September 24, 2025

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Dear Friends and Family,

As the leaves turn and the fiscal year winds down, it’s hard not to wonder: Whatever happened to that big idea President Trump floated back in February about creating a U.S. Sovereign Wealth Fund (SWF)? In a move that grabbed headlines worldwide, Trump signed an executive order on February 3, 2025, directing the Treasury and Commerce Departments to draft a blueprint for the nation’s first federal SWF within 90 days. The plan? Harness America’s vast assets to fuel long-term growth, ease tax burdens, and even snag high-profile buys like TikTok. Seven months later, with the deadline long past and whispers of congressional hurdles, the question lingers—will we hear more about this fund, or will it fade into the annals of ambitious policy proposals?

Drawing from the original Reuters coverage that broke the story, the full text of the executive order, and deeper analysis from legal firm Holland & Knight, this piece recaps the origins, unpacks what an SWF really is, and dives into U.S. history with these funds—both past flirtations and present-day realities at the state level. Spoiler: While a national SWF remains a tantalizing “what if,” America’s states have been quietly building wealth engines for decades.

The Spark: Trump’s Executive Order and the TikTok Twist

It all kicked off in Washington on a crisp February morning. As detailed in the Reuters article Trump orders creation of US sovereign wealth fund, says it could buy TikTok, President Trump inked the order amid fanfare, positioning the SWF as a tool to “create a lot of wealth for the fund” and join the ranks of global heavyweights like those in the Middle East and Asia. The document itself, available in full at the White House site A Plan for Establishing a United States Sovereign Wealth Fund, is concise but visionary. It invokes presidential authority to promote “fiscal sustainability” and “economic security for future generations,” tasking Treasury Secretary Scott Bessent and Commerce officials with delivering recommendations on funding (think tariffs, per Trump’s past remarks), investments, structure, and governance by early May.

The order’s sparse details left room for speculation—and Trump didn’t disappoint. He mused about using the fund to scoop up TikTok, the ByteDance-owned app facing a U.S. ban over national security fears. With 170 million American users in the balance, Trump delayed enforcement by 75 days via another order and hinted at a “right deal” involving the SWF. As Holland & Knight’s alert Trump Plans to Create a U.S. Sovereign Wealth Fund and Suggests Potential TikTok Acquisition notes, this could sidestep full nationalization while giving Uncle Sam a stake amid U.S.-China trade tensions. But experts like Clemence Landers from the Center for Global Development poured cold water: No surplus means no easy funding, and Congress holds the purse strings. “You can’t fund an institution by executive order,” she quipped.

Fast-forward to today: The 90-day plan was submitted quietly, but progress has stalled amid budget battles and deficit debates (projected at $1.9 trillion for FY2025). Investors remain skeptical—Robeco’s Colin Graham called it a “confused solution to an undefined problem.” Yet, with global SWFs managing over $8 trillion across 90+ funds (per the International Forum of Sovereign Wealth Funds), the allure persists. Will tariffs from Trump’s trade wars fill the coffers? Could repurposing the U.S. International Development Finance Corp. (DFC) bridge the gap? As we hit September, the silence is deafening—leaving us wondering if this fund will ever see daylight.

What Exactly Is a Sovereign Wealth Fund?

At its core, a Sovereign Wealth Fund is a state-owned investment vehicle that pools national surplus—often from commodities like oil, trade windfalls, or privatizations—to invest in assets worldwide. These aren’t your grandma’s savings account; they’re powerhouse portfolios in stocks, bonds, real estate, private equity, and more, aimed at stabilizing economies, diversifying revenue, saving for the future, or making strategic plays.

As Holland & Knight explains, SWFs pursue four main goals:

• Economic Stabilization: Buffering against booms and busts, like commodity price swings.
• Savings for Future Generations: Hoarding wealth to fund pensions or weather dry spells.
• Economic Diversification: Spreading bets beyond one industry (hello, oil-dependent nations).
• Strategic Investments: Backing infrastructure, tech, or geopolitically juicy assets.

