American Sovereign Wealth Fund Exploration Act
The American Sovereign Wealth Fund Exploration Act would not create a fund itself, but would establish a temporary federal commission to study the feasibility, design, and potential uses of a national sovereign wealth fund owned and managed by the United States. The Commission would examine revenue sources, asset types, governance, and potential impacts on the economy, and would be required to produce a comprehensive report with legislative recommendations within two years of its first meeting. The Commission would be made up of members from major financial and regulatory agencies (the Federal Reserve, Treasury, SEC, Commerce, and U.S. Trade Representative) along with a sizable slate of academics or experts in economics, monetary policy, and related fields. It would have authority to hold hearings, hire staff and experts, and coordinate with other federal agencies as it studies how such a fund could be operated under international guidelines for sovereign wealth funds.
Key Points
- 1Purpose and scope: The bill creates a Commission on Exploring the Creation of a Sovereign Wealth Fund of the United States to study feasibility, structure, revenue sources, asset holdings, uses of funds, governance, and potential impacts, with findings and recommendations to Congress.
- 2Commission makeup: 6 representatives from the Federal Reserve, 3 from the Treasury, 3 from the SEC, 2 from the Commerce Department, 1 from the Office of the U.S. Trade Representative, and 10 academics/experts, appointed by the appropriate heads or chairs.
- 3Timeline and duties: The Commission must be established within 90 days of enactment, meet at least quarterly (and within 60 days after all members are appointed), and complete a final report within 2 years of its first meeting.
- 4Investigation scope: The study covers revenue sources (e.g., natural resources, taxes, tariffs, deficits, private/foreign contributions), asset types and allowable holdings (stocks, bonds, real estate, private equity, currencies, etc.), uses of wealth (general revenue, investment, infrastructure, social programs, debt reduction, stabilization, national security), and governance/operational frameworks aligned with international principles (GAPP/Santiago).
- 5Reporting and outcomes: The Commission must deliver a public report with findings and detailed legislative recommendations; minority views may be included. The act does not implement a fund but lays out the process to consider one and what a future Congress might do.