In 17 months of President 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. Over 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 the U.S. government owning stakes in firms has raised concerns about the executive branch trying to “pick winners.” Additionally, it creates a conflict of interest between the government’s role as a regulator and a shareholder and the politicization of corporate decision-making.
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-2000 period, Presidents Ronald Reagan, George H.W. Bush, and Bill Clinton were highly reluctant to engage in direct ownership of companies. 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 USA 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 deny 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 overwhelmingly 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 conservative Cato Institute’s observation that Trump has created state capitalism and a stepping stone toward socialism is alarming. America’s economic stance 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.
Steve Corbin is a professor emeritus of marketing at the University of Northern Iowa and a non-paid freelance guest columnist contributor to 158 newspapers and 47 social media platforms in 44 states.
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