President Trump on Monday signed an executive order to create a sovereign wealth fund for the U.S., which would take government surpluses and invest the money into potentially risky asset classes that could generate high returns.

Treasury Secretary Scott Bessent and Howard Lutnick, Mr. Trump’s nominee for Commerce secretary, are tasked with spearheading the effort. 

“It’s about time the U.S. had a sovereign wealth fund,” Mr. Trump told reporters in the Oval Office during the signing ceremony.

The president suggested the government could use the funds to purchase TikTok, the social media platform that was briefly banned in the U.S. 

Mr. Bessent said the wealth fund should be set up within the next year.

“We’re going to monetize the asset side of the U.S. balance sheet for the American people,” he said. “We are going to put the assets to work.” 

The move fulfills a campaign promise by Mr. Trump, who repeatedly touted the benefits of creating such a fund, which are popular investment vehicles for governments in Asia and the Middle East. Those countries direct their budget surpluses toward a wide range of investments to help wield their influence around the world. 

It is unclear how the U.S. fund would operate, given that the federal government has run large benefit deficits and rarely has surplus cash to invest in such a vehicle. The last time the federal government had a surplus was in 2001. 

One possible idea would be to redirect any funds paid on tariffs Mr. Trump has imposed on China, Canada and Mexico. Earlier Monday, Mr. Trump said he would pause the Mexico tariffs for one month. 

A sovereign wealth fund would also require the approval of Congress, and lawmakers might object to the idea that the president could circumvent their spending powers to authorize investments. 

In a speech last September at the Economic Club of New York, Mr. Trump touted the benefits of an American sovereign wealth fund. He said it would “invest in great national endeavors for the benefit of all of the American people.” 

He also suggested that the gains could be used to pay down the national debt. 

The Biden administration had also floated the idea of a sovereign wealth fund.

There are more than 100 sovereign wealth funds around the world with combined assets worth over $10 trillion, according to data from the Sovereign Wealth Fund Institute. Saudi Arabia, Kuwait, China and Norway have some of the funds in the world, redirecting gains into infrastructure and technology projects. 

• Jeff Mordock can be reached at jmordock@washingtontimes.com.