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Trump Administration Mulls Equity Stakes In Defense Industry, Raising Questions

By Cal Biesecker

Tuesday, August 26th, 2025

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Trump Administration Mulls Equity Stakes In Defense Industry, Raising Questions

Commerce Secretary Howard Lutnick. Photo: U.S. Department of Commerce

Commerce Secretary Howard Lutnick on Tuesday said the U.S. government is considering taking equity stakes in U.S. defense contractors, a move that defense analysts argued raises a raft of issues and challenges. Asked on CNBC whether the government should take a stake in defense companies just as it did last week with semiconductor manufacturer Intel Corp. [INTC], Lutnick replied, “but what’s the economics of that? I’m going to leave that to my Secretary of Defense and Deputy Secretary of Defense.…

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