Trump signed an executive order Monday ordering the U.S. Treasury and Commerce departments to create the fund.
Treasury Secretary Scott Bessent hailed the idea of a sovereign wealth fund. “We’re going to stand this thing up within the next 12 months. We’re going to monetize the asset side of the U.S. balance sheet for the American people,” he told reporters. “There’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people.”
“A sovereign wealth fund is a worthy idea in theory, but the United States is poorly positioned to create one because it’s $35 trillion in debt, requiring annual payments of $1 trillion just to cover the interest, and running an annual budget deficit of $1.5 trillion,” Timothy Noah reported for The New Republic in September.
There are approximately 90 sovereign wealth funds around the globe, with more than $8 trillion in total assets, according to data from the International Forum of Sovereign Wealth Funds. Sixty percent of those are funded by natural resource revenues.
Trump has promised to restore TikTok access to the American market, despite a congressional ban, a decision to uphold the ban by the Supreme Court, and contestations from some of his allies in the legislative branch who would like to keep the popular video-sharing app offline. After entering office, Trump signed an executive order to delay the ban by 75 days—a window accounted for within the ban so long as the company is pursuing a sale.
In January, Trump stipulated that the company’s divestment from its Chinese-owned parent company, ByteDance, would also have to result in the U.S. gaining an ownership stake in the app.
But other options remain should TikTok never return. When the Indian government pulled the plug on the social media app due to a violent feud with China on their shared border, TikTok dropped its 200 million users. In the app’s wake, companies with format competitors to TikTok, including Youtube and Instagram, absorbed many of TikTok’s influencers onto their own platforms.
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