Federal equity grabs under Trump lack clear legal authority, analysts warn

Over the past 16 months the executive branch has acquired equity in 35 companies, covering steel, critical minerals, semiconductors, quantum computing, nuclear power, rocket motors and oil, often citing statutes such as the Defense Production Act and the CHIPS Act. No statute cited actually authorizes the federal government to own private stock, and officials have offered only brief press releases without substantive legal justification.

Senate hearings have highlighted the absence of a formal memo, and former officials have expressed skepticism about the Office of Management and Budget’s reasoning. Legal scholars note that past presidents never interpreted these laws as a license for ownership, and Congress has previously rejected similar authority. Proposed legislation to force divestiture or to codify limited equity powers faces partisan hurdles, leaving the portfolio and its unclear legal basis likely to persist beyond one outlet administration.