A Hybrid Blueprint for a U.S. Sovereign Wealth Fund

The proposed fund would draw its primary strength from a restructured extraction fee. Raising the current 12.5% excise tax on federal land mineral production to 50% could generate between $35 billion and $50 billion annually. While such a shift might seem steep, it mirrors the 78% rate leveraged by the Norwegian Petroleum Tax Office, suggesting that private extraction remains viable even under significantly higher fiscal pressure. This base capital would provide the liquidity necessary to support high-growth sectors, including biotechnology, clean energy, and advanced aerospace manufacturing.

Governance would rely on an independent board of asset managers, effectively insulating the portfolio from short-term political cycles. The investment strategy prioritizes domestic supply chain security through a dual-class equity mechanism. This structure allows the fund to hold substantial stakes in firms like Commonwealth Fusion Systems or space-tech pioneers without stifling their operational agility. By tying disbursements to technical milestones—such as successful lunar landings or net energy gains in fusion—the fund shifts the risk profile away from the taxpayer and toward measurable innovation. This market-led approach could allow the U.S. to redirect capital from stagnant international projects toward agile, domestic ventures, ensuring that public resources catalyze rather than replace private-sector efficiency.