Senior advisors have presented President Trump with a strategy to establish a state-administered investment fund, which he requested earlier this year—however, certain aspects of the proposal have been dismissed by the White House, as reported by CBS News.
President Trump requested that Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick collaborate on developing a proposal for a U.S. sovereign wealth fund by early May.
It has been filed, according to several sources who spoke with CBS News on Wednesday. Nonetheless, the White House expressed reservations regarding the method employed by the Treasury, as stated by one source.
Discussions regarding how the fund will operate are still ongoing, and there are currently no immediate plans for an announcement, according to a source.
Following President Trump’s executive order, the Treasury and Commerce Departments have developed proposals for establishing a Sovereign Wealth Fund; however, no definitive choices have been reached at this point,” stated White House spokesperson Kush Desai. “The administration continues to be dedicated to utilizing all possible resources to fulfill President Trump’s mandate aimed at protecting American national and economic safety.
A representative from the Treasury department chose not to comment.
Trump has teased a “very big announcement” before he leaves for the Middle East next week, but it’s unrelated to the proposed sovereign wealth fund, two sources said. “It’s going to be a truly earth-shattering and positive development for this country and for the people of this country,” he said in the Oval Office on Tuesday.
Mr. Trump hasn’t decided yet where the funds from the sovereign wealth fund should go, according to sources. Previously, he proposed that this fund might acquire part of TikTok’s ownership. This is the widely-used social networking site which currently risks being banned in the U.S., unless ByteDance—a firm based in China—sells off its share of the app.
Sovereign wealth funds generally invest assets derived from a nation’s natural resources with the objective of generating returns that could yield a financial benefit for the public. Many prominent funds receive funding through revenues generated from fossil fuels such as gas or petroleum; examples include Saudi Arabia’s Public Investment Fund and Norway’s sovereign wealth fund. Such funds have the potential to shield nations from fluctuations in the market values of these natural resources.
provide funds for government expenditures
and allow
future generations
to benefit from current oil and gas revenue.
In February, Mr. Trump issued an executive order that directed the Treasury and Commerce secretaries, in close coordination with the National Economic Council’s Kevin Hassett, to draft a plan for the sovereign wealth fund within 90 days.
The proposal must encompass suggestions for financing methods, investment approaches, fund architecture, and a management framework,” the directive specified. “Additionally, the proposal should incorporate an assessment of the legal aspects involved in setting up and operating such a fund, including any necessary legislative actions.
