A Plan for Establishing a United States Sovereign Wealth Fund
This presidential order establishes a policy to maximize the stewardship of national wealth for American citizens by creating a sovereign wealth fund.
The Secretaries of the Treasury and Commerce, in coordination with the Assistant to the President for Economic Policy, must develop a plan for the fund's establishment within 90 days.
This plan should include funding, investment strategies, structure, governance, and legal considerations.
The order clarifies that it does not create any new legal rights or benefits and is subject to available appropriations.
Arguments For
- Intended benefits: Enhance long-term financial health and international leadership of the U.S. by creating a sovereign wealth fund. Reduce the tax burden on citizens and businesses. Ensure economic security for future generations.
- Evidence cited: The order cites the President's authority under the Constitution and laws of the United States as the basis for this action. Further economic justification is implicit within the stated goals.
- Implementation methods: The order directs the Secretaries of Treasury and Commerce, in coordination with the Assistant to the President for Economic Policy, to develop a comprehensive plan within 90 days. This plan includes recommendations on funding, investments, structure, governance, and legal considerations.
- Legal/historical basis: The order is based on the President's constitutional authority and existing laws of the United States.
Arguments Against
- Potential impacts: Potential negative impacts could include the opportunity cost of the funds not being used for immediate social programs. Concerns might arise regarding transparency and accountability of the fund's management and investment.
- Implementation challenges: Developing a robust and legally sound plan within 90 days may be challenging. Securing Congressional approval for any necessary legislation might be difficult.
- Alternative approaches: Alternative methods for addressing long-term financial stability and economic growth might include targeted investments in infrastructure, education, or research and development.
- Unintended effects: Unforeseen market fluctuations or mismanagement of the fund could lead to financial losses. Political disagreements over investment strategy and fund governance could hinder its effectiveness.
By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to promote the long-term financial health and international leadership of the United States, it is hereby ordered:
This is the presidential directive, stating the authority under which the order is issued and its purpose: to improve the long-term financial health and global influence of the United States.
Section 1. Policy and Purpose. It is the policy of the United States to maximize the stewardship of our national wealth for the sole benefit of American citizens. To this end, it is in the interest of the American people that the Federal Government establish a sovereign wealth fund to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally.
This section declares the U.S. policy of maximizing national wealth for the benefit of its citizens.
It mandates the creation of a sovereign wealth fund to enhance fiscal responsibility, reduce tax burdens, secure the economic future, and strengthen the nation's global economic position.
Sec. 2. Sovereign Wealth Fund. The Secretary of the Treasury and the Secretary of Commerce, in close coordination with the Assistant to the President for Economic Policy, shall develop a plan for the establishment of a sovereign wealth fund consistent with section 1 of this order. The Secretary of the Treasury and the Secretary of Commerce shall jointly submit this plan to the President within 90 days of the date of this order. Such plan shall include recommendations for funding mechanisms, investment strategies, fund structure, and a governance model. The plan shall also include an evaluation of the legal considerations for establishing and managing such a fund, including any need for legislation.
This section assigns the responsibility of creating a detailed plan for the sovereign wealth fund to the Secretaries of the Treasury and Commerce, working together with the Assistant to the President for Economic Policy.
The plan is due within 90 days and must cover funding, investment, structure, governance, and legal aspects.
Sec. 3. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
This section includes important limitations and clarifications.
It states that the order does not override existing laws or agency authorities.
Implementation depends on available funding and the order does not grant any new legal rights.