New Act Launches 25-Member Commission to Study Creating a U.S. Sovereign Wealth Fund

The American Sovereign Wealth Fund Exploration Act doesn’t create a massive national investment fund—at least not yet. What it does is set up a high-powered, 25-member commission tasked with figuring out if the U.S. should create one and, if so, exactly how it would work. Think of it as Congress ordering a two-year, multi-million-dollar feasibility study on a policy that could fundamentally change how the government manages its money.

The Ultimate Policy Deep Dive

Within 90 days of this Act becoming law, the Chair of the Federal Reserve is required to get this new Commission on Exploring the Creation of a Sovereign Wealth Fund of the United States up and running. The commission is composed of 25 members, including six from the Federal Reserve, three from the Treasury Department, three from the SEC, and ten outside experts in finance and economics. Notably, the Fed Chair gets to appoint 16 of the 25 members, which is a significant concentration of appointment power that will likely shape the commission’s overall perspective.

This group isn't just going to chat about the idea over coffee; they are mandated to look into every single detail. Their investigation is broken down into four huge areas that affect every American taxpayer. First, they must figure out where the money would come from. The bill lists everything from natural resource revenue and existing government assets to taxes, tariffs, borrowing money, and even foreign contributions. Second, they need to determine what the fund would own—stocks, bonds, real estate, infrastructure, and even strategically important ventures. Third, they must explore how the money gets used, including paying down national debt, funding infrastructure, stabilizing the currency, or even paying direct dividends to citizens.

Governance and Real-World Impact

The commission is also required to design the fund’s management structure, focusing on international best practices like the Santiago Principles, which emphasize transparency and political independence. This is crucial because a fund of this size would be a massive target for political interference. They must figure out the legal setup, ethics rules, and how investment decisions are made, paying close attention to what happens if the fund loses money.

Perhaps the most important part of their mandate is the Impact Analysis. They have to study the ripple effects of creating this fund on things that hit your wallet directly: the national budget, the stock market, inflation, the housing market, and wealth inequality. This means they can't just focus on potential profits; they have to analyze the potential downsides for everyday people.

The Final Report: A Blueprint for Change

No later than two years after their first meeting, the commission must deliver a final report to the President, Congress, and the public. This report isn't just a summary of what they found; it must contain detailed recommendations for specific laws Congress should pass. In short, this Act is the first step in a long process that could lead to the U.S. establishing a massive, government-controlled investment vehicle. For busy people, this commission’s work is the signal that a major policy shift—one that could affect everything from your 401(k) to the national debt—is being seriously explored at the highest levels.