Commerce Secretary Howard Lutnick said the Defense Department is considering taking an equity stake in defense contractors that already receive significant business from the Pentagon.

“There’s a monstrous discussion about defense. I mean, Lockheed Martin makes 97% of their revenue from the U.S. government. They are, basically, an arm of the U.S. government,” Lutnick said on CNBC’s Squawk Box on Tuesday. “But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense.”

Recommended Stories

• Democrats decry Trump’s order to train Guard troops to maintain public order is militarizing domestic law enforcement
• Trump honors Abbey Gate Gold Star families on anniversary with proclamation
• Trump and Hegseth look to rename Defense Department as 'Department of War'

“These guys are on it, and they’re thinking about it. But I tell you what, there’s a lot of talking that needs to be had about how do we finance our munitions acquisitions?” Lutnick said. “Donald Trump [is] at the head, thinking about what is the right way to do it. I tell you, the way it has been done has been a giveaway.”

Lutnick’s comments follow the government’s acquisition of a 10% stake in the computer chipmaker Intel. This move came after Intel received $9 billion in funding under the 2022 CHIPS and Science Act.

TRUMP DEFENDS INTEL STAKE AFTER CRITICIZING SOCIALIST DEMOCRATS

The Washington Examiner reached out to the Pentagon and Lockheed Martin for comment.

Trump implied the United States is “going to have many more cases like” Intel soon.