How the U.S. government's equity holdings have surged during Trump's second term - in one chart

By Victor Reklaitis

41 companies have made deals that grant stakes to the Trump administration - and some could face probes from the new Congress

The U.S. government has announced or achieved ownership stakes in 41 private companies during the past two years, according to a tally from the Cato Institute.

A think tank that opposes the Trump administration's many equity stakes in a range of companies has rolled out a project to put a spotlight on the holdings.

The Cato Institute's new "Government Ownership Dashboard" aims to track all of the U.S. government's deals to acquire shares or other ownership rights in companies during President Donald Trump's second term.

The current extent of the holdings is shown in the chart above from the libertarian organization's online project, where details about the terms of each deal are also available. Forty-one companies have made deals so far, representing industries such as energy, minerals, semiconductors and quantum computing.

Scott Lincicome, a Cato vice president focused on economics and trade, said that when the government takes equity stakes in private companies, it's "substituting political judgment for market discipline and sacrificing regulatory independence."

"Washington has long refereed the market, and at times it has even coached or sponsored certain teams. But it has never forced its way into the game as a full-time, regular-season player. Until now," Lincicome said in an email promoting the new project.

Cato's effort comes as the administration's equity stakes look set to feel pressure in January, after Democrats took back control of the U.S. House and Senate in last week's midterm elections.

Analysts have predicted that companies that have made deals to provide stakes to the Trump administration are likely to face probes from Democratic-run congressional committees. These companies range from Intel (INTC), MP Materials (MP) and USA Rare Earth (USAR) to GlobalFoundries (GFS), U.S. Steel and Westinghouse Electric.

At the same time, some Democrats have expressed support for strategic government investments in companies.

Meanwhile, a coalition of advocacy groups sent out a letter Tuesday that calls for making sure that an annual defense package that's expected to pass next month doesn't authorize the Defense Department or other agencies to acquire equity stakes in private companies. The missive went to the top Democrats and Republicans on the House Armed Services Committee and its Senate equivalent.

Now read: Opinion: The government owns some of the same stocks you do. Here's why that is risky.

-Victor Reklaitis

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