US Government Invested $27.7 Billion in Strategic Deals
The federal government has secured equity stakes in key private companies to bolster domestic supply chains.
Updated on Sept. 30, 2026 in Economic Policy
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Since January 2025, the Trump administration has finalized 39 investment deals totaling $27.7 billion. These agreements, which include both loans and direct equity stakes, were designed to secure critical materials and national security assets.
Why it matters
By integrating equity stakes into its portfolio, the government is shifting toward a model of direct participation in private industry. This strategy aims to stabilize domestic supply chains and reduce reliance on foreign material sources.
The federal portfolio now includes a $8.9 billion, 10 percent stake in Intel and a $1 billion investment in L3Harris. Officials also hold a 35 percent equity stake in North American Blue Energy Partners, though the final profitability of these holdings remains unresolved.
The players
Intel
A major semiconductor manufacturer that received an $8.9 billion investment from the government in exchange for a 10 percent equity stake.
L3Harris
A defense technology company that closed a $1 billion strategic investment deal with the Defence Department in April 2026.
Defence Department
The federal agency responsible for managing national security investments, including equity stakes in critical supply chain partners.
Commerce Department
An executive agency that helped shape these investment deals using repurposed funding from the Chips Act.
Development Finance Corporation
A government agency that provides loans and investments for projects supporting U.S. foreign policy and supply chain security.
The details
Agencies including the Commerce Department, the Pentagon, and the Development Finance Corporation utilized unused grant funding from the Biden-era Chips Act to structure these investments. The deals range from a $400 million stake in MP Materials to a $600 million investment in the Orion Critical Mineral Consortium. These actions allow the government to act as a shareholder in companies deemed critical to national security.
Timeline
January 2025 marked the beginning of the administration's investment deal activity.
July 2025 saw the Defence Department acquire an equity stake in MP Materials.
August 2025 was the period when the government finalized its stake in Intel.
January 2026 brought the announcement of a $280 million deal with USA Rare Earth.
April 2026 was when L3Harris closed its $1 billion investment agreement.
Money Landscape
These investments mark a shift toward active state capitalism within the U.S. industrial sector. The move extends the scope of the Biden-era Chips Act by pivoting from simple grants to direct federal ownership.
The government's heavy investment in companies like Intel and L3Harris signals a long-term prioritization of domestic manufacturing sectors. Households monitoring these shifts should review how such industrial trends may influence their broader portfolio exposure to the tech and defense sectors.
The takeaway
The government has become a major shareholder in several strategic U.S. industries to solidify supply chain security. Investors should track future federal filings to understand how these equity positions may affect the market competitiveness of these companies.
Further reading
For more on how legislative changes influence industry, visit our Economic Policy section.
Source note: This article includes information reported by The National.
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