Trump Announces Executive Order for US Sovereign Wealth Fund, Potentially Targeting TikTok
President Donald Trump has signed an executive order mandating the creation of a sovereign wealth fund within the next year, hinting that the fund could be used to acquire the popular short video app TikTok, Al Jazeera reports.
Speaking on Monday, Trump provided limited details about the proposed fund, leaving many questions unanswered regarding its structure and operation. Typically, sovereign wealth funds rely on budget surpluses for investment, a scenario currently not applicable to the US, which operates at a deficit. The creation of such a fund would also likely require Congressional approval.
Trump previously proposed a similar government investment vehicle during his presidential campaign, envisioning it as a mechanism to finance “great national endeavors” such as infrastructure projects, manufacturing, and medical research.
Administration officials have remained tight-lipped regarding the fund’s specific mechanics and financing sources. However, Trump has previously suggested that tariffs and other “intelligent things” could provide the necessary capital.
Treasury Secretary Scott Bessent told reporters that the fund would be established within the next 12 months, emphasizing its focus on monetizing US assets for the benefit of the American people.
“We’re going to monetize the asset side of the US balance sheet for the American people,” Bessent stated. “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.”
Notably, reports from The New York Times and Financial Times indicate that former President Joe Biden’s administration also explored the possibility of establishing a similar fund prior to Trump’s election in November.
