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Prices and the Economy
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Response Center

Real-time analysis of Trump-Vance administration actions, to support legal challenges and provide resources for the pro-democracy community.

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The Trump-Vance Administration is trying to

Create a sovereign wealth fund that could enable corporate favoritism

Let others know:

https://democracy2025.org/response-center/IGVPfA

What we know

This order calls on the Secretary of the Treasury and the Secretary of Commerce to develop a plan to establish a sovereign wealth fund.

Formal Name

A Plan for Establishing a United States Sovereign Wealth Fund

Status
Underway
Formal Identifier

February 3, 2025

Anticipated Impact

This order calls on the Secretary of the Treasury and the Secretary of Commerce to develop a plan within three months to create a government-owned investment fund. The order directs the secretaries to investigate possible funding mechanisms, investment strategies, and governance models. We do not know how the fund will obtain money, as sovereign wealth funds are typically created by countries with little to no debt and which make an income from their country's natural resources. We also do not know what the plan is for the sovereign wealth fund, though President Trump suggested that it might be used to purchase TikTok. Without safeguards, sovereign wealth funds can be tools of corruption and conflicts of interest. This order is likely to continue to grow the role of the federal government in the economy, allowing Trump and his personal allies to use government money to support corporations they like at the expense of other Americans.

By the Numbers

Partner Analysis

People are fighting back

How communities are responding

Democracy 2025 and our partners are ready to counter threats to people's rights, justice, and equality in courtrooms and communities across the country. Learn more about how people and communities are responding to this harmful policy:

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Help us counter unlawful, anti-democratic actions from the Trump-Vance administration and protect people, freedom, and justice.

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