The United States government, under the leadership of former President Donald Trump, has aggressively directed a staggering $10 billion of taxpayer money into private American companies, according to a detailed report by the New York Times. A significant portion of these financial injections occurred during a concentrated period in October and November of 2025.
National Security as the Driving Force
The primary justification provided by the Trump administration for this unprecedented level of state involvement in the private sector is national security. The strategy is reportedly showing no signs of slowing down. To date, the US government has taken equity positions in at least nine companies spanning crucial industries like minerals, nuclear energy, semiconductors, and steel.
Experts analysing the move believe the underlying objective is to drastically reduce America's economic and strategic reliance on China and other foreign nations for essential resources and technology. This represents a significant shift in industrial policy, positioning the government as a direct investor in corporate America.
Transparency and Profitability Concerns Emerge
Despite the stated national security aims, the report has highlighted serious concerns regarding the process. Questions have been raised about the lack of transparency in selecting which companies receive funding, the terms of the deals, and the potential return on investment for taxpayer dollars.
Aaron Bartnick, a Columbia University fellow and former official in the Joe Biden administration, expressed unease about "the absence of a clearly articulated strategy." He warned that without a clear framework, "this could just devolve to arbitrary deals that favor friends or disfavor foes."
Echoing these concerns, Darrell M. West, a senior fellow at the Brookings Institution, stated that most of the deals underwent "almost no serious review." He characterized the investments as not being well thought out, involving high-risk areas, and putting taxpayer money at significant risk with no guarantee of profit.
In a strong defense of the administration's actions, White House spokesperson Kush Desai countered that the moves are both targeted and profitable. He argued that traditional policies had failed, leading to dangerous dependencies. "The administration’s targeted equity stakes ensure that taxpayers get a good bargain and that the ball meaningfully moves forward to encourage further investment by the private sector," Desai told the NYT.
A Detailed Look at the Nine Key Investments
The government's investment spree has been methodical, targeting specific players in strategic sectors. Here is a breakdown of the key deals:
June: The first move involved the US government securing a "golden share" in US Steel, granting it veto power over certain decisions, in exchange for approving its acquisition by Japan's Nippon Steel.
July: The Department of Defense acquired a $400 million stake in MP Minerals, a mining company that competes directly with Chinese firms.
August: In a major semiconductor play, the Department of Commerce became the largest shareholder in Intel. Following this deal, Donald Trump personally purchased between $1-5 million of Intel's corporate debt.
September: The Department of Energy deal with Lithium Americas provided $182 million in deferred debt service, granting the government a 5% stake in the company and a 5% stake in its Thacker Pass joint venture.
October: This month saw two significant deals. The Commerce Department secured an option to take an 8% stake in nuclear company Westinghouse. Concurrently, the Defense Department announced it would acquire a 10% stake in Trilogy Metals.
November: The government made three investments. Rare earth magnets startup Vulcan Elements received $50 million from the Commerce Department and $620 million from the Defense Department. Additionally, the Defense Department promised $80 million to ReElement Technologies for the right to future stock purchases.
This aggressive strategy has been facilitated by various government arms, including the Department of Defense's Office of Strategic Capital and the use of loan programs initially created during the Biden administration, signalling a continued, cross-administration focus on securing America's industrial base.
