Key Takeaways
- • Trump signed an executive order on February 3, 2025 directing the Treasury and Commerce secretaries to develop a plan for a U.S. sovereign wealth fund within ninety days, with a joint plan due to the president in May, according to the article.
- • The Carnegie Endowment's Steve Feldstein and Jodi Vittori argue the order is short on detail, which they say leaves the fund's purpose and governance open and could allow broad discretion over investments.
- • The authors cite a fiscal shortfall of $1.15 trillion for fiscal year 2025 and national debt above $36.2 trillion, arguing the U.S. has no surplus to seed a fund.
- • Proposed funding routes, including asset sales of federal property and tariff revenue diverted through a proposed "External Revenue Service," raise concerns about oversight and congressional control of public funds.
- • The authors warn that sovereign wealth funds can enable corruption where governance is weak, citing Saudi Arabia's Public Investment Fund and a $2 billion 2020 investment in Jared Kushner's private equity firm.
Summary
President Donald Trump signed an executive order on February 3, 2025 calling on the Treasury and Commerce secretaries to develop a plan to create a U.S. sovereign wealth fund within ninety days. In a Carnegie Endowment for International Peace article published April 3, 2025, authors Steve Feldstein and Jodi Vittori argue that the order, which spans three paragraphs, is "short on details but heavy on rhetoric." They note that the fund could potentially engage in almost any kind of investment, making it difficult to assess whether it would serve the public interest. Treasury and Commerce owe a joint plan to the president in May, which could define goals or a governance structure.
The authors place the proposal in context. Sovereign wealth funds (SWFs) have grown from about $500 billion in assets in the 1990s to roughly $13.7 trillion today, according to the article. Norway's fund, established in 1990, is the largest and holds about 1.5 percent of listed stocks worldwide. According to the White House, at least twenty-three U.S. states run their own funds with $332 billion in assets. The authors also cite Trump's aggressive dismantling of oversight bodies, including changes at the Securities and Exchange Commission and the Consumer Financial Protection Bureau, as grounds for concern.
Funding is a central question. The authors state that the U.S. runs a fiscal year 2025 deficit of $1.15 trillion and total national debt above $36.2 trillion, so it lacks the resource surpluses that typically fund SWFs. A White House fact sheet pointed to $5.7 trillion in federal assets. On March 4, the General Services Administration briefly published a list of more than 400 government properties for sale, including FBI and Justice Department headquarters, before pulling it after public outcry. The article also flags a proposed "External Revenue Service" that could redirect tariff revenue, which is currently collected by U.S. Customs and Border Protection, away from congressional oversight.
The authors draw on the example of Saudi Arabia's Public Investment Fund, which manages over $925 billion and is overseen by Governor Yasir Al-Rumayyan under the direction of Crown Prince Mohammed bin Salman. In 2020, the PIF invested $2 billion in the private equity firm of Jared Kushner, shortly after Kushner left the White House, despite objections from PIF advisors. The authors cite German Institute for International and Security Affairs analyst Stephan Roll, who writes that such funds let leaders "purchase the loyalty" of political factions. They conclude that without independent oversight, clear mandates and firm rules, a U.S. fund could become a vehicle for rewarding allies and personal enrichment.
The authors place the proposal in context. Sovereign wealth funds (SWFs) have grown from about $500 billion in assets in the 1990s to roughly $13.7 trillion today, according to the article. Norway's fund, established in 1990, is the largest and holds about 1.5 percent of listed stocks worldwide. According to the White House, at least twenty-three U.S. states run their own funds with $332 billion in assets. The authors also cite Trump's aggressive dismantling of oversight bodies, including changes at the Securities and Exchange Commission and the Consumer Financial Protection Bureau, as grounds for concern.
Funding is a central question. The authors state that the U.S. runs a fiscal year 2025 deficit of $1.15 trillion and total national debt above $36.2 trillion, so it lacks the resource surpluses that typically fund SWFs. A White House fact sheet pointed to $5.7 trillion in federal assets. On March 4, the General Services Administration briefly published a list of more than 400 government properties for sale, including FBI and Justice Department headquarters, before pulling it after public outcry. The article also flags a proposed "External Revenue Service" that could redirect tariff revenue, which is currently collected by U.S. Customs and Border Protection, away from congressional oversight.
The authors draw on the example of Saudi Arabia's Public Investment Fund, which manages over $925 billion and is overseen by Governor Yasir Al-Rumayyan under the direction of Crown Prince Mohammed bin Salman. In 2020, the PIF invested $2 billion in the private equity firm of Jared Kushner, shortly after Kushner left the White House, despite objections from PIF advisors. The authors cite German Institute for International and Security Affairs analyst Stephan Roll, who writes that such funds let leaders "purchase the loyalty" of political factions. They conclude that without independent oversight, clear mandates and firm rules, a U.S. fund could become a vehicle for rewarding allies and personal enrichment.
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