President Donald Trump announced on Monday his intention to establish a sovereign wealth fund, which would consist of assets located in foreign countries and be utilized to provide regular financial assistance to the general populace. Specific details regarding the operational mechanisms of this fund were not immediately disclosed. The announcement was made during a formal executive-order signing ceremony held in the Oval Office. Trump had previously mentioned the concept of creating such a fund during his 2024 presidential campaign.
During the event, Treasury Secretary Scott Bessent delivered concise remarks outlining the nature of the proposed fund. He explained that it would be a combination of liquid assets along with assets currently held within the country, emphasizing the effort to make these resources available for the benefit of American citizens. Bessent further highlighted the potential for generating value through the substantial activities and transactions conducted by the U.S. government in collaboration with various companies. He suggested that leveraging these interactions, such as through acquiring equity stakes in entities supplying essential goods like Covid vaccines, could lead to long-term growth and prosperity for the American population.
In addition to Bessent’s contributions, Trump revealed that Commerce Secretary Howard Lutnick would play a vital role in the establishment of the fund, a process which could extend over the course of a year. Lutnick hinted at the fund’s potential involvement in a bid to take control of the social media platform TikTok, although the specifics of such a venture were not elaborated upon.
Notable examples of existing sovereign wealth funds around the globe were mentioned, with Norway highlighted as having the largest such fund globally. Funded primarily by oil revenues, Norway’s sovereign wealth fund invests in various assets like stocks, resulting in a substantial net worth equivalent to approximately $325,000 per Norwegian citizen. Other countries with significant sovereign wealth funds include China, Saudi Arabia, Australia, Iran, and Russia, while certain U.S. states like Alaska and Texas also manage state-run funds.
A study conducted in 2024 by the Carnegie Endowment for International Peace underscored the importance of implementing comprehensive safeguards within sovereign wealth funds to prevent potential misuse. The study warned that in the absence of robust governance and regulatory structures, these funds could become channels for illicit activities such as corruption and money laundering.
