The focus on tariffs has overshadowed President Trump’s proposal to establish a U.S. sovereign wealth fund designed to promote fiscal sustainability, reduce tax burdens, secure economic stability for future generations, and enhance the country’s global standing.

This idea is not new, as there are more than 90 sovereign wealth funds globally, managing assets exceeding $12 trillion. However, the U.S., despite being a dominant economic power, is notably absent from this list.

Given the U.S.’ significant wealth, creating a sovereign wealth fund now seems prudent amidst favorable economic and geopolitical conditions. President Trump, bringing his business acumen to the table, along with advice from Jared Kushner and private equity players, has translated this theory into action.

While Kushner has personal experience with sovereign wealth investments, exemplified by the $2 billion deal with Saudi Arabia’s Public Investment Fund, the success of other large funds is not as widely discussed.

For instance, Norway’s Government Pension Fund Global is the world’s largest sovereign wealth fund with $1.7 trillion assets under management. These state-owned funds, fueled by trade surpluses or natural resources, now wield considerable influence across various industries globally.

Although the U.S. typically relies on private investments, pension funds, and venture capital, establishing a sovereign wealth fund could capitalize on existing governmental assets for revenue-generating investments, potentially shifting the nation from a debtor to a creditor status.

Ensuring transparency and governance, with congressional oversight, is crucial. While the concept of a U.S. sovereign wealth fund has been debated previously, the current landscape may necessitate its creation to counterbalance foreign funds and boost economic diplomacy.

With bipartisan support and a clear investment strategy, America’s sovereign wealth fund could be a transformative financial tool, aligning with national interests and long-term prosperity. As the Trump economy dominates headlines, this initiative could pave the way for new avenues of economic growth and influence.