While much of the recent economic discourse has been dominated by tariff debates, one of President Donald Trump’s most ambitious and potentially transformative proposals has received far less attention: the creation of a U.S. sovereign wealth fund.
Globally, sovereign wealth funds (SWFs) have long been leveraged as powerful financial instruments. As of June 2024, there were over 90 sovereign wealth funds worldwide, collectively managing more than $12 trillion in assets. These funds have played a significant role in shaping global investment trends, stabilizing national economies, and extending geopolitical influence.
Trump’s Business Acumen in Action?
While the idea of an American SWF has been debated for years, it took Trump—a businessman at heart—to translate the concept into concrete policy. Some speculate that Jared Kushner and key figures from private equity circles may have played a role in shaping this initiative.
A properly structured US-SWF could enable the government to strategically leverage its vast resources, including:
Federal land holdings
Infrastructure assets
Intellectual property and patents
By investing these assets in profitable, revenue-generating ventures, the fund could help the U.S. transition from a debtor nation to a more self-sustaining, investment-driven economy.
Governance and Transparency: Critical Success Factors
For this initiative to succeed, governance, oversight, and transparency must be prioritized. The fund should be subject to congressional approval, regular audits, and bipartisan oversight to prevent mismanagement and ensure its alignment with national interests.
Historically, the reluctance of previous administrations—including that of Joe Biden—to establish a sovereign wealth fund stemmed from concerns about government overreach in private markets. However, multiple U.S. states, such as Alaska and Texas, have successfully operated their own sovereign wealth funds, using proceeds to fund education, infrastructure, and public services.
Lessons from Saudi Arabia’s Investment Playbook
Perhaps no one in Trump’s inner circle understands the potential of sovereign wealth funds better than Jared Kushner, whose $2 billion deal with Saudi Arabia’s Public Investment Fund (PIF) highlighted the power such funds wield on the global stage.
Saudi Arabia’s PIF serves as an illustrative model, having transformed into a financial powerhouse with stakes in technology, sports, entertainment, energy, and infrastructure. One of its most high-profile plays was its stunning takeover of professional golf through its controversial merger with the PGA Tour.
If structured effectively, a U.S. sovereign wealth fund could serve as a counterweight to foreign SWFs, ensuring that America remains a dominant player in global economic affairs rather than ceding financial influence to foreign governments.
A Strategic and Diplomatic Tool
Beyond financial gains, a strong U.S. sovereign wealth fund could be a powerful geopolitical instrument. It could:
Finance strategic infrastructure projects in key global regions
Reduce reliance on foreign capital markets, strengthening U.S. economic independence
Expand U.S. influence in emerging markets, countering the financial strategies of nations like China, Saudi Arabia, and Norway, which use their SWFs to gain economic leverage.
A Game-Changer—If Done Right
With the right leadership, bipartisan cooperation, and a clear investment mandate, a U.S. sovereign wealth fund could reshape America’s financial future. It has the potential to serve as a long-term economic stabilizer, an investment powerhouse, and a diplomatic lever for U.S. interests worldwide.
However, for this vision to succeed, rigorous oversight and strategic planning will be essential. If mismanaged, the fund risks becoming a political lightning rod or a financial liability rather than the economic juggernaut it promises to be.
The question remains: Will Trump’s sovereign wealth fund truly "Make America Great Again," or will it face the same fate as previous unrealized economic ambitions?
