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Trump’s Big Move, A U.S. Sovereign Wealth Fund With Eyes On TikTok? Why Set Up A Wealth Fund And How Big Could This Fund Be?
Think of a sovereign wealth fund like a giant investment account owned by a country. The idea is simple: Instead of letting excess money sit idle (or get wasted), a government pools it into a fund that can be used for future economic growth, infrastructure, or even as a safety net for downturns.
In a move that has left economists, investors, and political analysts scratching their heads, U.S. President Donald Trump has signed an executive order to create a sovereign wealth fund within the next year. If this plan materializes, it would put the United States in the same league as countries like Norway, China, and several oil-rich Gulf nations that have used sovereign wealth funds (SWFs) to manage national assets and invest for the future.
What Exactly Is a Sovereign Wealth Fund?
Think of a sovereign wealth fund like a giant investment account owned by a country. The idea is simple – instead of letting excess money sit idle (or get wasted), a government pools it into a fund that can be used for future economic growth, infrastructure, or even as a safety net for downturns.
These funds are designed to create long-term wealth for the nation, unlike pension funds where individuals withdraw money for personal use. A sovereign wealth fund typically focuses on national priorities—whether that means building new airports, investing in cutting-edge technology, or buying stakes in companies that can yield long-term financial benefits.
Currently, there are over 90 sovereign wealth funds worldwide, collectively managing more than $8 trillion in assets. Some of the most notable include Norway’s massive oil-backed fund and China’s multi-trillion-dollar investment juggernaut.
So, How Would the U.S. Fund Be Financed?
Here’s where things get tricky. Most sovereign wealth funds are backed by budget surpluses or revenue from natural resources like oil and gas. But the U.S. has been running budget deficits for years, which means there’s no big surplus to funnel into this fund.
However, Trump’s administration has floated a few ideas, including –
—Monetizing government assets: Essentially, selling or leasing government-owned properties and resources to generate cash.
—-Tariff revenue: Trump has suggested that money earned from tariffs on imports could help fund the project.
—Repurposing existing agencies: Some reports indicate the U.S. International Development Finance Corporation (DFC) could be converted into a sovereign wealth fund, though this would require significant restructuring.
While details are still murky, Treasury Secretary Scott Bessent assured reporters that the goal is to “monetize the asset side of the U.S. balance sheet for the American people.”
Trump’s Idea
U.S. President Donald Trump has also floated the idea that America’s newly proposed sovereign wealth fund could be used to buy TikTok. Yes, you read that right—the same short-video app that has been at the center of national security debates, legal battles, and a political tug-of-war with China.
But before we get to TikTok, let’s talk about the bigger picture.
Trump’s executive order, signed this week, directs the Treasury and Commerce Departments to come up with a plan for establishing the fund within 90 days. The plan must outline how it will be financed, where it will invest, how it will be structured, and what kind of governance model it will follow.
“We’re going to create a lot of wealth for the fund,” Trump confidently told reporters. “And I think it’s about time that this country had a sovereign wealth fund.”
While the idea of a U.S. sovereign wealth fund might sound new, Trump has actually been floating this concept for years. Back in his first presidential campaign, he suggested that such a fund could be used to finance “great national endeavors” like infrastructure, manufacturing, and medical research. It was framed as a way to reinvest in America’s future, boosting key sectors and promoting long-term growth. Now, it appears he’s serious about making it happen.
However, setting up a sovereign wealth fund isn’t as simple as signing an executive order. Many experts, including former Treasury officials, argue that Congress would need to approve the funding mechanisms. Clemence Landers from the Center for Global Development pointed out, “Obviously, you can’t establish an institution by executive order—and more to the point, you can’t fund an institution by executive order.”
How Big Could America’s Sovereign Wealth Fund Be?
While Trump hasn’t given a specific number yet, he did hint at an ambitious target. Back in September, he suggested that the U.S. sovereign wealth fund should aim for—or even exceed—$2 trillion.
Other major sovereign wealth funds come from countries like Abu Dhabi, Kuwait, Saudi Arabia, and Singapore, all of which hold between $801 billion and $1.06 trillion in assets. If Trump’s fund reaches his $2 trillion goal, it could place the U.S. in the league of the world’s largest investment vehicles.
For now, details remain scarce, but one thing is can be surely said—if this fund comes to life, it won’t just be another government program—it could be a game-changer in global finance. Whether it will actually work or simply be another grand Trump idea that fades away, only time will tell.
