President Donald J. Trump Orders Plan for a United States Sovereign Wealth Fund

Sovereign Wealth Funds generally are state-owned investment funds, often funded by revenues from commodity exports or budget surpluses, investing globally to benefit the country’s economy, secure future generations’ financial stability, or fund social programs.

• Provide a long-term investment vehicle for the U.S. government, potentially reducing reliance on debt financing.
• Help address fiscal challenges by creating a pool of assets that could be used for national projects or social welfare.
• Offer a strategy to manage the “reserve currency resource curse,” balancing global financial flows.

In the U.S. context, proposals for a national SWF have included funding mechanisms like tariffs, monetizing government assets, or even using it as a tool to manage national debt or invest in infrastructure. (Grok)

BREAKING: Donald Trump has just signed an executive order establishing the first-ever United States strategic sovereign wealth fund! #XRP pic.twitter.com/6pSGh2SJdd

— JackTheRippler © (@RippleXrpie) February 3, 2025

DELIVERING A PLAN TO CREATE A UNITED STATES SOVEREIGN WEALTH FUND: Today, President Donald J. Trump signed an Executive Order calling for the creation of a Sovereign Wealth Fund.

• The Executive Order directs the Secretary of the Treasury and the Secretary of Commerce to deliver a plan within 90 days for the creation of a sovereign wealth fund.
  • The Secretary of the Treasury and the Secretary of Commerce will work closely with the Director of the Office of Management and Budget and the Assistant to the President for Economic Policy to develop the plan.
  • The Order directs the Secretary to include in the plan recommendations for funding mechanisms, investment strategies, fund structure, and a governance model.

ENSURING LONG-TERM ECONOMIC COMPETITIVENESS AND FISCAL SUSTAINABILITY: The creation of a sovereign wealth fund for the United States will help maximize the stewardship of our national wealth.

• Sovereign wealth funds exist around the world as mechanisms to amplify the financial return to a nation’s assets and leverage those returns for strategic benefit and goals.
  • The United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote U.S. economic and strategic leadership internationally.
• The United States already holds a vast sum of highly valued assets that can be invested through a sovereign wealth fund for greater long-term wealth generation.
  • The Federal government directly holds $5.7 trillion in assets. Indirectly, including through natural resource reserves, the Federal government holds a far larger sum of asset value.

PURSUING NATIONAL ENDEAVORS AND MAGNIFYING ECONOMIC GROWTH: President Trump has called for the creation of a sovereign wealth fund “to invest in great national endeavors for the benefit of all of the American people.”

• President Trump’s economic policies—including the pursuit of fair and balanced trade, national energy dominance, and tax and regulatory relief to spur robust economic growth—will result in greater wealth and revenue streams that a sovereign wealth fund can maximize the potential of.
• Sovereign wealth funds are maintained by a diverse array of countries leveraging equally varied classes of national assets. President Trump has called for a sovereign wealth fund to ensure the United States can lead the way in long-term wealth generation.
  • The United Kingdom recently announced their own plans to pursue development of such a fund.
  • In addition to countries around the world maintaining their own funds, 23 states within our own country maintain their own funds that control in total $332 billion in assets.