In a move set to reshape America’s economic and regulatory landscape, former President Donald Trump has announced two ambitious policy directives — the creation of a U.S. sovereign wealth fund and the introduction of a far-reaching deregulation initiative. Both measures, according to Trump and his advisors, are designed to boost national competitiveness, safeguard key industries, and streamline government operations in ways they believe will ignite economic growth.
The first directive tasks the U.S. Treasury Department and the Department of Commerce with designing and implementing a sovereign wealth fund — a financial instrument traditionally used by nations to manage and invest surplus revenues. Trump’s vision for this fund goes beyond conventional models, proposing it as a vehicle not only for long-term investment but also for potential strategic acquisitions, including high-profile targets in the technology sector such as the social media platform TikTok.
The second policy initiative, unveiled in January 2025, introduces an aggressive regulatory rollback requirement. Under this framework, federal agencies will be mandated to repeal ten existing regulations for every new rule they put forward. Supporters hail the measure as a necessary step to cut bureaucratic red tape, while critics warn it could strip away important safeguards in areas ranging from environmental protection to consumer safety.
The Sovereign Wealth Fund: A First for the United States
Sovereign wealth funds are not new in the global economic arena — nations such as Norway, Singapore, and the United Arab Emirates have used them to amass vast financial reserves, often investing in everything from global real estate to advanced technology. The United States, however, has never formally maintained such a fund at the federal level.
Under Trump’s directive, the fund would be capitalized through a combination of federal surplus revenues, strategic asset sales, and potentially new public-private investment mechanisms. Proponents argue that the fund could serve as a financial powerhouse, enabling the U.S. to protect critical industries from foreign takeovers, invest in emerging technologies, and generate revenue to offset federal deficits.
“The goal is to give America a competitive edge in the global marketplace,” explained one senior economic advisor familiar with the plan. “A sovereign wealth fund allows us to think long-term — to invest in our future rather than simply reacting to market pressures.”
Among the fund’s possible targets are technology platforms deemed strategically important for national security. TikTok, the Chinese-owned short-form video platform, has been a point of contention in Washington for years due to concerns over data privacy and foreign influence. While no specific acquisition plans have been formally confirmed, Trump has hinted that such moves could fall within the sovereign wealth fund’s scope.
Deregulation on Overdrive
Trump’s second major announcement — the “10-for-1” deregulation rule — dramatically escalates his earlier deregulatory policies from his first term in office. The original “2-for-1” policy required agencies to repeal two existing regulations for every new one issued. This new iteration, requiring the elimination of ten existing rules for every new regulation, is unprecedented in scale.
Supporters argue that such a measure is long overdue, citing the thousands of federal rules that, they claim, slow business innovation, increase compliance costs, and stifle job creation. “This is about unleashing the American economy from the chains of overregulation,” said a Commerce Department official. “For too long, businesses have been weighed down by outdated and unnecessary rules that add no real value to the public.”
Critics, however, caution that such a blunt approach could lead to unintended consequences. Many regulations, they note, exist to protect public health, environmental standards, and financial stability. “The danger here is not just removing red tape — it’s potentially removing essential protections,” warned Dr. Ellen Ramirez, a professor of public policy at Georgetown University.
Economic and Political Reactions
The twin announcements have sparked a flurry of debate across political, business, and academic circles. Business leaders in manufacturing, energy, and technology have expressed cautious optimism about the prospect of reduced regulatory burdens and the potential benefits of a government-backed investment fund.
Wall Street analysts have been quick to note that a sovereign wealth fund could give the U.S. unprecedented financial leverage in global markets. “This would allow America to play the investment game the way other major economies do — but at a scale no one else can match,” commented James Whitmore, a senior strategist at Global Capital Partners.
At the same time, consumer advocacy groups and environmental organizations have sounded alarms over the deregulation plan. They argue that the requirement to repeal ten rules for each new one could create perverse incentives for agencies to eliminate critical protections simply to meet quotas.
Historical Context and Precedents
While the concept of a sovereign wealth fund is new for the U.S., elements of the idea have been floated in past administrations. In the early 2000s, some policymakers proposed using federal oil and gas revenues to create a permanent investment fund, similar to Alaska’s Permanent Fund, which pays annual dividends to state residents. Those proposals never gained significant traction at the federal level.
Trump’s approach, however, ties the idea directly to national security and global economic competition. By explicitly mentioning the potential acquisition of high-profile companies like TikTok, the policy blends investment strategy with geopolitical maneuvering.
The deregulation initiative also builds on longstanding conservative critiques of the federal bureaucracy. Trump’s “10-for-1” ratio goes far beyond prior reform efforts, potentially making it one of the most aggressive regulatory rollbacks in U.S. history.
Implementation Challenges
Both initiatives face significant hurdles before becoming reality. Establishing a sovereign wealth fund will require congressional authorization, complex structuring, and careful management to avoid political misuse. Lawmakers will need to determine how the fund is capitalized, who manages it, and what oversight mechanisms ensure transparency and accountability.
The deregulation rule, while theoretically implementable through executive authority, could encounter legal challenges from stakeholders affected by the repeal of specific regulations. Federal courts may be called upon to determine whether agencies are acting within their statutory mandates when removing large numbers of existing rules.
Potential Global Implications
If implemented, the U.S. sovereign wealth fund could quickly become one of the most powerful investment vehicles in the world, given the size of the American economy and access to capital. This could alter global investment patterns, potentially allowing the U.S. to influence markets and industries far beyond its borders.
The fund’s potential interest in technology acquisitions could also heighten tensions with countries like China, already wary of U.S. restrictions on their firms. Likewise, the aggressive deregulation stance could make the U.S. a more attractive destination for foreign investment — but also a flashpoint for criticism from international bodies concerned about labor, environmental, and consumer protections.
Looking Ahead
For now, both initiatives remain in the early stages, with planning and consultation underway. Treasury and Commerce officials are expected to present preliminary frameworks for the sovereign wealth fund later this year, while federal agencies prepare to identify regulations that could be targeted for repeal under the “10-for-1” rule.
Trump and his allies argue that these moves represent a bold, future-oriented vision for America’s economy — one that combines strategic investment with a lighter regulatory touch. Opponents counter that the proposals risk undermining vital protections and concentrating too much economic power in political hands.
As with many ambitious policy shifts, the real test will come in implementation. The months ahead will reveal whether these initiatives become cornerstone achievements of a new economic era or remain controversial talking points in America’s political debate.
