President Trump has signed an executive order to create a sovereign wealth fund that could be utilized for government initiatives and investments, potentially including the acquisition of TikTok.
On Monday, President
Donald Trump signed an executive order instructing the U.S. Treasury and Commerce departments to begin the process of establishing a sovereign wealth fund.
Treasury Secretary Scott Bessent anticipates that the fund could be operational within a year, with the aim of financing significant government projects and strategic investments, particularly in critical areas like supply chains.
Trump indicated that the fund may be utilized for large infrastructure initiatives, such as highways and airports, as well as for investments in advanced defense capabilities and medical research.
The president mentioned the potential of using the fund to assist in acquiring TikTok, suggesting it could involve either a direct purchase or a collaboration with affluent individuals.
While he did not provide specific details, he stressed that the arrangement would need to be made correctly.
Previously, Trump has talked about a joint venture where the U.S. would acquire a 50 percent stake in TikTok, although this suggestion has raised concerns about its legality.
Alongside these possible investments, Trump's nominee for Commerce Secretary, Howard Lutnick, proposed that the sovereign wealth fund could also invest in companies with substantial government contracts, including those involved in
COVID-19
vaccine production.
This initiative follows similar discussions among Democrats, who have also contemplated the establishment of a sovereign wealth fund.
Sovereign wealth funds are large capital pools owned by governments that have played a key role in funding investments around the world, especially in the Middle East and Europe.
However, uncertainties persist regarding how the timeline for the new U.S. fund coincides with ongoing efforts to address TikTok's status, which is currently under scrutiny due to national security issues.
The White House has yet to release additional information regarding the executive order.