A Plan for Establishing a United States Sovereign Wealth Fund
Signed: February 3, 2025
Published: February 10, 2025
Document Number: 2025-02477
šSummary
This executive order directs the Treasury Department and the Commerce Department to develop a plan to create a U.S. sovereign wealth fund intended to manage national wealth for the benefit of American citizens. It primarily affects these two departments and the White House economic policy staff, and it could later affect Congress and federal agencies if new laws or funding are needed. Within 90 days, Treasury and Commerce must submit a joint plan to the President covering how the fund would be financed, how it would invest, how it would be structured and governed, and what legal steps (including possible legislation) would be required. The order does not itself create the fund or provide funding, and it says implementation must follow existing law and available appropriations.
š¼Business Impact
This order mainly affects capital-intensive and strategically sensitive industriesāfinancial services/asset managers, defense and dual-use tech, energy and critical minerals, infrastructure, and large-cap public companiesābecause a U.S. sovereign wealth fund could become a major investor and may steer capital toward national-priority sectors. While it creates no immediate compliance obligations, businesses should anticipate new government-facing requirements if they seek funding (e.g., disclosure, governance/ESG or national-security screens, domestic investment/job commitments, and potential restrictions on foreign ownership or supply-chain exposure tied to āstrategic leadershipā goals). The opportunity is access to a large, patient source of capital and potential co-investment alongside federal priorities, especially for projects that improve resilience (semiconductors, grid, ports, rare earths, cybersecurity). Immediate actions: monitor Treasury/Commerceās 90āday plan and engage through trade associations/comment channels; prepare an āinvestableā package (audited financials, project pipeline, compliance posture, CFIUS/export-control readiness); and stress-test how potential funding mechanisms (e.g., new fees, asset sales, or redirected revenues) could affect your taxes, procurement environment, or sector-specific regulation.
Full Text
Executive Order 14196 of February 3, 2025
A Plan for Establishing a United States Sovereign Wealth Fund
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the long-term financial health and international leadership of the United States, it is hereby ordered:
Section 1 . Policy and Purpose. It is the policy of the United States to maximize the stewardship of our national wealth for the sole benefit of American citizens. To this end, it is in the interest of the American people that the Federal Government establish a sovereign wealth fund to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally.
Sec. 2 . Sovereign Wealth Fund. The Secretary of the Treasury and the Secretary of Commerce, in close coordination with the Assistant to the President for Economic Policy, shall develop a plan for the establishment of a sovereign wealth fund consistent with section 1 of this order. The Secretary of the Treasury and the Secretary of Commerce shall jointly submit this plan to the President within 90 days of the date of this order. Such plan shall include recommendations for funding mechanisms, investment strategies, fund structure, and a governance model. The plan shall also include an evaluation of the legal considerations for establishing and managing such a fund, including any need for legislation.
Sec. 3 . General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 9182)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
February 3, 2025.