In 17 months of President Donald Trump’s second term, he has overseen the U.S. government using taxpayer money to purchase equity stakes in 14 private and 14 publicly held companies. During the USA’s 250 years, this is — by far — the most significant change in American economic policymaking.
The Cato Institute, a conservative think tank, characterized Trump’s economic environment as state capitalism and a stepping stone toward what they refer to as “creeping socialism.” Cato’s Aug. 28, 2025 report notes “Trump’s state capitalism — a hybrid between socialism and capitalism — won’t make America great again.”
The practice of America holding ownership in firms creates conflict of interest between the government’s role as a regulator, a shareholder and politicization of corporate decision-making. Additionally, it has raised concerns about the executive branch trying to “pick winners.”
Analyzing whether Trump’s economic-related policies signal a shift toward state capitalism or socialism requires comparing his actions to modern-day presidential history and the underlying political dynamics.
1980s-2000 economic assistance
During the 1980s-2000s, Presidents Ronald Reagan, George H.W. Bush and Bill Clinton were highly reluctant to engage in any form of direct ownership of any company. The first of two exceptions occurred in 1987 when America faced technology competition from Japan. To address this issue, the Reagan administration helped fund a public-private research consortium (SEMATECH) and the government did not take any stock ownership. Next, in 1989, the George H.W. Bush administration created the Resolution Trust Corporation to manage and liquidate 747 failed and insolvent savings and loan associations.
2001-2016 presidential era
During the 2008 financial crisis, the George W. Bush and Barack Obama administrations used the Troubled Asset Relief Program (TARP) to take equity stakes in major banks, automakers and insurance companies. This was structured explicitly as a temporary bailout, with liquidation as soon as the respective markets stabilized.
2021-2024 industrial policy
There was bipartisan congressional support for the Joe Biden administration to invoke the CHIPS and Science Act and the Inflation Reduction Act, which gave subsidies to semiconductor and green energy manufacturers. The funds were structured as grants, tax credits and loans versus direct stock ownership.
2025-present
Upon taking office on Jan. 20, 2025, the Trump 2.0 administration shifted America from temporary emergency industry bailouts to a proactive form of state intervention and “creeping socialism.” Using taxpayer funds, the administration has expanded its portfolio to include stakes in 28 companies.
Privately owned companies with U.S. economic ownership
The following lists privately owned companies, private subsidiaries or private joint-enterprise structures in which the Trump 2.0 administration has used taxpayer supported funds to acquire a financial stake: 1) USA Rare Earth, 2) Vulcan Elements, 3) ReElement Technologies, 4) Atlantic Alumina Company, LLC, 5) L3Harris Technologies – Missile Solutions Unit, 6) Westinghouse Electric Corporation, 7) Quantinuum, 8) PsiQuantum, 9) Atom Computing, 10) Quantum Technology Solutions, 11) Anderon, 12) xLight Inc., 13) Diraq and 14) Crucible Metals, LLC.
Ownership in publicly held companies
Six semiconductor and advanced tech firms with U.S. direct equity stake (stock symbol is noted) include: 1) Intel Corporation (INTC), 2) IBM (IBM), 3) GlobalFoundries Inc. (GFS), 4) Analog Devices, Inc. (ADI), 5) Coherent Corporation (COHR) and 6) MACOM Technology Solutions Holdings (MTSI).
America now has a share in these quantum computing firms: 1) Rigetti Computing, Inc. (RGTI), 2) D-Wave Quantum Inc. (QBTS) and 3) Infleqtion (INFQ).
In the minerals and automotive supply chain area, U.S. stockholding exists as follows: 1) 5% ownership in Lithium Americas Corporation (LAC), 2) 10% capital stock in Trilogy Metals Inc. (TMQ) and 3) 15% stake in MP Materials Corporation (MP).
There are two other uniquely structured companies with U.S. ownership: 1) a direct equity stake of up to 20% to help Westinghouse Electric Company build a multi-billion-dollar network of domestic nuclear reactors, and 2) a “Golden Share” of U.S. Steel Corporation (X), giving the executive branch direct corporate governance rights and a seat on the corporate board.
Taxpayer alert and Congressional oversight
No one can refute the fact that the Trump 2.0 administration has made a direct pivot toward a state-directed economic environment. There are two things Americans and Congress need to reflect upon. First, a Dec., 2025 YouGov/Economist poll of Americans found capitalism remains the overwhelming preferred economic system, and only 21% prefer socialism.
Secondly, many countries have struggled and been harmed by state capitalism because it often leads to corruption, inefficiency and poorly managed resources. Well-known examples include Algeria, Brazil, China, India, the Soviet Union and Venezuela — nations the U.S. should avoid emulating.
The right-wing Cato Institute’s observation that Trump has created state capitalism and a stepping stone toward socialism is alarming. America’s economic policy from 1776 until 2025 was quite rewarding; we’re now in dangerous territory.
Congress’s passive stance during Trump’s economic upheaval brings to mind Plato’s famous adage: “silence gives consent.” A return to rigorous, bipartisan congressional oversight is long overdue.
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References:
- Michael Chapman, Trump’s “State Capitalism … a hybrid between socialism and capitalism” won’t make America great again, Cato Institute, Aug. 28, 2025; https://www.cato.org
- Joseph Zeballos-Roig, ‘The public will become very rich’: Trump wants Americans to get a cut of AI profits and some Big Tech CEOs are on board, Yahoo!Finance, June 12, 2026; https://www.finance.yahoo.com
- Fred Ashton, AI: Brought to you by the feds?, American Action Forum, June 10, 2026; https://www.americanactionforum.org
- (news release) Trump administration negotiates direct government equity stake in OpenAI via proposed public wealth fund, MLQ.ai, June 6, 2026; https://www.mlq.ai
- Sujai Shivakumar, Charles Wessner and Christina Tutino. Understanding federal equity investments in strategic companies, Center for Strategic and International Studies, Feb. 12, 2026; https://www.csis.org
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Disclosures:
- Steve is a non-paid freelance opinion editor and guest columnist contributor (circa 2013-present) to 148 newspapers and 37 social media platforms in 44 states who receives no remuneration, funding or endorsement from any for-profit business, not-for-profit organization, political action committee or political party
- Steve is Professor Emeritus of Marketing, University of Northern Iowa, Cedar Falls (1975-2013); Marketing Department Head (17 years); State of Iowa Board of Regents Award for Faculty Excellence in Teaching, Research and Service (2003)
- Steve graduated from Nevada H.S. (Nevada, IA) in 1966; University of Northern Iowa (1970 bachelor’s degree); Colorado State University (1972 master’s degree); Virginia Tech (1975 doctoral degree)
- Steve was elected to public office three times and served on the Denver Community School District Board of Education (Denver, IA) for 11 years, serves on the Advisory Board of Discerning Wealth Ameriprise Financial Services (Cedar Falls, IA) and is a member of the Cedar Falls Lions Club, Lions Clubs of Iowa and Lions Clubs International
- Steve is married to Doris J. Kelley (Iowa House of Representatives, 2007-2011; Chair/Vice-Chair – Iowa Board of Parole, 2011-2014; Chair, Iowa’s 19th Amendment Centennial Commemoration, 2017-2021)
- Steve has three sons, three daughters-in-law and three grandchildren
- “My attempt at writing op-eds since 2013 has been to try my best at shifting from today’s journalism style of ‘my truth’ to old-school journalism focused on ‘research-based truth’ and as close to scholarly research as possible to restore journalism credibility and provide a value-added op-ed to the reader.” – SBC
