President Donald Trump’s increasing initiative to obtain government stakes in private firms may provide Democrats with a strong foundation to enhance federal involvement in corporate America when they regain power.
Since January 2025, the Trump administration has disclosed 39 ownership stakes or similar rights in private companies, amounting to about $27.7 billion, covering sectors like mining, technology, energy, and defense, as reported by Politico. With this shift, the left is already contemplating how a future Democratic government could leverage Trump’s strategy to push forward climate, energy, and labor objectives. On the other hand, proponents of free markets express concerns that Trump’s actions complicate Republican opposition to such interventions down the road.
This approach represents a marked change from past federal engagements with private companies—actions that typically took place during wartime or economic crises. For example, during the 2008 financial crisis, the government invested heavily in banks and auto manufacturers. In contrast, Trump’s focus has been on long-term strategies aimed at securing essential mineral supply chains and boosting domestic production of semiconductors and technology.
Scott Lincicome from the Cato Institute noted that Trump’s 10% stake in Intel marks a significant shift from earlier government investments.
Lincicome pointed out that previous government stakes were usually tied to national security or emergency situations, backed by legislation, and included plans for divestment. The Intel deal, however, involves a stable company and lacks a clear exit strategy, relying on the CHIPS Act, which, according to Lincicome, does not explicitly allow for government equity stakes.
“Given that the Trump administration has opened these floodgates, it’s going to be quite tough, if not impossible, for Republicans to resist this trend once Trump has left the scene,” Lincicome observed. “Because it was indeed their party that initiated it.”
Former President Joe Biden enacted the CHIPS and Science Act in 2022 to enhance domestic semiconductor production and lessen U.S. dependence on foreign chip manufacturing. This legislation allocated approximately $52 billion in subsidies for semiconductor producers, along with additional funding for technology and scientific research.
The White House has dismissed concerns that Democrats would build on Trump’s model, asserting that the investments were voluntary collaborations aimed at bolstering American industry.
“The Trump administration has engaged in voluntary equity investments with willing companies,” said White House spokesperson Kush Desai. “After years of damaging American industry with ineffective trade agreements and diversity, equity, and inclusion regulations, it’s improbable that Democrats would seek to extend the President’s legacy of partnering with the private sector to reindustrialize the United States.”
However, left-leaning policy organizations are already strategizing on how a future administration could use government ownership to advance their own agendas. A report from the Roosevelt Institute in July discussed a potential climate plan for 2029 that proposed adapting Trump’s methods for achieving leftist goals, identifying government stakes in private businesses as tools for future policymakers. This report suggested that government ownership could facilitate quicker decarbonization, acknowledgment of unions, domestic manufacturing, and limits on stock buybacks.
Bharat Ramamurti, a former deputy director of the National Economic Council, anticipated that a Democratic president would eventually inherit these equity stakes.
“At some point, a Democratic president will inevitably confront these equity stakes,” Ramamurti mentioned, adding that the subsequent administration would need to decide how to handle them.
The notion has already gained traction among influential figures on the left. California Governor Gavin Newsom has suggested a national public equity fund to allow Americans to share in the wealth produced by major artificial intelligence companies, while Senator Bernie Sanders introduced legislation in June proposing a 50% public ownership stake in the largest AI firms.
Lincicome cautioned that expanding government ownership presents several risks, including potential distortions in capital markets. He argued that such investments might encourage investors to focus on which companies are likely to receive government support, rather than which ones are genuinely the most viable.
“The strength of the U.S. economy largely comes from capital naturally flowing to the best ideas and companies, rather than to those that have close ties with the government,” Lincicome remarked.
