Trump Orders Plan for US Sovereign Wealth Fund
President Trump has instructed the Treasury and Commerce Departments to develop a plan for a national sovereign wealth fund.
Background
Trump first hinted at his plans for a fund during a campaign speech in September. Similar proposals were previously discussed under Biden's administration.
Potential Model
The Alaska Permanent Fund is a potential model for a US fund. It distributes annual dividends to residents from revenue generated primarily through investments.
Purpose and Challenges
The purpose and structure of a US sovereign wealth fund remain uncertain. Lawmakers may seek to differentiate it from a universal basic income. Establishing a national fund may also face legislative hurdles.
Funding Sources
Sovereign wealth funds are typically funded by revenue from state-owned natural resources. However, the majority of these resources are owned by US states, which may present consolidation challenges.