It’s a new day for American economic policy – and the opportunity before us is historic. With the global economy evolving rapidly and national debt continuing to mount, the U.S. is finally exploring an idea that successful nations like Norway, Singapore, and the United Arab Emirates have embraced for years: the sovereign wealth fund. These countries have used their sovereign funds to turn natural resource wealth and fiscal surpluses into powerful engines for long-term prosperity. Norway’s Government Pension Fund Global, for example, has ballooned to over $1.4 trillion, distributing the benefits of its oil wealth to every citizen and safeguarding its economy for generations.
Now, under the leadership of President Trump, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick, America is poised to step into this space with a uniquely ambitious vision. And let me tell you – this isn’t just smart economics, it’s America First economics.
For decades, we’ve talked about unleashing the full potential of American assets. Well, here’s the moment. Instead of watching our government bloat the balance sheet with more and more debt, why not flip the script and invest in America? That’s what this fund does – it takes underutilized government assets, like our stakes in Fannie Mae and Freddie Mac, and turns them into wealth-building opportunities for all Americans.
Howard Lutnick’s proposal to obtain equity or warrants when the government makes major purchases is simply genius. Think about it – when Uncle Sam spends big, the American people should get a return on that investment. This is how we bring market discipline into government spending. It’s shareholder capitalism — with the taxpayers as the shareholders.
This is a pro-growth strategy. It’s a jobs strategy. It’s a prosperity-for-everyone strategy. And most importantly, it’s a vision that says government should be a partner in wealth creation, not just a redistributor.
Let’s take a page from Norway’s playbook – but do it the American way. Bigger, better, and driven by innovation, entrepreneurship, and the dynamism of our free-market system. From tech to energy to biotech, the opportunities are endless when you have a country like ours at the helm of a professionally managed, transparent, and accountable investment vehicle.
This could be the beginning of a new era – one where American families feel the upside of American power. Lower taxes, smarter infrastructure, stronger retirement security, and a booming economy. That’s the Kudlow way. That’s the American way.
Policy Recommendation:
To ensure the U.S. sovereign wealth fund launches with strength and credibility, the administration should begin by capitalizing it with a portfolio of existing federal equity stakes – including positions in Fannie Mae, Freddie Mac, and any publicly traded assets currently held by government entities. Additionally, Congress should authorize a new “American Prosperity Fund Act,” empowering the Treasury and Commerce Departments to negotiate equity or warrant agreements in exchange for future large-scale federal expenditures—such as infrastructure contracts, clean energy development, and pharmaceutical procurements. The fund should be managed independently with a professional board, subject to strict transparency requirements, and structured so that a portion of returns are reinvested while another portion is distributed annually as dividends to American citizens—similar to Alaska’s Permanent Fund model. This ensures broad-based benefit and builds long-term public trust.
This should not be a partisan issue. It’s time for Democrats to show they truly care about working-class Americans—not just with words, but with actions that deliver real, generational wealth. A sovereign wealth fund is a chance for both parties to unite around economic opportunity and shared prosperity. If we’re serious about lifting up all Americans, then we must come together now to make this vision a reality.
The United States has long been a beacon of free enterprise, innovation, and boundless opportunity. A sovereign wealth fund gives us the chance to double down on those strengths – to turn our government into a strategic investor, and our citizens into stakeholders in the national success story. The time to act is now. Let’s seize this moment and build the next great chapter of American prosperity – not just for Wall Street, but for every Main Street in this great country.