Washington, D.C. — In an unprecedented move, the Trump administration has begun allocating billions of dollars of taxpayer funds to acquire equity positions in a range of private companies, including industry heavyweight Intel Corp.. The initiative, billed as a “strategic partnership” program, aims to bolster domestic manufacturing and safeguard national security by ensuring government influence over critical supply chains.
The Treasury Department, in coordination with the Department of Commerce, identifies firms that meet a set of criteria related to technology, defense relevance, and job creation potential. Once selected, the government injects capital in exchange for a minority ownership stake, typically ranging from 2% to 5% of the company’s outstanding shares. These investments are financed through a combination of surplus budget allocations and specially earmarked appropriations.
Since the program’s launch earlier this year, more than $3 billion has been committed to a handful of high‑profile targets:
While supporters argue the program strengthens America’s technological independence, critics warn that using public money to purchase private equity raises ethical and fiscal questions. Senator Jane Doe (D‑CA) has called the practice “a dangerous precedent” that could blur the line between government and market competition. Advocacy groups also fear that the lack of transparency in deal terms may expose taxpayers to undue risk.
According to a senior Treasury official, the administration plans to continue the equity‑acquisition model throughout the current fiscal year, with an additional $2 billion earmarked for new sectors such as renewable energy and artificial intelligence. The official emphasized that each investment will undergo “rigorous due‑diligence” to protect taxpayer interests while advancing strategic objectives.
As the program gains momentum, observers will be watching closely to see whether the benefits of government‑backed ownership outweigh the potential drawbacks of increased market intervention.