Having a businessman as president has its advantages, especially in dealing with how tax dollars are spent. Donald Trump’s creation of a U.S. Sovereign Wealth Fund and taking a 10% stake in the computer chip maker Intel, rather than just doling out corporate welfare as was the practice of previous administrations, underscores how his financial acumen can benefit the public.
Passing the $280 billion CHIPS and Science Act in 2022, Congress wanted to make sure the nation was on the cutting edge of computer technology and not have to depend on foreign countries for the chips and semiconductors that make modern life possible. Instead of a handout, Trump invested $8.9 billion with California-based Intel and secured a piece of the action for the taxpayers. It was out-of-the-box thinking that corresponds with Trump’s Make America Great Again Agenda.
Government investment accounts are not new. Kuwait created the first modern fund in 1953 to invest surplus oil revenues. Since then, the concept has spread worldwide, and today, there are nearly 100 SWFs managing over $9 trillion in assets. Their purpose is to convert national wealth—whether from oil, natural resources, or trade surpluses—into long-term investments that benefit future generations.
The largest SWF belongs to Norway, which manages about $1.7 trillion. China runs two major funds totaling about $2.4 trillion, while Abu Dhabi’s fund holds roughly $1.1 trillion. Collectively, these giants dominate global sovereign investing. Their portfolios typically include stocks, bonds, real estate, infrastructure, and private equity. By spreading investments across industries and continents, SWFs not only secure higher returns than traditional reserves but also exert enormous influence on global markets.
In New York City, for example, the Chinese own some of the buildings that make up the iconic skyline. They bought the General Motors Building, Waldorf Astoria Hotel, One Chase Manhattan Plaza, Park Avenue Plaza, and the 29-storey 7 Bryant Park building. The Waldorf Astoria in Washington, D.C., the Standard Oil Building in San Francisco, and many other lesser-known properties are also under Chinese control.
For the United States, Trump’s move is historic. Unlike oil-rich nations or export-driven economies like China, America has traditionally run trade deficits and relied on debt to finance spending, leaving little room for a taxpayer benefit fund. That is why past industrial policy has leaned on subsidies and grants rather than ownership stakes. Trump’s approach breaks that mold by insisting taxpayers share in the upside of government-backed investments.
The Intel deal could set a precedent. If future U.S. industrial programs—from renewable energy to artificial intelligence—were tied to equity stakes rather than outright subsidies, Washington would not just be spending but also investing. That strategy could reduce waste, build public wealth, and give taxpayers a direct claim in the technologies shaping the 21st century.
For now, the U.S. Sovereign Wealth Fund remains in its infancy. But the Intel deal signals that America may finally be taking a page from the playbook of other countries and start leveraging deals for our own advantage.
If the strategy succeeds, Trump’s decision to invest rather than give away could reshape how Washington manages public money—and mark a turning point in the nation’s economic future.