Bessent and Lutnick sent plan for U.S. sovereign wealth fund — but White House has pushed back

President Trump’s top advisers have put together a plan to establish a government-run investment fund, a request that the president had made earlier this year. The plan was developed by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, in response to Mr. Trump’s directive to create a U.S. sovereign wealth fund by early May.

According to sources, the proposal has been submitted to the White House, but certain parts of it have been rejected due to concerns about the approach taken by the Treasury Department. Details regarding the mechanics of the fund are still being debated, and no official announcement is expected in the near future.

White House spokesperson Kush Desai stated, “In accordance with President Trump’s executive order, the Treasury and Commerce Departments have formulated plans for a Sovereign Wealth Fund, but no final decisions have yet been made.” The administration remains committed to utilizing all available tools to fulfill President Trump’s directive to protect America’s national and economic security.

While Treasury declined to comment on the matter, President Trump has hinted at a “very big announcement” before his upcoming trip to the Middle East. However, this announcement is unrelated to the proposed sovereign wealth fund. The president has not yet decided how the proceeds from the fund would be utilized, although he has previously suggested that the fund could potentially have a stake in TikTok.

Sovereign wealth funds typically invest assets from a country’s natural resources to generate returns that can benefit the public. These funds, such as Saudi Arabia’s Public Investment Fund and Norway’s sovereign wealth fund, help countries mitigate fluctuations in natural resource values, fund government expenditures, and provide for future generations.

In February, President Trump issued an executive order directing the Treasury and Commerce secretaries, along with Kevin Hassett from the National Economic Council, to develop a plan for the sovereign wealth fund within 90 days. The plan includes recommendations for funding mechanisms, investment strategies, fund structure, and a governance model, as well as an evaluation of the legal considerations for establishing and managing such a fund.

As developments unfold, it will be interesting to see how the proposed sovereign wealth fund could potentially impact the economic landscape and national security of the United States. Stay tuned for further updates on this evolving story.