America Needs a Sovereign Wealth Fund
n January 2025, shortly after being inaugurated, U.S. President Donald Trump signed an order calling for the creation of a U.S.-owned sovereign wealth fund. An SWF, Trump said, would “promote the long-term financial health and international leadership of the United States” through direct investment in “great national endeavors,” such as manufacturing and medical research. Although unmentioned by the administration, an SWF could also help maintain the United States’ technological superiority over China.
Trump’s SWF order has been overlooked amid the flurry of other executive actions, but it nonetheless presents an unprecedented opportunity for American technological innovation. Advanced technology remains the foundation of U.S. economic and national strength. Although innovation driven by private investment has allowed the country to lead in areas such as chip design and drug discovery, next-generation technology sometimes demands greater risk and patience than private capital is willing to bear. As a result, U.S. innovation often proceeds too slowly for a country seeking to lead the next technological revolution.