The constitutional stress test is in full swing as former President Donald Trump proposes a federal sovereign wealth fund, raising serious legal and economic questions. Can a president redirect federal dollars into an investment fund without Congress? Could the government use such a fund to acquire a social media company?
These questions are just the tip of the iceberg in what is shaping up to be one of the most controversial moves of Trump’s second administration.
Can the U.S. Even Afford a Sovereign Wealth Fund?
The United States is, in financial terms, “illiquid.” While many Americans hold great wealth, the federal government is strapped with a $36 trillion debt and an annual revenue of $5.5 trillion.
Nations like Norway, Saudi Arabia, and even U.S. states like Texas and Alaska use sovereign wealth funds to manage excess revenues from natural resources. But the U.S. has already spent its wealth. So where would the money come from?
👉 Trump’s answer: tariffs.
However, even if Congress were to redirect tariff revenues to such a fund—a big political if—there’s another issue: Can the government use these funds to buy a social media company?
A Government-Owned Social Media Platform?
Imagine the federal government strong-arming a company into selling under duress.
📌 “Sell to us, or we’ll shut you down.”
This scenario raises major constitutional red flags, particularly concerning the First Amendment and Article II of the Constitution, which outlines presidential powers. The legal battles alone would be endless.
Beyond the legalities, the idea of a government-controlled social media platform could redefine free speech, blurring the lines between public and private discourse in an unprecedented way.
A Full-Frontal Attack on Congressional Power?
The proposed sovereign wealth fund is just one of many sweeping actions by Trump that challenge the role of Congress.
📌 Can Trump refuse to spend money allocated by law?
📌 Can he shut down government agencies?
📌 Can he fire civil servants protected by law?
📌 Can he put federal funds under the control of an unelected campaign donor?
These questions echo past battles over executive power, from Nixon’s presidency to Biden’s controversial moves on student loan forgiveness and eviction moratoriums. The difference? Trump’s actions go even further.
The Supreme Court Showdown
Ultimately, these challenges will likely be settled in court, and the Roberts Supreme Court has been signaling a shift toward limiting executive power.
👉 Could this be a moment where Congress reclaims its authority?
👉 Or will the courts continue to enable an expanding presidency?
Either way, the stakes are high, and the constitutional battle over Trump’s latest power play is just beginning.
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