Trump administration’s $20.9 billion stake in private companies

In a break from Republican administrations’ typical support for reducing the government’s role in the economy, President Trump has pushed for more, Bloomberg reports.

“Prior administrations have tried to speed the development of sectors like semiconductors and clean energy with grants, loans, tariffs and other policies. But taking equity stakes in companies is incredibly rare,” says The New York Times.

Since Trump returned to office in January 2025, the U.S. government has invested $20.9 billion across sixteen deals involving direct ownership, according to a tracker by the Council on Foreign Relations.

The Defense Department has led the way with seven deals, says the CFR.

At the Pentagon, officials “aiming to transform the military with a private investor’s tool kit and a mindset shaped by Silicon Valley’s critiques,” are Under Secretary for Research and Engineering Emil Michael, a former number 2 at Uber; Deputy Secretary Stephen Feinberg, who used to run one of the country’s biggest private equity firms, Cerberus Capital Management; and Secretary of the Army Dan Driscoll, who’s worked in private equity and venture capital, says The Washington Post.

The new approach is causing concern among some former Defense Department officials, lawmakers and experts, who worry that Trump appointees may be ushering in their chosen firms and taking on risks with taxpayer dollars — while placing fewer guardrails on new technology, the Post says.

“The big problem is the lack of transparency in how they choose to work with private firms,” says Darrell West, a senior fellow in the Brookings Center for Technology Innovation. “It’s not clear where they choose to invest or for what reason.”

One of the companies on the CFR tracking list is Vulcan Elements, a start-up manufacturer of rare earth magnets. Vulcan has received funding from 1789 Capital; Donald Trump Jr. is a partner of that firm.

Here is more from the Cato Institute.

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