President Donald Trump has signed an executive order directing the creation of a US sovereign wealth fund within a year. The order tasks the Treasury and Commerce Departments with presenting a detailed plan within 90 days, outlining funding sources, investment strategies, and governance. The US, which operates at a deficit, would need congressional approval to establish such a fund.

Trump has long supported the idea of a government investment vehicle, suggesting it could finance major infrastructure projects and other national initiatives. Treasury Secretary Scott Bessent indicated that the fund would be structured to monetise US assets for public benefit. One proposal involves repurposing the US International Development Finance Corp (DFC) to function similarly to sovereign wealth funds found in other nations.

Congressional approval is likely necessary, as such a fund typically relies on surplus revenue. Experts have questioned its viability, given the country's financial position. Investors expressed surprise, noting that sovereign wealth funds usually stem from accumulated savings rather than deficits. Despite this, Trump remains confident in the initiative.

A surprising element of Trump's announcement was the suggestion that the sovereign wealth fund could purchase TikTok. The app, which faces regulatory pressure over national security concerns, has been in limbo as its Chinese owner, ByteDance, explores potential sales. Trump stated that a decision on TikTok's future could be reached in February.