Socialism

Trump Keeps Taking Equity Shares of Private Companies. A New GOP Bill Would Codify the Practice.

The bill would not only codify Trump's actions into law, it would establish a framework for both this and future administrations to do it too.

Joe Lancaster | 4.1.2026 3:50 PM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google

Media Contact & Reprint Requests

(Illustration: Midjourney/Denys Prokofyev/Dreamstime)

Since reentering office, President Donald Trump has taken equity shares in multiple private companies on behalf of the U.S. government. For example, after then-President Joe Biden awarded an $8.5 billion grant to Intel, Trump demanded a 10 percent stake in the company—all this, even though such an act has no basis in law.

A new GOP bill would not only codify the practice but expand it.

Rep. Warren Davidson (R–Ohio) has introduced the DPA Modernization Act of 2026, which would reauthorize the Defense Production Act (DPA).

Passed in 1950 at the outset of the Korean War, the DPA gives the president considerable power over the economy. While some provisions have expired over the years, the law still allows the president to compel private companies to prioritize the manufacture of certain goods if it is determined to be key to national security priorities.

© Reason.com