Former U.S. President Donald Trump signed an executive order on Monday to establish a sovereign wealth fund within a year, suggesting it could potentially acquire TikTok. The order directs the Treasury and Commerce Departments to draft a plan within 90 days, detailing funding, investment strategies, and governance.
Unlike many countries with sovereign wealth funds backed by budget surpluses, the U.S. operates at a deficit, making the fund’s financing uncertain and likely requiring Congressional approval. Trump emphasized the fund would generate wealth and support national projects like infrastructure, manufacturing, and medical research. Treasury Secretary Scott Bessent stated that the fund would leverage U.S. assets for public benefit.
One proposed model involves repurposing the U.S. International Development Finance Corp (DFC), a government agency financing global projects. Trump recently nominated Benjamin Black to lead the DFC, fueling speculation about its future role.
Surprisingly, Trump hinted the fund could buy TikTok, as its Chinese owner ByteDance faces a U.S. divestment mandate. He said discussions on TikTok’s fate were ongoing, with a decision expected in February.
Experts remain skeptical, noting the lack of surplus funding and questioning whether a sovereign fund can be established via executive order.
