“We have tremendous potential,” President Donald Trump told reporters in the Oval Office on Monday as he announced the executive action to establish a sovereign wealth fund for the United States.
He emphasized that the move aligns with his vision for strengthening the country’s financial standing and maximizing economic opportunities.The president stated that the directive would task Treasury Secretary Scott Bessent and Howard Lutnick, his nominee for Commerce Secretary, with leading the initiative.
Their role will involve structuring the fund, determining its sources of capital, and outlining its long-term objectives.Bessent, who stood beside Trump during the announcement, underscored the significance of the effort, stating that the sovereign wealth fund would be developed over the next 12 months. He described it as a matter “of great strategic importance,” highlighting its potential to enhance the nation’s economic resilience and global financial influence.
The plan calls for funding sources, investment strategies, governance, and legal considerations, including potential legislation.Trump advisers have discussed using the US International Development Finance Corp. to collaborate with major institutions and enhance US economic influence.
Elon Musk and Stephen Feinberg, Trump’s nominee for deputy defense secretary, are key figures pushing to use the DFC as a sovereign fund and reshape US foreign aid strategy.Officials must submit a 90-day plan on funding, investments, governance, and legal requirements for the sovereign wealth fund.
Trump advisers discussed using the US International Development Finance Corp. (DFC) to partner with major institutions. Elon Musk and Stephen Feinberg, Trump’s deputy defense secretary nominee, support using the DFC as a sovereign fund and foreign aid tool.Trump nominated Ben Black to lead the DFC.
He first proposed the fund in September, suggesting tariff revenues could support manufacturing, defense, and medical research. Wall Street leaders may help advise on investments.The fund enabled North Dakota’s plan to phase out property taxes for homeowners in the next decade.Trump delayed tariffs on Mexico and Canada due to their actions against fentanyl trafficking and illegal migration.