Globally, Norway’s $1.7 trillion Government Pension Fund Global—fueled by North Sea oil—exemplifies the “future-proofing” model, investing ethically in everything from green energy to U.S. tech stocks. The UAE’s Abu Dhabi Investment Authority ($1+ trillion) diversifies petrodollars into global real estate and equities, while China’s CIC manages forex reserves for development. These funds aren’t flashy; they’re long-game players, often governed by principles like the Santiago Principles for transparency and independence.

For the U.S., the twist is funding: No oil gushers or surpluses here—just $5.7 trillion in federal assets (per government ledgers), including gold reserves worth $750 billion at market prices. Tariffs, asset monetization, or even student loan tweaks could seed it, but as the Reuters piece highlights, deficits demand congressional buy-in.

U.S. History with SWFs: No Federal Stars, But State-Level Success Stories

Here’s the irony: America has flirted with SWFs for decades, but never gone national—until Trump’s EO. The U.S. has no federal equivalent, as Britannica Money points out, due to our deficit-driven budget and aversion to direct government investing in private markets. Past proposals echo today’s buzz: In the 2000s, amid foreign SWF investments in U.S. banks (over $24 billion post-financial crisis), Congress passed the Foreign Investment and National Security Act of 2007 to scrutinize them for security risks. Fast-forward, Biden’s team mulled an SWF for “global competitiveness” (per NYT and FT reports in the Reuters article), and a 2024 House bill (H.R. something-or-other) tested the waters, per Greenberg Traurig insights.

But zoom in on the states—that’s where U.S. SWF history shines, with 21 to 23 funds managing $332 billion collectively (House estimates). These “sovereign” setups (broadly defined) tap natural resources for public good, predating modern global trends. Here’s a quick rundown of key examples, past and present:

Fund NameStateEstablishedAssets (Approx., Latest)Funding SourcePurpose & Highlights

• Alaska Permanent Fund Alaska1976$79.6 billion (Dec 2024)Oil royaltiesSaves oil wealth for residents; pays annual dividends (e.g., $1,312 per eligible Alaskan in 2023). A global model for citizen payouts.
• Texas Permanent School Fund Texas1854 (modern form 1980s)$50+ billionLand sales, oil/gas royalties from state landsFunds public education; invests in stocks/bonds. One of the oldest, rooted in Republic of Texas land grants.New 
• Mexico State Investment Council (Land Grant Permanent Fund) New Mexico1971$30+ billionOil/gas from state trustsSupports education, public buildings; diversified into renewables. Boosted by 1970s energy boom.
• Texas Permanent University Fund Texas1876$25+ billionOil/minerals from riverbed landsEndows University of Texas/Texas A&M systems; focuses on long-term endowments.
• Wyoming State Land Investment Board Wyoming1974$10+ billionCoal/oil royaltiesFunds schools and state ops; conservative investments emphasize stability.
• North Dakota Legacy Fund North Dakota2010$10 billionOil tax surplusPost-boom saver; invests globally to avoid “Dutch disease” from resource reliance.

These state pioneers trace back to the 19th century—Texas’s funds stem from post-independence land deals—but exploded post-1970s oil crises. Alaska’s, born from Gov. Jay Hammond’s vision, turned volatile royalties into a $50+ billion stabilizer by the 1990s. Today, they fund everything from tax relief to infrastructure, proving SWFs work when tied to resources. No federal counterpart? That’s by design—our system’s checks favor private markets, but Trump’s push revives the debate.

The Big Wonder: Will We Hear More?

As September 2025 unfolds, the SWF saga feels like a cliffhanger. Holland & Knight warns of risks—cronyism, geopolitical blowback (TikTok as a China bargaining chip?), and the need for ironclad governance to avoid scandals like Malaysia’s 1MDB mess. Optimists see a $750 billion gold-backed behemoth rivaling Norway’s, closing the gap on China’s Belt and Road sprawl. Pessimists? They eye the deficit and Congress’s gridlock.

So, will we hear about the Sovereign Wealth Fund? With midterms looming and Trump’s team eyeing 2026 rollout, expect rumblings—perhaps in budget talks or TikTok updates. For now, it’s a reminder: America’s wealth-building toolkit is evolving, one state (and maybe one nation) at a time. Stay tuned; the plot thickens.

Love and Light in Christ,

Helene

P.S. Invoke your power—call Congress demanding the ERA using Power of One: https://www.katrinasdream.org/dreamscape/powerof10/

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