U.S. Government May Buy TikTok Under Trump’s New Wealth Fund

The fund would seek to monetize U.S. assets for the benefit of American citizens.

U.S. Government May Buy TikTok Under Trump’s New Wealth Fund
Photo of U.S. President Donald Trump by rawpixel.

WASHINGTON, Feb. 3, 2025 – President Donald Trump signed an executive order Monday to create the United States’ first sovereign wealth fund, which he suggested could be used to acquire TikTok as one of its initial investments.

The move comes as the Chinese-owned social media platform faces a 75-day deadline to divest from its Chinese interests or risk being taken offline in the U.S. again due to national security concerns.

The sovereign wealth fund could facilitate this divestment by purchasing a stake in TikTok, thereby reducing Chinese ownership and increasing U.S. control over the platform.

Beyond TikTok, the fund was intended as an economic development tool, with potential investments in infrastructure projects like airports and highways, as well as geopolitical ventures in regions such as Panama and Greenland, Trump said. Broadband deployment was not included as an investment in early reports out of the White House.

Treasury Secretary Scott Bessent and Howard Lutnick, Trump’s pick for Commerce Secretary, were leading the initiative, with Bessent stating that the fund should be operational within 12 months and financed by monetizing U.S. assets, though details remain unclear. Trump has previously suggested tariffs as a funding source.

While sovereign wealth funds are common in countries with budget surpluses and abundant natural resources, such as Norway and China, the U.S. has been running significant budget deficits. Norway has the largest fund with $1.8 trillion in assets, which is about the size of the entire Australian economy.

Proponents argue that the fund could enhance economic competitiveness and reduce reliance on Treasury debt, while critics raise concerns about transparency, governance, and the practicality of funding the initiative given the current fiscal landscape.

This move reflects a rare point of agreement between President Trump and former President Joe Biden, both of whom have advocated for the creation of a U.S. sovereign wealth fund as a means to invest in national projects and address economic challenges.

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