Trump govt stake in US firms balloons to $10 billion amid national security & strategic concerns — Here's a look

The Donald Trump-led United States government's investments in private American companies has reached $10 billion with majority of the deals coming through in October and November 2025, according to a New York Times report.

Largely the reasoning behind engaging taxpayer money in private entities given by the Trump administration is national security, and the strategy “shows little sign of slowing”, the report added.

Till date, the US government has acquired shares in at least nine companies across key sectors such as minerals, nuclear energy, semiconductors and steel. Experts believe the decisions have been driven with a view to reduced reliance on China and resources from foreign countries, it said.

Concerns raised over transparency, return on taxpayer dollars

The report highlighted concerns raised over the selection process while choosing which private companies get government funding, transparency in deals, and questions over the return on taxpayer money used for the deals.

Speaking to NYT, Columbia University fellow and former Joe Biden official, Aaron Bartnick said there were serious questions over “the absence of a clearly articulated strategy” and that there are concerns “this could just devolve to arbitrary deals that favor friends or disfavor foes.”

Darrell M West, a senior fellow at Washington think-tank Brookings Institution feels that most of the deals had “almost no serious review”, adding, “They don’t seem well thought out. Some of the investments involved high-risk areas. There’s no guarantee the government’s going to make money, so they’re really putting taxpayer money at risk.”

In defense of the administration, White House spokesperson Kush Desai said the moves are targeted and profitable. “If business-as-usual policies worked, America would not be reliant on foreign countries for critical minerals, semiconductors and other products that are key for our national and economic security. 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,” he told the NYT in a statement.

How has US govt acquired stakes in private companies?

While the Trump administration's moves are not unique — over the past five years, US government has invested in international funds and companies through the US International Development Finance Corporation — it is indeed aggressive.

Also, the Trump government has used other avenues to increase involvement in the private sector, for example the Department of Defense has made investments in many mineral companies. Set up in 2022, the department's Office of Strategic Capital received additional funding to invest in critical minerals, shipbuilding and other key sectors.

Further, the Department of Energy has used loan programs created by Biden to also acquire stakes in mineral companies; and the Department of Commerce has similarly leveraged Biden-era semiconductor fund and investments from foreign countries to build its portfolio.

Which nine companies got US govt investments?

• The first move came in June, with Donald Trump gaining a “golden share” in US Steel for approving the acquisition offer by Japan's Nippon Steel. The non-financial stake gives the administration veto power over certain company decisions.
• Then in July, the Department of Defense acquired a $400 million stake in mining company MP Minerals, that has faced tough competition from China.
• In August, the Department of Commerce became the largest shareholder in US chips giant Intel. NYT cited a public filing which showed that after the government deal, Donald Trump personally purchased around $1-5 million of Intel's corporate debt.
• Another deal was with minerals company Lithium Americas in September. The company has got $182 million in deferred debt service from the Energy Dept, for the government getting 5% stake in Lithium Americas and 5% stake in Thacker Pass joint venture.
• In October, the Commerce Dept has acquired the option to take 8% stake in nuclear company Westinghouse to help facilitate construction of nuclear reactors across the US. If the company's value reaches $30 billion, it is required to take an IPO with the government holding right to purchase a fifth of the public company.
• Also in October, the Defense Dept said it would acquire 10% stake in mining company Trilogy Metals.
• In two deals in November, rare earth magnets making startup Vulcan Elements attracted US government equity and warrants in return for $50 million from the Commerce Department and $620 million from the Defense Department.
• Also in November, a deal was made with mineral firm ReElement Technologies, with the Defense dept promising $80 million for right to future stock purchase at set price.