$10 Billion and Counting: Trump Administration Snaps Up Stakes in Private Firms [View all]
Source: NYT
The Trump administration is snapping up ownership shares of private companies it deems essential to national security. It is an unusual new strategy that has already committed more than $10 billion in taxpayer funds and shows little sign of slowing.
The government’s growing portfolio of corporate ownership involves minority stakes, or the option to take them in the future, in at least nine companies involved in steel, minerals, nuclear energy and semiconductors, a New York Times analysis found. The deals were all struck in the past six months, with the bulk made in October and November.
The effort appears mostly driven by national security concerns, particularly a desire for the government to prop up strategic industries and lessen America’s reliance on foreign countries like China for key resources. Some officials are hopeful the equity stakes will generate a windfall for taxpayers, but the likelihood of that is unclear. Many of the companies are facing financial headwinds, and some could take years to become profitable.
The unusual government intervention into the private market is fueling some concerns, including the opacity of the process, the potential for favoritism, corruption and market distortions, along with the possible loss of taxpayer funds should the investments fail.
Read more: https://www.nytimes.com/2025/11/25/us/politics/trump-intel-steel-minerals-china.html?unlocked_article_code=1.308.XIMx.3WcQ8CbWM3Tm
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