Trump's new executive order kicked off the process for creating a sovereign wealth fund, with the goal of generating more revenue for the government.
Sovereign wealth funds are investment funds created by national governments, usually to manage state-owned assets.
Such funds are often financed by major federal revenue surpluses, often generated by the state’s natural resources or other windfalls, according to experts at the Center for Global Development (CGD).
But Trump has another idea in mind for a U.S. fund.
The president said the wealth fund could be used to purchase a controlling stake in TikTok, which could preserve the app’s availability and wrest it from the control of a Chinese company.
And he suggested last month that the U.S. could participate in a joint venture to acquire TikTok and prevent the app from being banned under a law signed by former President Biden.
“TikTok — we’re going to be doing something, perhaps, with TikTok, and perhaps not, if we make the right deal we’ll do it, otherwise we won’t, but I have the right to do that,” Trump said.
“And we might put that in the sovereign wealth fund, whatever will make. Or if we do a partnership with very wealthy people. A lot of options, but we could put that as an example of the fund.”
Whether a sovereign wealth fund will be created, let alone purchase TikTok, is still an open question. While there is bipartisan support for the concept, the devil in the details.
Here are the five things you need to know about Trump's plan.
