Congress creates $100B sovereign wealth fund with 50-year lockdown on portfolio companies

What it does

This bill creates a $100 billion Manufacturing Sovereign Wealth Fund to invest in U.S. manufacturing, semiconductors, supply chains, and workforce development. The Fund is governed by a 13-member board appointed by the President and makes equity and loan investments in companies that agree to keep operations domestic for 50 years, maintain labor standards, and grant the Fund veto power over offshoring, foreign sales, and IP transfers. The bill funds the Fund through direct appropriations, tariff revenue, a 1% fee on mergers over $1 billion, a 0.1% stock trading fee, a $100 per-share buyback fee, an offshoring penalty, and a corporate tax increase from 21% to 22%. Starting in 2032, eligible individuals receive a tax credit (the "Build America dividend") equal to 25% of the Fund's average annual profits, phased out for higher earners.

Why we flagged it

The bill's core mechanism is the establishment and capitalization of a government-owned investment fund focused on domestic manufacturing, supply chain resilience, and labor standards—a form of state-directed industrial policy. The funding mechanisms (tariffs, trading fees, corporate tax increase) and the Build America dividend are secondary revenue and distribution tools.

What the text implies

• The 50-year operational lockdown on portfolio companies (no offshoring, no foreign expansion, no IP licensing to foreign entities) may reduce their ability to compete globally or adapt to market changes, potentially harming long-term returns and worker job security if companies become uncompetitive.
• The 1% M&A fee and 0.1% stock trading fee may suppress deal activity and market liquidity, with costs potentially passed to retail investors and pension funds; the buyback fee ($100 per share) is a blunt instrument that may discourage capital returns to shareholders without clear public benefit.
• The corporate tax increase from 21% to 22% applies to all corporations, not just Fund beneficiaries, and may reduce business investment, wages, or competitiveness in non-manufacturing sectors; the incidence is unclear and could harm workers in unrelated industries.
• The Build America dividend is delayed until 2032 and capped at 25% of average Fund profits over 5 years, meaning citizens receive no direct benefit for 6+ years and the amount is contingent on Fund performance and Board discretion on the phaseout structure.
• The Fund's 10-year sunset (with liquidation to Commerce Department) creates uncertainty about long-term portfolio management and may force fire-sale exits from investments before they mature, reducing returns and potentially harming portfolio companies.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill creates a public investment vehicle with strong labor protections, domestic job commitments, and worker representation on the board—genuine public benefits. However, it also imposes new taxes (corporate rate increase, trading fees, buyback fees, offshoring penalties) that may be passed to consumers or workers, and the 50-year operational lockdown on portfolio companies may reduce their flexibility and competitiveness. The Build America dividend is a real benefit to eligible individuals

Who stands to gain

• U.S. manufacturing companies in semiconductors, batteries, defense supply chains, and advanced manuf
• Small and medium-sized manufacturers receiving workforce development support
• Domestic supply chain firms benefiting from reshoring investments
• Labor organizations and workforce development institutions (board representation, training partnersh

Named in the bill

Manufacturing Sovereign Wealth Fund, Board of Governors (13 members), Industrial Sovereignty Council, Department of Commerce, Department of Treasury, Department of Defense, Department of Labor, Securities and Exchange Commission, CHIPS Act of 2022, Internal Revenue Code Section 11 (corporate tax), Trade Expansion Act of 1964 Section 232, Trade Act of 1974 Section 301 — and 1 more

Where it stands

• Jul 27, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jul 27, 2026 — Referred to House Committee on Ways and Means and House Committee on Financial Services · Congress.gov: “Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.