President Donald Trump’s administration is weighing whether the Pentagon should acquire equity stakes in leading U.S. defense contractors, including Lockheed Martin, according to Commerce Secretary Howard Lutnick.
Lutnick said the Defense Department is actively debating the move after the White House took a 10% stake in Intel last week through a roughly $9 billion deal. He argued the current system of financing defense projects has been “a giveaway” and suggested Trump is considering an overhaul of Pentagon appropriations.
NEW - Trump's Pentagon holding "monstrous discussion[s]" about taking equity stakes in military defense contractors, says Commerce Secretary Lutnick. pic.twitter.com/yW3ougW5sG
— Disclose.tv (@disclosetv) August 26, 2025
Lockheed, which derives most of its revenue from government contracts, was described by Lutnick as “basically an arm of the U.S. government.” Trump has openly praised the Intel deal, vowing to make similar arrangements “all day long.”
US Is Considering A Stake In Lockheed Martin And Other Defense Firms, Lutnick Sayshttps://t.co/rgutQdMQs1 pic.twitter.com/lXsixed31M
— Forbes (@Forbes) August 26, 2025
Critics warn the strategy risks government overreach. Sen. Rand Paul said partial ownership of companies amounts to “a step toward socialism,” while Cato Institute economist Scott Lincicome cautioned it could politicize corporate decision-making.
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