A Plan for Establishing a United States Sovereign Wealth Fund
This is an executive order announcing a plan to establish a United States sovereign wealth fund (SWF). The order sets policy to maximize the stewardship of national wealth for the benefit of American citizens and directs federal agencies to develop a plan for creating the SWF. The plan, to be prepared by the Treasury and Commerce Departments with input from the White House economic policy team, must address funding mechanisms, investment strategies, fund structure, governance, and legal considerations, including whether new legislation is needed. The order emphasizes that it does not alter existing agency authorities or OMB budget functions, and it clarifies that the order is non-binding in terms of rights and enforceability. A detailed plan is due to the President within 90 days of the order. In short, the executive order launches a process to design a U.S. sovereign wealth fund, outlining what the plan should cover and how it will fit within current law and budgeting, with potential subsequent legislation to implement the fund.
Key Points
- 1Policy goal and purpose: Establish a sovereign wealth fund to promote fiscal sustainability, reduce the tax burden on American families and small businesses, provide economic security for future generations, and strengthen U.S. economic and international leadership.
- 2Plan development and timeline: The Secretary of the Treasury and the Secretary of Commerce, in close coordination with the Assistant to the President for Economic Policy, must develop a plan and submit it to the President within 90 days. The plan must cover funding, investment approach, fund structure, governance, and legal considerations.
- 3Governance, structure, and funding: The plan should include a governance model and recommended funding mechanisms and investment strategies, plus an assessment of legal considerations for establishing and managing the SWF (including any legislative needs).
- 4General implementation safeguards: The order does not impair existing authority of executive departments or the Director of the Office of Management and Budget, and implementation must align with applicable law and available appropriations.
- 5Legal status and enforceability: The order states it is not intended to create any rights or benefits enforceable by law or equity; it is a planning and policy instrument, not a rights-granting document.