President Trump signed an executive order to create a U.S. sovereign wealth fund on Feb. 3. AFP via Getty Images

Earlier this month, President Donald Trump signed an executive order to create a national sovereign wealth fund, a first in U.S. history. The move raised questions about how such a plan would take shape. A sovereign wealth fund often serves as a vehicle to invest a government’s budget surplus. However, the U.S. federal government has financed its operations using debt raised from Treasury bonds for more than 20 years and has accumulated $36.5 trillion in debt. It would need to borrow even more money to finance a sovereign wealth fund. Under the executive order, the secretaries of the Treasury and Commerce have 90 days to develop a plan to create the fund.

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