The executive order does not provide specific details but directs the Treasury and Commerce Departments to submit a plan within 90 days outlining:
🔹 Funding mechanisms
🔹 Investment strategy
🔹 Fund structure
🔹 Governance model
Unlike most sovereign wealth funds, which rely on budget surpluses, the U.S. operates under a deficit, meaning Congress may need to approve the fund's creation.
“We will generate a lot of wealth with this fund,” Trump told reporters. “And I think it’s time for this country to have a national investment fund.”
Trump previously proposed a similar government-backed investment mechanism while campaigning, arguing it could fund major national projects, including infrastructure, manufacturing, and medical research.
Funding and Structure Still Unclear
Officials did not specify how the fund would be financed, but Trump has suggested tariffs and other measures could provide funding.
Treasury Secretary Scott Bessent stated the fund will be established within 12 months and will monetize U.S. assets to benefit American citizens.
“We will use a mix of liquid assets and domestic resources to bring economic benefits directly to the American people,” Bessent told reporters.
One option under consideration is restructuring the U.S. International Development Finance Corporation (DFC) to operate like a sovereign wealth fund, Bloomberg reported. The DFC currently funds projects in developing nations through private-sector partnerships.
On January 31, Trump nominated Benjamin Black to lead the agency. Black, a managing partner at Fortinbras Enterprises, is the son of Apollo Global Management co-founder Leon Black.
Reports from The New York Times and Financial Times indicate that the Biden administration had also explored a similar sovereign fund concept before Trump’s election victory in November 2024.
However, funding and governance remain uncertain. Experts believe Congress will likely need to approve new funding sources, given the lack of a budget surplus.
“You can’t create a national investment fund through executive order alone,” said Clemence Landers, a former Treasury official now with the Center for Global Development.
According to the International Forum of Sovereign Wealth Funds, there are over 90 such funds worldwide, managing more than $8 trillion in assets.
Several U.S. states, including Alaska, Texas, and New Mexico, already operate state-level investment funds, often financed through oil, gas, and land revenues.
Trump Hints at TikTok Buyout
In a surprise twist, Trump suggested the National Investment Fund could buy TikTok, which is facing a January 19 deadline to be sold or banned under national security concerns.
Upon taking office on January 20, Trump signed an executive order delaying enforcement of the law for 75 days to allow negotiations.
“I’m talking to a lot of people about TikTok,” Trump said, adding that a decision on the app’s future could come in February.
With 170 million American users, TikTok remains a key target for U.S. policymakers.
“We may do something with TikTok, or we may not,” Trump said. “If we find the right deal, we’ll do it. If not, we won’t. But we could put it into the National Investment Fund.”
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