interest in the platform.
Sovereign wealth funds usually invest in various assets like stocks, bonds, and real estate, often sourced from budget surpluses.
However, the United States does not currently have such surpluses.
President Trump has indicated a goal for the U.S. fund to eventually match the size of Saudi Arabia's sovereign wealth fund.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been assigned the task of developing the framework for this fund, which will need congressional approval.
The administration intends to launch the fund within a year and is exploring investments in areas such as vaccine manufacturing.
At present, the U.S. has more than 20 state-level sovereign wealth funds, funded by income from oil, gas, and minerals.
This fund might explore the option of acquiring a share in TikTok, the widely-used social media app owned by China's ByteDance.
The administration has established a deadline of early April for TikTok to find an approved partner or buyer, with the possibility that the U.S. government could hold a 50% ownership interest in the platform.
Sovereign wealth funds usually invest in various assets like stocks, bonds, and real estate, often sourced from budget surpluses.
However, the United States does not currently have such surpluses.
President Trump has indicated a goal for the U.S. fund to eventually match the size of Saudi Arabia's sovereign wealth fund.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been assigned the task of developing the framework for this fund, which will need congressional approval.
The administration intends to launch the fund within a year and is exploring investments in areas such as vaccine manufacturing.
At present, the U.S. has more than 20 state-level sovereign wealth funds, funded by income from oil, gas, and minerals.
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