US Pentagon Seeks Equity Stakes in Defense Contractors

The Trump administration is considering acquiring equity stakes in major U.S. defense contractors, following its recent $9 billion purchase of a 10% stake in Intel, according to Commerce Secretary Howard Lutnick. Military leaders and Pentagon officials are evaluating whether such investments in companies like Lockheed Martin, which derives most of its revenue from the government, would be economically viable and beneficial for national security. Lutnick defended the Intel stake as a fair deal for the American people, contrasting it with what he called corporate welfare under the Biden administration's CHIPS Act. However, the move has drawn criticism from some Republicans who view government ownership in private industry as a departure from conservative free-market principles and a potential step toward socialism. Discussions are ongoing about how to finance munitions acquisitions and the broader implications of government stakes in defense firms. The administration has not yet detailed any specific plans beyond these considerations.