The Trump administration has invested over $10 billion in taxpayer funds to acquire minority ownership stakes in at least nine private companies across steel, minerals, nuclear energy, and semiconductors within the past six months, with the bulk of deals occurring in October and November. The Commerce Department became the largest shareholder in Intel after an $8.9 billion investment, while the Defense Department took stakes in mining companies including MP Materials and Trilogy Metals. Trump personally purchased between $1 million and $5 million in Intel corporate debt shortly after the government secured its stake, according to financial disclosures released in November.
The administration justified the equity strategy as addressing national security vulnerabilities and reducing reliance on China for critical resources, with officials claiming targeted stakes ensure taxpayers receive fair value. However, multiple analysts and former officials directly contradicted this rationale. Aaron Bartnick, a former Biden White House official, stated that without a clearly articulated strategy, the intervention “could just devolve to arbitrary deals that favor friends or disfavor foes.” William A. Reinsch of the Center for Strategic and International Studies said Trump appeared to invest “by whim” rather than following a coherent plan, noting officials arranged several stakes in weeks while Biden officials took months for due diligence.
Darrell M. West of the Brookings Institution found that many investments involved high-risk areas with “almost no serious review,” putting taxpayer money at risk with no guarantee of profitability. Many target companies face financial headwinds and could require years to become profitable. Additionally, industry executives reported reluctance to meet with Trump officials out of fear the government would pressure them into surrendering company ownership, while Intel agreed to the equity deal only after Trump called for its chief executive’s firing over alleged China ties.
The approach contradicts traditional Republican free-market ideology but aligns with emerging bipartisan support for industrial policy driven by China’s dominance in strategic industries. The Commerce Department, led by former New York financier Howard Lutnick, has adopted investment-bank practices to facilitate the equity portfolio. The Defense Department’s Office of Strategic Capital and the Energy Department leveraged existing loan programs to expand stake acquisition across critical mineral and semiconductor sectors.
Concerns about the strategy include opacity in deal selection, potential favoritism and corruption, market distortion, and loss of taxpayer funds. The administration has discussed establishing price floors for minerals and taking cuts of export revenues alongside equity ownership. One deal involving Vulcan Elements, a rare earth magnet startup, raised questions given that the company received investment from 1789 Capital, where Trump’s son Donald Trump Jr. is a partner.
(Source: https://www.nytimes.com/2025/11/25/us/politics/trump-intel-steel-minerals-china.html?unlocked_article_code=1.308.BF-g.V_G-1OC57dmV&smid=nytcore-ios-share)