Market strategists warn of scrutiny for US government ownership stakes

The US government has quietly become one of the more active investors on Wall Street, and not everyone is comfortable with that. Since early 2025, the Trump administration has executed roughly 30 equity and quasi-equity transactions totaling nearly $27 billion, converting federal grants and loan authorities into direct ownership stakes in private companies. The government now holds a 10% equity stake in Intel and a 15% stake in MP Materials, both tied to CHIPS Act funding and the Defense Production Act. How it got here The execution is where things get complicated. Legal frameworks for these transactions are drawing scrutiny, and an Intel shareholder lawsuit is already challenging the legitimacy of the government’s equity demands tied to CHIPS Act funding. The plaintiffs argue the legal basis for those equity claims is shaky, a finding that, if upheld, could unwind some of the administration’s most prominent deals. The numbers working against the policy Public sentiment is not helping the administration’s case. A July 2026 CNBC poll found that 49% of voters view government ownership stakes in US companies as inappropriate, while only 19% expressed support. Among economists, the ske...