By executive order, President Donald Trump on Monday urged the U.S. Treasury and Commerce Departments to establish a United States Sovereign Wealth Fund (SWF), proposing the acquisition of TikTok and directing the profits into the fund.
The White House said the creation of a fund for the United States will help maximize the stewardship of its national wealth, ensuring long-term economic competitiveness and fiscal sustainability.
SWFs typically hold a country’s proceeds from oil and gas. Over 60% of all SWFs are funded by natural resource revenues. There are over 90 SWFs around the world, and they currently manage over US$8 trillion.
In 2021, Guyana passed a bill establishing its SWF in the form of the Natural Resource Fund after its first oil discovery in 2015. The NRF serves as a repository for the country’s incoming revenues from oil exports to be allocated for major national development initiatives.
An oil-producing nation for nearly two centuries, this would mark the first time the U.S. is establishing a wealth fund of this nature. However, over 20 exist at the state level, financed by revenues from the country’s oil, gas, and mineral proceeds. The largest are based in Alaska, New Mexico and Texas.
