The U.S. White House plans to set up a sovereign wealth fund, with the Treasury and Commerce Departments submitting a draft plan.
On May 8, 2025, a White House spokesperson confirmed that the U.S. Department of the Treasury and the Department of Commerce, following President Trump's directive, are drafting preliminary plans to establish a sovereign wealth fund. The aim is to enhance the economy and security by liquidating government assets and utilizing tariff revenues. Although the plan is not finalized, the policy has sparked discussions in Washington D.C., becoming central to the Trump administration's economic strategy. The White House has expressed reservations about certain aspects of the draft, and the sources of funding and the fund's structure are still being deliberated.
Key Updates
05/08 06:00
The U.S. White House plans to set up a sovereign wealth fund, with the Treasury and Commerce Departments submitting a draft plan.
On May 8, 2025, a White House spokesperson confirmed that the U.S. Department of the Treasury and the Department of Commerce, following President Trump's directive, are drafting preliminary plans to establish a sovereign wealth fund. The aim is to enhance the economy and security by liquidating government assets and utilizing tariff revenues. Although the plan is not finalized, the policy has sparked discussions in Washington D.C., becoming central to the Trump administration's economic strategy. The White House has expressed reservations about certain aspects of the draft, and the sources of funding and the fund's structure are still being deliberated.
President Trump Orders the Establishment of a Sovereign Wealth Fund
In February this year, President Trump of the United States signed an executive order directing Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to draft a detailed plan for a sovereign wealth fund within 90 days. According to a statement released by White House spokesperson Kush Desai, the establishment of the fund is part of the Trump administration's policy to "utilize all available tools to safeguard U.S. national and economic security."
Sovereign wealth funds are typically owned and managed by the state, with funding sources often coming from natural resource revenues, fiscal surpluses, or foreign exchange reserves, and are used for long-term investments to create national wealth. The Trump administration proposed a concept different from the traditional model: using tariff revenues from U.S. imports as the fund's financial base.
Treasury and Commerce Departments Submit Draft, White House Holds Reservations
According to CBS News, the Treasury and Commerce Departments submitted a draft of the sovereign wealth fund in early May, but the White House expressed reservations about certain aspects of its content. Sources indicate that the White House has concerns about the fund structure and the use of funds proposed by the Treasury, leading to no final decision being made yet.
Nevertheless, the White House emphasized that the plan is an important component of the Trump administration's economic security strategy. Desai stated, "The government remains committed to using all available tools to fulfill President Trump's directive to ensure U.S. national and economic security."
Tariff Revenue as a Funding Source
President Trump has publicly stated multiple times that the funding source for the sovereign wealth fund will come from tariffs imposed on U.S. imports. This concept aligns with the Trump administration's recent move towards stronger trade protectionism. Since April, the U.S. has imposed a 10% tariff on goods from most countries and up to a 25% tariff on specific industries such as automobiles, steel, and aluminum, with a high tariff of 145% on Chinese goods.
However, according to Crypto Briefing, Commerce Secretary Lutnick later clarified that tariff revenue might not be directly used for the sovereign wealth fund, indicating that the funding source is still under discussion. Nonetheless, the Trump administration has not ruled out the possibility of using tariffs as initial capital for the fund.
Monetizing Government Assets and Benefiting Citizens
Treasury Secretary Bessent stated in February that the core goal of the fund is to "convert existing U.S. government assets into cash to benefit the American people." He noted that the government will combine liquid assets with other domestically held assets to release potential value and convert it into investable funds.
This strategy is similar to the operational logic of other countries' sovereign funds. For example, Norway and Saudi Arabia's sovereign funds are largely based on oil revenues, conducting long-term investments to stabilize national finances and reserve resources for future generations. The U.S. seeks to establish an investment platform with autonomous funding sources by monetizing government assets and tariff revenues.
Fund Structure and Governance Mechanism Under Consideration
According to President Trump's executive order, the draft plan for the sovereign wealth fund must include recommendations on funding mechanisms, investment strategies, fund structure, and governance models, and evaluate the legal requirements for establishing and managing the fund, including whether legislative authorization is needed.
The specific investment targets of the fund have not yet been announced, but according to Crypto Briefing, there have been internal discussions within the Trump administration about whether to include Bitcoin in the fund's investment portfolio. However, Bessent and Lutnick stated that the fund will primarily focus on warrants, stocks, and other non-crypto assets, with digital asset reserves to be managed under a separate project.
Internal White House Disagreements and Future Directions
Despite President Trump's strong interest in establishing the sovereign wealth fund, there remain internal disagreements within the White House regarding the feasibility and implementation of the plan. According to CBS News, the White House has returned some of the draft content, requesting further revisions from the Treasury and Commerce Departments.
Additionally, Trump has not clearly stated the intended use of the fund's profits. Sources reveal that he has hinted that the fund might hold shares in strategic assets like TikTok, but there is currently no specific plan.
