Trump govt stake in US firms balloons to $10 billion amid national security & strategic concerns — Here’s a look
Investments by the US government under Donald Trump in private American companies have reached $10 billion, with most of the deals set to happen in October and November 2025, according to a report by the New York Times.
The report said national security was largely the reason behind the transfer of taxpayer money given by the Trump administration to private entities, and that the strategy “shows little sign of slowing down.”
To date, the US government has purchased shares of at least nine companies in key sectors such as minerals, nuclear energy, semiconductors and steel. Experts believe that the decisions were taken with the aim of reducing dependence on resources from China and foreign countries.
Concerns expressed about transparency and return on taxpayer dollars
The report highlighted concerns raised about the selection process when choosing which private companies will receive government funding, transparency in deals and questions about the return on taxpayers’ money used for the deals.
Speaking to the NYT, Aaron Bartnick, a Columbia University fellow and former Joe Biden official, said there were serious questions about the “lack of a clearly articulated strategy” and concerns that “this could turn into arbitrary agreements that only favor friends or disadvantage enemies.”
Darrell M West, a senior fellow at the Brookings Institution, a Washington think tank, thinks most of the deals “have barely gone through serious scrutiny”, adding: “They don’t appear to have been well thought out. Some of the investments are in high-risk areas. There’s no guarantee the government will make money, so they’re really putting taxpayers’ money at risk.”
Defending the administration, White House spokesman Kush Desai said the moves were targeted and profitable. “If business-as-usual policies worked, America would no longer be dependent on foreign countries for critical minerals, semiconductors and other products that are key to our national and economic security. The administration’s targeted equity stakes get taxpayers a good bargain and move the ball forward in a meaningful way to encourage greater private sector investment,” he told the NYT.
How did the US government buy shares in private companies?
While the Trump administration’s moves are not unique—over the past five years, the U.S. government has invested in international funds and companies through the U.S. International Development Finance Corporation—they are indeed aggressive.
Additionally, the Trump administration has used other means to increase participation in the private sector; for example, the Ministry of Defense invested in many mining companies. The ministry’s Strategic Capital Office, established in 2022, received additional funding to invest in critical minerals, shipbuilding and other key sectors.
Additionally, the Energy Department also used loan programs created by Biden to buy shares in mining companies; and the Department of Commerce similarly leveraged Biden-era semiconductor funds and investments from foreign countries to build its portfolio.
