STOCKS | Democrats May Challenge Trump Administration’s Stakes in Private Companies

Democrats may investigate the Trump administration’s equity stakes in private companies after taking control of both chambers of Congress next January. According to Sina Finance, the inquiry could cover Intel and dozens of companies that reached equity agreements with the government during Trump’s second term. The administration’s stake in U.S. Steel, acquired by Nippon Steel, includes a “golden share” agreed as part of the June 2025 transaction. It gives the holder veto power over key decisions, including employee compensation, capital investment and a company name change. After Trump leaves office, the veto rights are to pass to representatives of the Treasury and Commerce departments, rather than to his successor. A month after the U.S. Steel arrangement, the administration agreed to a $400 million equity investment in rare-earth company MP Materials. The following month, Trump announced that the government would take a 10% stake in Intel. A Cato Institute tracker showed government equity stakes in 14 companies in January, one year into Trump’s second term, and 41 by November; nine investments were announced in May. Its count includes completed deals and announced agreements still under negotiation. Indiana University Associate Professor Sarah Bauerle Danzman said government stakes could become a focus of congressional scrutiny. She said lawmakers would seek to ensure the investments served national security priorities rather than providing favors to political or family connections. Democrats have also signaled plans to investigate potential conflicts of interest involving Trump, his family and business associates, and to scrutinize companies whose executives sought to curry favor with the president. White House spokesperson Matthew Middleton said the administration makes equity investments with companies voluntarily and works with the private sector to rebuild the U.S. industrial base and bring key production capacity back to the country. Republican support for the government stakes remains uncertain; some Republicans, including Rand Paul, have criticized the investments as a move toward socialism.