$50 billion would seed a proposed U.S. Strategic Investment Fund to invest alongside private capital in semiconductors, shipbuilding, critical minerals, biotech and grid equipment judged vital to national security.
The plan argues U.S. capital markets underfund long-horizon manufacturing while China has built more than 1,700 guidance funds with nearly $700 billion, helping it dominate supply chains and pressure rivals through export controls.
A cabinet-level Strategic Investment Council would pair the fund with procurement, tariffs, tax incentives and faster permitting, including multiyear federal purchase commitments for assets such as transformers, ships and energy storage.
The proposal says the fund should use loans, guarantees and convertible securities, back both U.S. and trusted allied firms, and operate under an independent board with disclosure and return targets to limit political abuse.
Framed as a modern answer to Hamilton, the RFC and Cold War industrial policy, the initiative aims to reconnect U.S. invention with domestic production before a 'second China shock' erodes technological leadership.