The Trump administration is snapping up ownership shares of private companies it deems essential to national security. It is an unusual new strategy that has already committed more than $10 billion in taxpayer funds and shows little sign of slowing.

The government’s growing portfolio of corporate ownership involves minority stakes, or the option to take them in the future, in at least nine companies involved in steel, minerals, nuclear energy and semiconductors, a New York Times analysis found. The deals were all struck in the past six months, with the bulk made in October and November.

New government stakes in private firms

CompanyPriceWhat U.S. GetsIntel
Chips $8.9 billion
Commerce Dept.9.9% stake Lithium Americas
Minerals $182 million in deferred debt service
Energy Dept.5% stake in Lithium Americas and 5% stake in Thacker Pass joint venture MP Materials
Minerals $400 million
Defense Dept.7.5% stake, plus right to an additional 7.5% stake ReElement Technologies
Minerals $80 million
Defense Dept.Right to future stock purchase at set price Trilogy Metals
Minerals $35.6 million
Defense Dept.10% stake, plus right to an additional 7.5% stake Vulcan Elements
Minerals $50 million
Commerce Dept.$50 million equity Vulcan Elements
Minerals $620 million
Defense Dept.Right to future stock purchase at set price Westinghouse
Nuclear energy N/A
Commerce Dept.Option to take 8% stake U.S. Steel
Steel N/A
Cfius approval“Golden share”

Notes: In exchange for stakes, the government has offered companies a mix of grants and loans, as well as other types of approvals. The "golden share" in U.S. Steel is non-financial and does not give the government equity. The Westinghouse deal involves a brokered investment by Japan in the company. This chart excludes stakes taken by the Development Finance Corporation, an agency that has taken stakes in companies and funds under multiple administrations. Source: Company and government announcements. Keith Collins/The New York Times

The effort appears mostly driven by national security concerns, particularly a desire for the government to prop up strategic industries and lessen America’s reliance on foreign countries like China for key resources. Some officials are hopeful the equity stakes will generate a windfall for taxpayers, but the likelihood of that is unclear. Many of the companies are facing financial headwinds, and some could take years to become profitable.

The unusual government intervention into the private market is fueling some concerns, including the opacity of the process, the potential for favoritism, corruption and market distortions, along with the possible loss of taxpayer funds should the investments fail.

Aaron Bartnick, a fellow at Columbia University and a former Biden White House official, said there were serious questions about whether the government role in private industry would address national security vulnerabilities and deliver a return on taxpayer dollars.

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